DEIA - On Sunday, the 1^st of February 2009

J. BAEZA

Photo caption: Facilities of the former ARN shipyard, with La Naval across the river estuary. PHOTO: ZIGOR ALKORTA

BILBAO. In barely five years, the Basque shipyards have progressed from lacking work-load to having a full order book. In the midst of a global crisis whose end is unknown, the shipbuilding industry is immersed in a counter-cycle, enjoying its most brilliant period for decades. Shipbuilders have their order books full and vessels queuing up to occupy berths. Nevertheless, there is always a “but”, and in this case it is that the fluctuations in the world economy might make it difficult for ship-owners to obtain financing. Whatever happens, the current work-load guarantees activity until at least 2011.

If we limit ourselves to the last financial year, the recently finished 2008, the prospects could not be more optimistic, not only in terms of new orders achieved but also in delivery of vessels. As a result, the four big ones (CNN, Zamakona, Murueta and Balenciaga) finished 2008 with 43 units in their order books, four more than a year previously.

Zamakona moved from 22 to 20 (9 for the Pasaia yard and 11 for Santurtzi), Balenciaga increased by seven units (12 as opposed to 5), Murueta is working on 8 and CNN on 3.

With regard to attracting orders, the four companies won orders for 22 vessels, compared to the 15 obtained in 2007 (Balenciaga won contracts for 8, Murueta 7, Zamakona 6 and CNN one). As regards delivery commitments, the Basque shipyards complied with terms and lead times.

MILESTONES Two of the most substantial contracts for the Basque shipyards were negotiated late in 2008 and involved Murueta and CNN. In fact, La Naval (CNN) has not yet officially announced this because some small details are still pending. What is certain is that Astilleros Murueta will take charge of the construction of three freighters for the Colombian ship-owner Navesco, which will be the largest vessels this company has ever built. The dimensions of these vessels (120 metres overall length, more than 15 metres breadth and 8 metres depth) will oblige the company to undertake construction on the group’s slips in Erandio, at the facilities of the former Astilleros Reunidos del Nervión (ARN). The delivery schedule will be stepped between late 2010 and throughout 2011 and 2012.

Although the company management is keeping prudently quiet, it is taken for granted that in a few weeks CNN-La Naval will announce a contract to build the largest offshore vessel in the world. Although some small details need to be ironed out, it is known that the vessel, valued at over 130 million euros, will have a length of 158 metres and breadth of 30.

FUTURE Juan Arana, assistant manager of Astilleros Murueta, could not hide his satisfaction for the "positive period" that the sector is experiencing, although, well aware of more difficult times, he conveyed his caution to DEIA. "We are not noting the effects of the financial crisis yet and we do not expect them to affect us in the short term, although I can’t guarantee that beyond 2011, when we deliver everything promised, projects dependent on financing will finally materialise. It is now, at a boom time, when we have to secure new contracts and think in the medium term"

Juan Arana, assistant manager of Astilleros Murueta, is aware that the future of the Basque shipyards means specialization; specialisation as an almost compulsory requirement since the current demand for giant gas tankers or LNG carriers involves vessels too big for the existing facilities, and because there is very fierce competition in this segment from Korean and Japanese shipyards. “We cannot compete in large ships, so we have to specialize in other vessels, patrol boats, tuna seiners and freighters, and we have not ruled out exploring new market niches such as seismic vessels or vessels for inland waterways, among others”. After expressing his satisfaction because neither the shipbuilding sector nor its auxiliary industries are suffering the impact of the current crisis (in the way of lay-offs, closures or dismissals), Arana encouraged all workers who have been totally or partially pushed out of the labour market (basically metal fabricators, welders, electricians) to steer their training towards the shipbuilding sector, a segment that needs skilled personnel and offers greater guarantees than others at the present time. J.B.