On the level

The present Dutch government has granted its shipbuilders 860 million ($58.6 million) in subsidies over the next 18 months under the provisions of

the European Commission?s Temporary Defensive Mechanism (TDM). National shipbuilders expect the new parliament, which will be elected early next year, to maintain the policy.

TDM subsidies have been introduced to give European shipbuilders a counter to alleged unfair pricing practices by the Korean shipbuilding industry, while the World Trade Organisation (WTO) investigates allegations brought by the Committee of European Union Shipbuilders Associations (CESA) that Korea is in breach of the WTO Agreement on Subsidies and Countervailing Measures. Subsidies up to 6% of contract value are permissible under the TDM on containerships and product/chemical tankers.

VNSI, the Netherlands? Shipbuilding Industry Association, is glad, given the circumstances, that the government has introduced the subsidies. It believes that they will enable the country?s shipbuilders to realise an order intake of 81 billion this year, on a par with previous years. However it would rather shipbuilders across the world operated on a level playing field.

“We still have the opinion that these measures are very bad for the market,” says Ruud Schouten, managing director of VNSI.

The Association stands alongside other European shipbuilders in its complaint with Korea. But it also feels subsidies in Europe will create internal differentials within the Union, based on how individual governments interpret and implement the central directives.

“The Dutch Government is, and has always been, very tough in the doctrine,” says Schouten. The fear is that other European governments will make a more liberal interpretation of the directives which will give their shipbuilders an advantage over the Dutch.

“There should be a European level and there isn?t,” says Schouten. “We think subsidies are bad for everyone.”

White elephant scrapped

Rotterdam-company Hapo International Barges is dismantling the 6,000t mid-ship section originally built by Cammell Laird to extend the cruise ship Costa Classica. The section was later sold to other interests after the vessel?s owner terminated the jumboisation contract and the UK yard collapsed.

Hapo workers are stripping the section of any of its resaleable equipment ? such as the air conditioning units, generators and fittings. After this, the hull section will be scrapped.

The section was transported to Rotterdam by Smit Transport?s Giant 2 semi-submersible barge. It took four days to undertake the complex loading procedures and a further two days to sail from Birkenhead to Rotterdam.