The staple diet of German shipyards

Thyssen Krupp yards build GEBAB quarter.

In the face of intense competition from Far Eastern shipbuilders, it comes as a surprise that German shipyards are still able to win orders for feeder container ships. The explanation of this phenomenon lies in a mixture of customer loyalty, good quality products, generous tax concessions to private German investment companies, subsidies from the local government and strenuous efforts by local shipbuilders to improve efficiency and reduce costs.

Other factors are the lack of building berths in Far Eastern yards and the high charter rates give European yards, and particularly those in Germany, the chance to build container ships. The shipbuilding subsidies of 6% under the EU agreement are an additional encouragement for the ship owners.

Recent examples of this continuing trend is the order placed by GEBAB (Gesellschaft für Konzeption und Betreuung privater Investitionen mbH, Meerbusch) for four 2,700TEU feeder boxships. Two units will be built at Blohm + Voss in Hamburg and the other pair at Nordseewerke in the inland port of Emden. Both yards are members of the ThyssenKrupp group of companies.

For the construction of the first two container ship, the Federal Republic of Germany and the Hanseatic City of Hamburg have approved subsidies. Work on the Blohm+Voss newbuildings started earlier this year with delivery scheduled in May 2005.

The first Nordseewerke vessel is slated for completion in early 2007. All four ships will be operated by the Elsfleth shipping company MARTIME GmbH and will be classed by GL.