Yards weather crisis

The economic turmoil in Asia has weakened the markets for raw materials and has contributed to the downward pressure on shipping rates globally.

:Despite the dramatic fall in the value of all currencies in South East Asia (See panel) the Association of Singapore Marine Industries (ASMI) reports a slight increase in revenue for 1997 totalling S$3.4 billion.

During that year shiprepair continued to be the major contributing sector, says the ASMI`s annual report. Traditional shiprepairs, including conversions and modifications of vessels, made up almost 46 per cent of the industry`s turnover as shipyards diversified into offshore repairs and conversions. Shipbuilding accounted for about 30 per cent of the Singapore marine industry`s total revenue, says the ASMI.

In March this year the impending merger of Hitachi Zosen Singapore and Keppel Shipyard was announced. Such strategic alliances are taking place for rationalisation and better utilisation of limited resources, says the ASMI. The Association reports that cruise ship conversion and upgrading is fast gaining importance in the region, and welcomes the Government`s plan to make Singapore into a one-stop cruise centre which, it says, will offer growing opportunities for repairs of cruise vessels.

In the shipbuilding sector the ASMI says that shipyards are moving towards the building of specialised vessels such as patrol craft, ferries, product tankers, feeder container vessels and dredgers.

Shipbuilding in Singapore generated a turnover of $1,026 billion in 1997, says the ASMI, which saw reduced activity and fewer ships delivered for the year. In 1997, the number of ships launched was 130 compared to 162 in 1996. The gross tonnage launched in 1997 was 241,096 compared with 294,602 in 1996.