Challenge, Response & Opportunity:Challenge, Response & Opportunity:

Evolution of World Shipbuilding Evolution of World Shipbuilding IndustryIndustry

OECD WP6 WorkshopOECD WP6 Workshop44--5 December 20085 December 2008

The Korea Shipbuilders’ AssociationThe Korea Shipbuilders’ Associationwww. koshipa.or.krwww. koshipa.or.kr

Change of Shipbuilding Market Size

Shipbuilding Market ; More Openness

Emerging of New Ship Market

Innovation of Ship Construction

2. Changing Structure of World Shipbuilding2. Changing Structure of World Shipbuilding

Innovation of Ship Construction

Rapid Tech. Transfer & Labor Movement

Increasing Challenge ; Safety & Environment

Challenge and Future Shipbuilding Market

Change of Shipbuilding Market Size ;World Economy & Seaborn TradeWorld Economy & Seaborn Trade

Source : IMF

Global Seaborn Trade since 1968

20000

25000

30000

35000

Oth. Cargo est.GrainCoalIron oreOil productsCrude oil

0

5000

10000

15000

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

40,000

50,000

60,000

Thou.GT

Change of Shipbuilding Market Size ;Trends of New Orders since 1952Trends of New Orders since 1952

-

10,000

20,000

30,000

1952 1957 1962 1967 1972 1977 1982 1987 1992 1997 2002 2007

Korea Japan Europe China Others

Source : Lloyd’s RegisterSource : Lloyd’s Register

30,000

35,000

40,000

45,000

50,000

55,000

OTHERS

CHINA

EUROPE

S. KOREA

JAPAN

'000 GT

Source : Lloyd's

Completions Trends in 1926~2006Completions Trends in 1926~2006

0

5,000

10,000

15,000

20,000

25,000

30,000

１９

２６

１９

２８

１９

３０

１９

３２

１９

３４

１９

３６

１９

３８

１９

４０

１９

４２

１９

４４

１９

４６

１９

４８

１９

５０

１９

５２

１９

５４

１９

５６

１９

５８

１９

６０

１９

６２

１９

６４

１９

６６

１９

６８

１９

７０

１９

７２

１９

７４

１９

７６

１９

７８

１９

８０

１９

８２

１９

８４

１９

８６

１９

８８

１９

９０

１９

９２

１９

９４

１９

９６

１９

９８

２０

００

２０

０２

２０

０４

２０

０６

JAPAN

Shipbuilding Market ; More Openness

~ The 2nd WW ;

Shipbuilding=National Market

(Public Sector)

Since 1990 & 2000

Foreign Investment

Since 1950

Privatization & Tech. Transfer

Factors Driving Foreign Investment

Government Support

Lower Production CostsAvailability of Infrastructure

Skilled Labor forces

Transition of Technology

Outsourcing of ship blocs

Outsourcing, Tech. Transfer

Strategic Alliances

Investment, Acquisitions

Joint Ventures, Mergers

Foreign Investments in N.E Asia

China

(Daewoo, Samsung, STX, Kawasaki,

Tsuneishi, Imabari, R ffl t )

Aker (STX)

Vietnam (Mipo)Philippines

(Hanjin, Tsuneishi)

Raffles, etc.)

Emerging of New Ship MarketNeeds for New Concept & TechnologyNeeds for New Concept & Technology

Ultra-Large ContainerUltra-Large Container LNG ShipLNG Ship Clean EnergyIncreasing Volume Ultra-Large ContainerUltra-Large Container LNG ShipLNG Ship

Drill ShipDrill Ship Ice-Class ShipIce-Class Ship Open of North pole

Clean nergy

Higher Oil Price

Panama Canal

6.00

8.00

10.00

12.00

14.00M.GT

15.00

20.00

25.00

30.00U$ Bill.

DeliveryInvestment

Delivery for UltraDelivery for Ultra--Large ContainershipLarge Containership

0.00

2.00

4.00

6.00

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

0.00

5.00

10.00

15.00

Source : Clarkson, 8,000 TEU +

Innovation of Ship Construction

Rivet Ship Construction(~1940s)

Welding Ship Construction

Building Dock Ship Construction

On-Land Ship Construction

Ship is build on land, then loaded out on a semi-submersible barge by using air pad and skid.

Rapid Tech. Transfer & Labor Movement

E. Europe

W Europe

N.E Asia

W.Europe

S.E Asia

Tech. Transfer Future Tech. Transfer

Labor Movement