|Subject||Shipbuilding Boom, Engine Making Bonanza
|Writer||Lee Min Jung
Monday, 16 October 2006
<br />THE world's shipyards will spend about US$9.2bn on marine propulsion systems in 2006 and this is set to rise<br> through to 2008, according to the latest edition of The World Marine Propulsion Report 2006-2010, just published<br> by UK-based analyst Douglas-Westwood using vessel data from Lloyd's Register.
<br />But the market will cool off from 2009-10 when Douglas-Westwood expects a return to more 'normal' activity levels,<br> as the new tonnage filters through and is absorbed by the market. Over the period 2006 to 2010, US$47.2bn is<br> likely to be spent compared with US$26.9bn over the previous five year period - an increase of 76%.
<br />In 2006 alone, engines are likely to be installed with a total power output of 24.5 GW. According to the study<br> analyst Georgie MacFarlan, "this is the equivalent to the total capacity of 20 nuclear power stations.
<br />Douglas-Westwood says: “The high power requirement for container vessels means that this vessel sector will <br>continue to require the greatest amount of main engine power. This will be followed by tankers and bulk/general<br> cargo vessels. The sector with the strongest growth will be the LNG vessels, but tankers and containers will also<br> show strong growth. Passenger/cruise will show a small overall decline with the fishing sector's decline being<br> more pronounced.”
<br />It adds: “LNG vessels are a special sector and this fleet will grow considerably as the LNG business continues to <br>expand and the values of engines and propulsion systems will grow by more than 125%.”