Cruise and offshore wind contracts have provided the basis for another strong performance
Damen Shiprepair reports a busy first half of 2024 across all its North European yards, which include facilities in Rotterdam, Amsterdam, Vlissingen, Brest and Dunkerque. Around 550 vessels visited these yards for repair and maintenance work over the first six months of the year, roughly the same as in the same period of 2023.
However, while there was stability in terms of overall business levels, there were some important differences. As Bas Loohuis, commercial director, explains: “We have seen a dip in demand for work to key ocean going vessel types, like bulkers, tankers and container ships. This reflects the fact that Chinese yards are now back in full swing after the pandemic and also the influence of geopolitical factors which are requiring vessels to take longer routes to access European markets. Offsetting that, we have seen more work coming from the offshore sector, and especially offshore wind, and cruise shipping, as well in the naval, yachting and LNG markets.”
Notable projects undertaken so far this year have included major maintenance, including steel renewal to Saipem 7000, a floating crane being used for offshore wind projects, and several cruise vessel docking projects in both Rotterdam and Brest. Loohuis says: “We have handled work for most of the leading cruise brands which have docked vessels typically for two- to three-week stays for maintenance and refit works, with more to come later in the year. This includes a particularly large-scale project for a cruise customer that will be undertaken at our yard in Brest this autumn. This will be one of our first cruise ship sustainability upgrades and will include a package of owner-driven items to reduce emissions and improve fuel performance.”
Damen is also seeing growing interest from the cruise sector in its Damen Air Cavity System (DACS), an air lubrication system designed to reduce resistance and thereby cut fuel consumption. A number of retrofits of this technology have already been carried out at Damen yards on a wide range of vessel types, with further orders in place.
While offering owners a range of sustainability enhancements, also including the application of high technology low friction paints and alternative fuel conversions, backed up by a supportive financial package, Damen Shiprepair is committed to developing ‘green shipyards’, with lower emissions from shiprepair and maintenance operations. The company has installed shore power systems, which allow vessels to dock without running onboard generators, in Amsterdam and Vlissingen, in addition to an existing system in Brest. The plan is to roll out shore power facilities to other yards, as local infrastructure allows. The company is also investing in blasting and painting robots which create a more environment friendly operation for these core activities.
Loohuis says: “We aim to help shipowners achieve greener ships through retrofits and upgrades. But also docking at green yards improves their environmental reporting outputs, which is an important consideration currently.”
Looking ahead to the second half of this year and into 2025, Loohuis is broadly optimistic, with the prospect of particularly strong demand in the fourth quarter of 2024. A greater amount of long-term booking is in evidence, largely as a result of the need for cruise ships to pre-book dock space for upgrades that fit in with their demanding schedules. As a result Damen Shiprepair’s large docks in Rotterdam and Brest are currently booked for six to 12 months ahead.
Loohuis says: “This is a positive development as it allows for better pre-planning. For example, we can make sure we have the labour and the skilled trades we need to carry out a particular job well ahead of time.”
Loohuis also sees continuing opportunities to support offshore wind vessels, superyachts and naval craft. He adds: “Over the past few years the North Europe repair market has been overcrowded with buyers looking for dock space. Now we are seeing a better balance between supply and demand and it is more of a buyers’ market, with consequently greater competition. However, there is still more than enough work to keep yards in North Europe busy, especially with the growing requirement for sustainability upgrades.”
Each of the Damen group’s Northern Europe shiprepair yards tends to specialise in certain vessels types. The Brest yard for example is heavily involved with cruise and LNG related work, while Dunkerque handles ferries, short-sea trading vessels and container ships. This includes container ships for CMA CGM, with a series of environmental upgrades booked in. This will include the installation of bulbs on the bows of vessels, propeller upgrades, modifications to the propeller nozzle and silicone paint applications.
This work will be carried out this year at both Dunkerque and Amsterdam, which is also heavily focused on offshore vessels and relatively complex specialist vessel projects. Meanwhile Vlissingen is busy with yacht and naval work, with its covered drydock proving particularly popular for customers own these segments. The Damen Shiprepair Rotterdam facility handles vessels of almost all types, with customers taking advantage of its proximity to one of the world’s biggest ports.
