Standing strong together

2013 has been an eventful year with ups and downs. There were some major orders and innovative projects that put the Netherlands on the map as a maritime nation once more, although, as in all industries, some companies experienced difficult times as the crisis still grips the industry. Luckily, all sectors have seen light at the end of the tunnel. Maritime by Holland Magazine spoke to the Dutch maritime trade associations and network organisations about the developments in 2013 and their hopes and wishes for 2014.

”Some sectors are doing very well like the offshore industry, and also the shipbuilding industry has managed quite well with some significant orders. We notice that sectors that are doing business with foreign markets perform better than the ones that are only involved in the Dutch market. In other sectors the market remains difficult, for example in the inland shipping industry”, analyses Arjen Uytendaal, director of Maritime by Holland, the Dutch maritime network organisation.

The inland shipping industry together with the shipping industry are dealing with an overcapacity, too many vessels are sailing the rivers and seas. Both Tineke Netelenbos, chairwoman of the Royal Association of Dutch Ship Owners KVNR and Robert Kasteel, managing director of the inland shipping trade association CBRB conclude that the decrease in transport on the one hand and the overcapacity in the sector on the other have an impact on their industries. Netelenbos: ”It would be very nice if next year the overcapacity would develop in another direction. This will not be easy; we must note that there are too many ships worldwide. The best solution is to bring the older vessels to the scrapyard instead of selling them to another party.”

A good year

And then there are sectors in which business went well or better than expected. Sander Vergroesen, managing director of the Association of Dutch Suppliers in the Oil and Gas Industry IRO is proud of his industry: ”2013 has been good to us: it has been a dynamic, successful and international year. Worldwide there is a large demand for energy sources and since our members belong to the top 5 of suppliers in the upstream oil and gas industry they play an important role in more and more complex projects around the world. Next to the complete supply chain of oil and gas supply IRO members are key players in the field of offshore wind farm instalment. Innovation and introducing complete new products or services make that Dutch companies stay ahead of international competitors. A great example is the upcoming project for the Dockwise Vanguard, an unique vessel that will remove the Costa Concordia”

The shipbuilding companies can also look back on a year with some of the biggest orders to date. Peter Zoeteman, managing director of Holland Shipbuilding Association explains: ”Although we always could use more orders, companies are positive. Everybody is content  with the orders they have been awarded. Think of the billion deal for IHC Merwede with Subsea 7 and Seabras Sapura, or the order Veth Propulsion has received to deliver 28 contra rotating z-drives to Brazil. Innovation is an important driver, making our adherents do well. We keep innovation high on our agenda and we want to encourage and bring companies together. Next to this, we would like to see improved financing, especially for small and medium-sized enterprises.”

An industry that has done reasonably well in 2013 is dredging. Fries Heinis, chairman of the Dutch Association of Dredging Contractors: ”For the dredging industry the volume of work remains on track. This has everything to do with our effort in the field of safety, coast maintenance and flood protection programmes; three programmes that provide us with a reasonable amount of work. As the sector is doing so well, there are some newcomers from adjacent industries like construction. This leads to greater competition and that is felt by our companies, which reduces their margins. On the other hand the competition will lead to more innovation, because now the companies are keen to distinguish themselves, and that is important. The Netherlands has to become a testing ground again for companies and knowledge institutes. A great example of Dutch innovation is the Sand Engine, part of our Building with Nature Programme. We pour out sand in front of the coast, the tidal currents ensure that the sand washes up the coast and strengthens it.”

Yacht valley

André Vink, managing director of the HISWA, thinks this kind of Dutch innovation should be promoted more outside of the Netherlands: ”We have to bring the Dutch innovative power under the attention of foreign companies. For the yachting industry we therefore organise Holland Pavilions at foreign exhibitions and each year we set up a press tour with a select group of international journalists.”

2013 has been a mixed year for the Dutch leisure and yachting industry, some industries were having trouble managing themselves but the yachts of 24 metres and longer have done well. The Netherlands became number one worldwide as the largest superyacht builder with a turnover of € 936 million. Vink: ”It has not been easy; there has been a lot of competition. The yachting industry needs to enhance their market intelligence: a better presentation and a focus on the unburdening of the yacht owner. To further develop market share, an extensive and collective marketing branding programme has been developed this fall. The effective programme enables 60 members of the HISWA Holland Yachting Group – superyacht shipyards, suppliers, architects and brokers – to increase their export and secure business levels. The collective promotion and position of Holland in combination with the superyacht industry will ensure that the image of the Netherlands is so attractive that buyers want to be associated with the Dutch. We have to make the Netherlands the place to be, the Netherlands have to become yacht valley: all knowledge in one area. Think yachts, think Holland.”

Catching up

The inland shipping industry still deals with the consequences of the crisis, although there is a mixed image per sector: the dry cargo industry struggled in the past year, while passenger transportation and special transports have done relatively well. An important subject for all inland shipping sectors in 2013 has been the environment. “In 2013 there was larger focus on sustain ability in all sectors, but especially in the inland shipping. Greenstream, the first LNG powered inland tanker of Peters Shipyards, became Ship of the Year at the Maritime Awards Gala and the future looks promising with other ship owners wanting to convert their vessels so they can sail on LNG”, notes Uytendaal. Kasteel also sees that the inland shipping industry is catching up: “Especially in the field of NOx and particulate matter emissions. We are working hard to maintain and expand our lead in the area of emissions. We are extremely proud of the Greenstream and her sister ship”.

In 2014 the CBRB wants to focus more on structural reinforcement. Kasteel: ”We as a trade association hold a switching function between the different parties in the inland transportation chain. This applies to the major transport sectors, like dry cargo and container transportation, as well as to the smaller sectors. We believe that our strength lies in this function that we can fulfil. The inland shipping sector has many small entrepreneurs, who have to face major shippers. By improving the structure of the inland shipping we want to ensure that these entrepreneurs stand stronger. This will ultimately lead to better cooperation, increase efficiency and align processes: that is good for everyone, but especially for the individual inland entrepreneur.”

Environmental requirements

”The shipping industry saw a continuation of the crisis since 2008 onwards, although 2013 contained a glimmer ofhope. In some areas more cargo for transportation is offered and prices are going up, which is promising for 2014. We hope that 2013 will be the last year of the crisis for the industry”, predicts Netelenbos. ”Further recovery of the prices depends on consumer behaviour. When more products are bought, like cars, more raw materials will be transported.”

She continues: ”The environmental requirements that have been imposed upon the industry could not have come at a worse time. It cannot be disputed that Dutch ship owners aspire to a clean and economic shipping industry. However, having to invest millions in vessels that are already in lien to the banks is an almost impossible challenge. Take for example the consequences of the 0.1% sulphur limit for maritime fuels, which is due to be introduced in the Baltic Sea, the North Sea and the English Channel on 1 January 2015. This continues to cause lively discussions, both at home and abroad.”

”The KVNR board has decided to apply every effort to achieving aid measures for those ship owners willing to make investments in order to avoid negative consequences,” Netelenbos adds, ”but has come to the conclusion that financial arrangements, both at EU and domestic level, are rare to non-existent. Financial help to ship owners, like an investment fund or financial guarantees by the government are necessary to meet the environmental requirements.”

Assistance and support

Although the offshore industry is doing very well and hopes to continue on the same path next year, the industry is looking at the government for assistance abroad. Vergroesen sees a point for improvement: ”We must continue to connect to the international playing field. In our sector the export provides us with 70% of the sales. Support from the government for export promotion would be very welcome. We would appreciate it if ministers could support our products at international exhibitions or during trade missions. In order to do so, however, the dates of these events must match with the travel agendas of the ministers. Other countries that are active in the offshore industry get a lot of support from their governments think of England for example. Luckily, we already have made good connections with ambassadors in the countries we are active in. The connection we want to make with ministers has to grow: we must provide information about our goals and achievements, and engage in conversations with them.”

Future generations

In July 2013 the Maasvlakte 2 was closed off from the sea, an event that drew a lot of attention from the media and the public. Heinis sees the event as significant for the dredging industry: ”Technically speaking the Maasvlakte 2 is a marvel. It is good that we have a project like this in the Netherlands, too long it only happened abroad. The high PR value of the project is also priceless for the industry: there is a shortcoming of technical personnel and young people will be impressed and enthused with what the media showed them about this project.”

Attracting young talent for education and jobs is very important to all sectors of the maritime industry. Zoeteman: ”Everyone is looking for new people, but has trouble to attract them. There should be more attention for this problem: youngsters who are interested should be stimulated to choose our industry in order to prevent aging and short comings.” The KVNR sees their campaigns are paying off. Netelenbos adds: ”We visit schools, give young people the opportunity to sail along and we give an internship and job placement guarantee. Now we see an increase in the entries for the maritime colleges. That is a very positive development.” Vergroesen sees the same development: ”You can see that students are getting more interested in applying for technical and nautical education. Therefore we should continue to stimulate and attract young people.”

Uytendaal agrees: ”We need more young people in the sector to ensure that we can still do in ten years what we do best today. We want to show to young people how many opportunities the sector has to offer. In 2013 there were already many additional applications, both for the Delft University of Technology as for the marine technical courses in the higher education. For the next two years I am worried about internships, because companies are so busy surviving that they do not always have the time to place and guide interns.” Kasteel spotted the same problem: ”We also want to attract more young people towards the inland shipping industry. To make this possible, we try to make it easier to apply for an internship on board. In addition, we have campaigns to interest young people and are consulting with schools. The inland shipping industry also has an educational centre which addresses these issues.”

Cooperation is key

”The products you can buy right now were already under construction 400 years ago. We kept inventing and developing them throughout the Dutch maritime history. It is important we stay the number one in the field of innovation and sell our products outside the Netherlands. In order to do so, the Dutch maritime industry should be better known in the Netherlands and abroad”, explains Uytendaal. Vink adds: ”We have to bring the Dutch industry in the context of the Netherlands abroad and we need to link our industry to the Dutch art, culture and design. We have to brand Holland.”

”2013 saw us trying to come together as one maritime industry to present ourselves to the general public and to foreign countries.The general public does not know how well the Netherlands is doing in the maritime domain. We want to show them how much work there is, what the innovative power of the industry is and how many jobs are available. I hope this will create a positive attraction to the sector. In 2014 the plans for cooperation will be made more concrete. The Netherlands should, as Maritime by Holland, become a logical choice for foreign companies”, Uytendaal concludes. A point that is supported by Vergroesen: ”The sectors have to cooperate in all areas, supported by Maritime by Holland. The maritime cluster has to stand strong together in order to get things done. Every branch has their own points of attention, but there are many that count for all of us. We have to find each other in this and work together, which will create a form of cooperation that will strengthen us all.”

Anne Kregting