PEER REVIEW OF THE DUTCH SHIPBUILDING INDUSTRY 2 | PEER REVIEW OF THE DUTCH SHIPBUILDING INDUSTRY FOREWORD This report was prepared under the Council Working Party on Shipbuilding (WP6) peer review process. The opinions expressed and the arguments employed herein do not necessarily reflect the official views of OECD member countries. The report will be made available on the WP6 website: http://www.oecd.org/sti/shipbuilding. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. © OECD 2020; Cover photo: © Royal IHC. You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgment of OECD as source and copyright owner is given. All requests for commercial use and translation rights should be submitted to [email protected]. PEER REVIEW OF THE DUTCH SHIPBUILDING INDUSTRY | 3 Table of Contents 1. Executive summary ........................................................................................................................... 5 2. Peer review of the Dutch maritime industry .................................................................................. 6 3. Global perspective ............................................................................................................................. 7 4. Structure and features of the Dutch maritime industry .............................................................. 10 4.1. The Dutch maritime cluster ........................................................................................................ 10 4.1.1. The Dutch shipbuilding industry ......................................................................................... 13 4.1.2. The Dutch offshore industry ................................................................................................ 21 4.1.3. Marine equipment suppliers ................................................................................................. 22 4.1.4. Competitiveness of the Dutch maritime industry ................................................................ 24 5. Government policies affecting the shipbuilding industry ............................................................ 26 5.1. Government policy ..................................................................................................................... 26 5.1.1. Government structure and enterprise policy ........................................................................ 26 5.1.2. The Dutch Maritime Strategy 2015-2025 ............................................................................ 29 5.1.3. The Dutch Maritime Strategy and the working programme ................................................ 30 5.1.4. Green ships and the blue economy ...................................................................................... 32 5.1.5. Research, development and innovation support .................................................................. 34 5.2. Support measures ....................................................................................................................... 38 5.2.1. Sector-specific support measures ......................................................................................... 40 5.2.2. Generic support measures .................................................................................................... 43 5.2.3. Export and home credits ...................................................................................................... 47 5.2.4. Corporate Finance Guarantee .............................................................................................. 49 5.3. Policy assessment ....................................................................................................................... 50 5.3.1. Assessment of maritime strategy and top sector approach .................................................. 50 5.3.2. Assessment of selected support measures ............................................................................ 51 References ......................................................................................................................................... 57 Tables Table 3.1. Completions of seagoing vessels above 100 GT and GT by ship type in the world and by the Netherlands, 2009-181 ..................................................................................................................... 8 Table 4.1. Main shipyards in the Netherlands ...................................................................................... 16 Table 4.2. New orders of seagoing vessels, 2016-18 ............................................................................ 17 Table 4.3. Order book and new orders of seagoing vessels, 2018 ........................................................ 18 Table 4.4. Received orders of inland shipping, fishing and small seagoing vessels, 2016-18 ............. 18 Table 4.5. Order book, completions and new orders of inland shipping, fishing and small seagoing vessels, 2018 ................................................................................................................................. 18 Table 4.6. Received orders of superyacht construction, 2016-18 ......................................................... 19 Table 4.7. Order book and new orders of superyachts, 2018 ................................................................ 19 Table 4.8. Examples of marine equipment suppliers in the Netherlands .............................................. 23 Table 4.9. Turnover and employment of marine equipment suppliers, 2016-18 .................................. 24 Table 4.10. SWOT analysis of the Dutch shipbuilding industry .......................................................... 25 Table 5.1. Development of the Dutch industrial policy ........................................................................ 28 Table 5.2. Top sectors ........................................................................................................................... 28 4 | PEER REVIEW OF THE DUTCH SHIPBUILDING INDUSTRY Table 5.3. Targets and goals of the enterprise policy ........................................................................... 29 Table 5.4. Members of the TKI Maritime Technology ......................................................................... 36 Table 5.5. Examples of research programmes of the TKI Maritime Technology................................. 36 Table 5.6. Support measures in the Netherlands with relevance for shipbuilding ................................ 38 Figures Figure 3.1. Completions of seagoing vessels above 100 GT and market shares of Europe and the Netherlands, 1999-2018 .................................................................................................................. 7 Figure 3.2. Completions of seagoing dredgers........................................................................................ 9 Figure 4.1. The Dutch maritime cluster ................................................................................................ 10 Figure 4.2. Regional spread of Dutch maritime enterprises .................................................................. 11 Figure 4.3. Valued added per sector of the maritime cluster, direct and indirect, 2017 Million EUR 12 Figure 4.4. Number of employees per sector of the Dutch maritime cluster, 2017 .............................. 12 Figure 4.5. Turnover of the Dutch maritime cluster, 2006-17 .............................................................. 13 Figure 4.6. Completions of seagoing vessels above 100 GT, 2010-18 ................................................. 17 Figure 4.7. Shipyard employment and share of total maritime cluster, 2008-17 .................................. 20 Figure 4.8. Inflow into higher professional education dedicated to the maritime sector, 2013-17 ....... 21 Figure 4.9. Turnover of the Dutch offshore industry, 2006-17 ............................................................. 22 Figure 5.1. Organisation chart of the Ministry of Economic Affairs and Climate Policy .................... 27 Figure 5.2. Dutch research, development and innovation expenses ..................................................... 34 PEER REVIEW OF THE DUTCH SHIPBUILDING INDUSTRY | 5 1. Executive summary The Dutch shipbuilding and marine equipment industries are part of a maritime cluster of about 17 200 Dutch maritime companies that also includes ports, the offshore industry, shipping, dredging, maritime services, fishing, inland shipping, naval activities and the watersports industry. In 2017, the maritime cluster accounted for 3.1% of gross domestic product (GDP) of the Netherlands; its direct and indirect production value was EUR 55.1 billion and its total exports amounted to EUR 25.9 billion. In 2018, the Netherlands was the 17th-largest shipbuilding economy in terms of seagoing vessel completions, with 179 540 compensated gross tonnes (CGT). Ship completions in the Netherlands accounted for 6.7% of ship completions in Europe, making the Netherlands the seventh-largest European seagoing ship producer in CGT. In the 1980s, the Dutch shipbuilding industry started to focus on high-tech, specialised vessels. Large Dutch shipbuilders