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ASMI News 2005 : 2nd Quarter

Industry News

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Training & Information

Feature


Singapore Marine Industry's Performance in 2004 Overview

Total Turnover

The marine industry turned in a sterling performance in 2004 to breach S$5 billion dollars in revenue. Its total turnover of $5.3 billion in 2004 was a record milestone achievement for the industry. This revenue was a significant increase of 39.8% over the output of S$3.79 billion generated in 2003. The strong results were a clear manifestation of the industry's robustness in a highly competitive global market. All three sectors of the marine industry, that is, ship repair and conversion, shipbuilding and offshore engineering, grew and contributed to the record-breaking performance. The growth in total output was fuelled to a large extent by the boon in the oil and gas exploration industry that resulted in an increased volume of work across the various sectors of the marine industry.

As in past years, revenue from the ship repair and conversion sector formed the lion's share at 59% of the industry's total turnover. Although there were fewer ship calls for repair in 2004 compared to 2003, this had not affected the overall performance of the ship repair and conversion sector, which recorded an increase in output. Revenue from ship repair and conversion work amounted to S$3,106 million in 2004, an increase of 35.5% from the year before.

The shipbuilding sector also saw an increase in output due to the record levels of new contracts secured in 2003 and early 2004. Shipbuilding revenue rose by 22.9% year-on-year to S$890 million in 2004. It constituted 16.8% of the total industry's revenue for 2004. Revenue from the offshore sector grew by a hefty 68.3% in 2004 over the year before. The output of S$1,304 million from the offshore sector accounted for 24.6% of the industry's total output for the year.

Total Employment

The increase in the number of projects and hence, a higher volume of activities during the year resulted in a corresponding rise in the number of workers employed by the industry. The Ministry of Manpower (MOM)'s statistics showed the total employment for the marine industry in 2004 at 37,716 workers. This was 7.83% more than the 34,977 workers employed by the industry in 2003.

Safety Performance

Safety performance in the industry has improved tremendously over the last 13 years with greater safety awareness among workers. There has been a significant fall in the number of accidents in the industry over the last decade. In 2004, the Ministry of Manpower recorded a total of 393 accidents in the marine industry. Although only one fewer than in 2003, this was an improvement of more than 50% as compared with the 829 accidents recorded a decade ago, in 1994.

In terms of Accident Frequency Rate (AFR), the level achieved in 2004 was a new record for the marine industry. The AFR of 3.0 accidents per million man-hours worked registered by the industry in 2004 was an improvement of 11.8% over the AFR of 3.4 accidents per million man-hours worked in 2003. Over the years, the Accident Severity Rate (ASR) has also improved significantly from a high of 2,274 man-days lost per million man-hours worked in 1994 to 454 man-days lost per million man-hours worked in 2003. Unfortunately, due to a major accident in the industry last year, the ASR went up to 830 man-days lost per million man-hours worked in 2004.

Sectoral Performance

Ship Repair & Conversion Sector

The largest contributor to the industry's output is the ship repair and conversion sector. This sector accounted for 58.6% of the industry's total turnover in 2004 with revenue of S$3,106 million. This was 35.5% higher than the S$2,293 million generated by the sector in 2003. The sector's contribution to the industry's total output was 1.9 percentage point lower than its previous share of 60.5% in 2003.

Port statistics from the Maritime and Port Authority of Singapore (MPA) showed a reduction in the number of vessels calling in Singapore for ship repair in 2004. The growth in revenue resulted from the higher sales per vessel in 2004. During the year in review, a total of 6,687 vessels called in Singapore for repairs. This was 1,237 vessels fewer or 15.6% lower than the 7,924 vessel calls recorded in 2003. The total gross tonnage of the vessels that called for repair last year was 39 million grt, down by 9% from the gross tonnage of 42.8 million grt for 2003.

In 2004, the industry undertook a total of eight FPSO (Floating Production Storage and Offloading) and FSO (Floating Storage and Offloading) projects. Seven of these were FPSO/FSO conversions and the remaining one was an upgrading project. Six of the seven FPSO/FSO conversions were completed and delivered in 2004. Work on the conversion and upgrading of another eight FPSO projects are in progress in the various shipyards with deliveries expected in 2005. As at end 2004, Singapore shipyards have undertaken a total of 97 FPSO, FSO and other related projects.

Shipbuilding Sector

The shipbuilding sector posted revenue of S$890 million in 2004. This represented an increase of 22.9% as against the previous year's output of S$724 million. In 2004, shipbuilding activities accounted for 16.8% of the total industry's revenue. This was 2.2% less than the 19% share it contributed to the industry's output in 2003.

A total of 97 vessels totalling a gross tonnage of 149,855 grt were launched in 2004. This was five vessels fewer or 4.9% lower than the 102 vessels launched in 2003. The combined gross tonnage of the vessels launched in 2004 was however, 29.2% higher than the gross tonnage of 116,030 grt in 2003.

Most of the vessels launched in 2004 were workboats, barges and tugs. They constituted almost 57% or 55 of the 97 units launched. Tugs made up the highest number of vessels launched with 28 units. The next highest category of vessels launched was workboats with 17 units, followed by offshore supply/support vessels with 14 units. 13 yachts and ten barges were also launched in 2004.

Offshore Sector

The offshore sector includes the repair, upgrading and conversion of offshore units such as jack-up rigs, semi-submersibles and other platform structures. This sector brought in record revenue of S$1,304 million in 2004. The output was a hefty 68.3% higher than its previous year's turnover of S$775 million.

The sector's share in the industry's total turnover also went up by 4.2 percentage points from 20.4% in 2003 to reach 24.6% in 2004. Projects in progress during the year in review included the construction of several jack-up rigs and semi-submersibles with expected deliveries in 2005 and 2006.

Industry Outlook

The outlook for the marine industry is bright. With the industry's order book at an all-time high, the industry looks set to continue its good performance for the next few years. During the first four months of 2005, the industry has already secured a record level of more than S$4 billion worth of contracts with expected deliveries till 2008. The order book is likely to increase further as the local shipyards continue to clinch more contracts amid a strong oil and gas industry.

Singapore has strengthened its global leadership position in the jack-up rig building market with about 80% of the world's market share. The market for FPSO conversions and the building of offshore support vessels, two niche areas for the industry, remain buoyant. Industry members have during the last few years, increased the market share for ship repair in the more specialised and sophisticated market segment, in particular, that of LNG carriers. Singapore is fast becoming the leading LNG ship repair centre with local shipyards winning long-term contracts.

Against the backdrop of an intensifying level of competition from China and Middle East, the industry must continue to focus on its core competencies and leverage on its strategic and competitive advantages. The industry will have to ensure that projects continue to be executed safely, within budget and on schedule. Industry members will have to continue to invest in R&D efforts to further strengthen and broaden their product and service capabilities. To stay ahead, the industry must be knowledge-intensive and technology-driven. Recent contracts secured have shown that the capabilities of the industry to offer its own designs and engineering solutions as well as to fit customers' specific requirements into the designs are winning strategies.

On the home front, efforts to improve the image of the industry and to create greater awareness on the industry among the younger Singaporeans have achieved some results with more local students enrolling for marine and offshore courses in tertiary institutions. The industry must continue to attract more promising locals to join the marine workforce and industry members would have to work even closer together for its next phase of growth.

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Marine Learning Carnival for Schools

The inaugural Marine Learning Carnival (MLC) held on 26 May 2005 for secondary school students was a resounding success in achieving its aims of generating more awareness and interest in the marine industry. Some 500 students and teachers from 29 secondary schools attended the carnival held at the Convention Centre of Ngee Ann Polytechnic. The event was jointly organised by ASMI, the Marine Group Local Industry Upgrading Programme (LIUP) and Ngee Ann Polytechnic (NP), and supported by the Economic Development Board.

The one-day carnival was organised as an outreach initiative under the Association's Image Enhancement Campaign. The secondary school students, who are potential entrants into the marine industry, have been identified as one of the key target groups for ASMI's industry promotion and image enhancement exercise.

Central to the carnival were two inter-school competitions - the Amphibian Challenge and Marine Quiz. More than S$12,000 in cash prizes and trophies were given out to both winning teams and their schools of the two competitions. A career guidance presentation incorporating a briefing and an exhibition showcasing the capabilities of the world-class industry and its career challenges was also staged.

The convention centre was decked with clusters of gold, silver and blue balloons. Adding to the carnival-like atmosphere at the foyer were snack stalls giving away free popcorn, kachang puteh and candy. Lunch was also provided for the students and teachers at the carnival. To add to the excitement of the carnival, ten Creative MuVo MP3 players were given away to students as lucky draw prizes.

The Guest-of-Honour (GOH) for the event was Mr Chan Soo Sen, the Minister of State (Education). Mr Chan, who arrived at 2:15 pm for the finale of the carnival, toured the exhibition and the games areas. He also viewed the display of amphibious model boats created by the students. A tea reception was arranged for industry personnel to interact with the Minister. The GOH also delivered a speech after watching the exciting quiz finals live on stage. The Minister also presented the prizes to the winning teams of the two competitions at the prize presentation ceremony at the end of the carnival.

The Amphibian Challenge

In the Amphibian Challenge, participating teams were required to design and build an amphibious model boat capable of travelling on land and in water, with the materials provided by the organisers. Teams were required to bring along their creation to compete in a boat race on the event day to vie for the 'Fastest Amphibious Vessel Award' as well as the 'Most Innovative Vessel Award'. The competition attracted a total of 62 teams from 27 Secondary Schools.

In designing and building their craft, the students learnt about the fundamentals in the principles and design of floating vessels. Teamwork, creativity and innovation were also encouraged though the competition. A total of ten awards were presented including a Special Commendation Award. The Y-team from St Gabriel's Secondary snatched the Gold Award for 'Fastest Amphibious Vessel: Swift-Amphib from Hillgrove Secondary created the 'Most Innovative Vessel', which also won the Silver Award in the boat race.

Marine Quiz

The Marine Quiz drew a total of 24 teams from ten secondary schools. The quiz in MCQ format focused on the history, strengths and milestones of the Singapore marine industry, ASMI and ships in general. The teams competed in three knockout rounds - Preliminary, Semi-Final and Final rounds. Eight teams advanced into the tension-filled semi-finals to vie for a place in the finals. Two teams from Anglo-Chinese School (Independent) and the team from Clementi Town Secondary School subsequently made it to the final three.

The quiz finals was conducted 'live' on stage in front of an audience of 500 comprising the GOH, industry personnel, lecturers and teachers, polytechnic and secondary students as well as invited guests from several government organisations. The atmosphere onstage was indeed nerve-racking for the teams as they battled point for point with one another as the teams went through the compulsory, open and speed rounds. The audience watched in anticipation, cheering in admiration with each correct answer, and sharing the team's frustration and dismay with each wrong answer given. Team 1 from Anglo-Chinese School eventually edged out fellow schoolmates from Team 2 to emerge as the Champion for the quiz. Clementi Town Secondary was placed in second runner-up position.

Marine Exhibition and Career Guidance Presentation

Panels of posters showing the nature of the marine business including its history, transformation, global leadership positions and strengths, were put up at the foyer of the convention centre. The types of careers in the industry, the career progression path and career opportunities including successful stories on the achievements of a number of young professionals and outstanding individuals in the industry were also highlighted at the exhibition. On display were several 3-D models of ships and offshore rigs built in Singapore. Students from a few schools also attended a career guidance presentation on the overview of the Singapore Marine Industry and relevant diploma courses conducted by Ngee Ann Polytechnic.

Marine Games

Several games were also conducted to engage the students and impart general knowledge on the marine industry. One of the most popular games was a large-scale electronic chain & ladder board game. Students also formed teams of their own to participate in the jigsaw contest. The large jigsaw puzzles showed the aerial views of some of the major Singapore shipyards. Other games conducted to introduce the world of Marine to the students were word search and crossword puzzles. Through these games, which also focussed on ships, ship types and parts, participants were introduced subtly to the industry.

The Amphibian Challenge - Results
Award Total
Cash Prizes
Team School
Fastest Amphibian Vessels Award
Gold Award

$2,000

Y-Team St Gabriel's Secondary School
Silver Award

$1,600

Swift-Amphib Hillgrove Secondary School
Bronze Award

$1,200

Team 1 Clementi Town Secondary School
Merit Award

$600

Team 2 Anglo-Chinese School (Independent)
Merit Award

$600

Team 3 Gan Eng Seng Secondary School
Merit Award

$600

Team 1 Outram Secondary School
Merit Award

$600

Conqueror Sembawang Secondary School
Merit Award

$600

X-Team St Gabriel Secondary School
Most Innovative Vessel
Most Innovative Vessel

$600

Swift-Amphib Hillgrove Secondary School
Special Commendation

$200

Team 2 Clementi Town Secondary School
Marine Quiz - Results
Champion

$900

Team 1 Anglo Chinese School (Independent)
First Runner-Up

$700

Team 2 Anglo-Chinese School (Independent)
Second Runner-Up

$500

Team 1 Clementi Town Secondary School
Merit Award

$150

Team 1 Gan Eng Seng Secondary School
Merit Award

$150

Team 2 Gan Eng Seng Secondary School
Merit Award

$150

Avalanche Sembawang Secondary School
Merit Award

$150

Team 2 Victoria School
Merit Award

$150

VS Marhes Victoria School

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