Christophe TytgatSecretary
General
SEA
Europe (Shipyards’ & Maritime Equipment Association)
Belgium
With the incoming European Commission, SEA Europe will continue advocating for this strategy as a basis for strong industrial policies and regulations that support Europe’s leadership in complex shipbuilding, whilst helping the industry to regain strategic shipbuilding markets, and pursue new business opportunities.
Turning the tide in a fast changing geo-political climate
European shipping currently controls 40% of the global fleet but orders 90% of its ships from Asia. However, in a geo-political climate of increased political tensions, military threats and less reliable trading partners, the EU’s heavy dependency on Asian shipbuilding has become an economic and security risk – thus a non-negligible vulnerability – that must be derisked in line with the European Commission’s policies on "strategic autonomy", "economic security," or “resilience”.
Similar to other strategic sectors, the incoming European Commission must establish a sectoral maritime industrial strategy. This strategy should facilitate the formation of a Maritime Industrial Alliance and a European Ships’ Act, aiming to mitigate vulnerabilities and dependencies on foreign countries by bolstering Europe’s shipbuilding industrial capacity, while sustaining its current global leadership in complex shipbuilding and advanced maritime equipment production. The sustainable and digital transitions of waterborne transport and the Blue Economy present significant opportunities to surpass Europe’s international competitors in quality, efficiency, and safety, reclaim strategic ship types for Europe’s Blue Economy, and penetrate new markets, such as offshore renewable energy.
The work ahead: A maritime industrial strategy that fits with the new political priorities
Prior to introducing a Ships’ Act and Maritime Industrial Alliance, the European Commission must urgently implement a maritime industrial strategy, as requested by the Competitiveness Council. In SEA Europe’s opinion, this strategy must be founded on four essential pillars:
- Industrial sovereignty and competitiveness: European shipyards must regain orders from shipowners, especially in strategic sectors like cabotage, shortsea shipping, and offshore renewable energy.
- Supportive regulatory framework: The European Green Deal and Net Zero Industry Act have provided opportunities but failed to establish a framework for making the business case for competitive, sustainable shipping and shipbuilding in Europe.
- Technological leadership: The EU must boost R&D and innovation, and scale up sustainable and digital technologies. Programs like Horizon Europe should continue, whilst new partnerships should be established.
- Skilled workforce: European shipyards must retain, re/upskill and recruit workforce, whilst facing competition from other industries and a fast retiring workforce.
Under favourable framework conditions, European shipyards and maritime equipment manufacturers— known as the maritime technology industry— can produce 10,000 sustainable and digitalized vessels by 2035, invest over €10 billion in highly efficient, automated, and sustainable production facilities, and recruit as well as re/upskill 500,000 qualified workers. This ambitious vision aligns seamlessly with the new political priorities of Commission President von der Leyen for a Clean Industrial Deal, Defence, and the EU Oceans Pact.
Inaction is no longer an option; otherwise, not only is the EU's standing as a maritime power at risk, but also the maritime industry’s credentials are jeopardized, including global leadership in innovative and complex products, €128 billion of annual production value, and 1.1 million highly skilled jobs.