There was no change in the 2001 orderbook for the year 2002.

　

　

 The turnover is lower compared to 2001. The concurrence from low wage countries is affecting the industry. There is also a drop in number of enquiries. The turnover figures for repairs in 2002:

　

　

　

 The Government is confirming and strengthening its policy based on the reduction of fiscal drag, the introduction of a more flexible labour system and the restructuring of welfare, in line with the decisions adopted by the European Councils in Lisbon and Barcelona.

　

 The macroeconomic world - wide scenario unfortunately is not meeting the recovery which was expected. In such situation, the country is having a contraction of internal demand and a growth rate lower than GNP expectations. The re - launching of public investments in infrastructures, transports and Southern Italy should however further reduce unemployment (9 in 2002; the forecast for 2003 is 8.5%).

　

　

 Shipbuilding data for the year 2002 are the following:

　

　

　

 The decrease reported in the year 2002 in terms of enquiries and awarded repair works was considerable and it was due to the more and more aggressive competition from the East Med and Black Sea yards (Turkey).

　

 The only contract signed during the year is the one awarded to the Palermo yard for the refurbishment of four ships.

　

　

　

 The Dutch shipbuilding industry strengthened its European position in 2002 while consolidating its global position. It was the presence of a comprehensive high-quality maritime infrastructure in combination with the sector's innovative power, further development of niche markets and highly proactive market approach, which helped achieve this.

　

 Innovation and exports are the two mainstays of the Dutch maritime manufacturing industry. Owing to the close interconnectedness of prominent players in the maritime cluster, the Netherlands is shown to "have the edge" in many areas at European level. In view of the innovation requirement of the Dutch shipbuilding industry, three strategic fields can be identified that are relevant to a healthy and future oriented maritime sector: life cycle approach, new vessel concepts, and safety and the environment. A number of projects are being implemented in this context including:

　

　

　

 The order book was preserved at the level of previous years, with an order intake in the amount of € 1.0bn. The global market share was also preserved, at 2.1%, whereas the export share increased from 47% to 55%.

　

 A total of 106 vessels were commissioned in 2002, to a total tonnage of468,000 CGT. As for the complexity of the commissioned vessels, the Netherlands still leads the world, as shown by the CGT coefficient comparison: World, 0.63; Europe, 1.05; Netherlands, 1.67.

　

　

 Turnover in repair of seagoing vessels turned out level compared with 2001, at € 275m. All in all 2002 was a challenging year, with conditions continually varying between shipyards. Although a greater number of vessels were taken in for repairs, the quantity of work per vessel was notably smaller. The number of employees showed a (slight) decline to 1,625 as at year-end 2002 (2001: 1,650).

　

　

 VNSI members won construction contracts for 95 non-seagoing vessels in 2002 to a

total value of over € 252m, of which 61 vessels were earmarked for export (€ 118m). By way of comparison, 98 vessels were booked in 2001 to a total value of € 277m of which 50 for foreign clients (€ 156m).

　

 Developments can be broken down per constituent sector as follows:

　

 This category straddles a broad range of non-cargo vessels such as (pusher) tugs, work pontoons, patrol vessels, research vessels and fire extinguishing boats. The various shipyards won contracts for 34 non-seagoing operational vessels to a total value of € 45m, with 34 vessels being commissioned during the year. 50 contracts for seagoing non-cargo vessels with a tonnage in excess of 100 gross tons were won with an aggregate price tag of € 451m, with 29 such vessels being commissioned. These data have been taken to the annual figures for shipbuilding.

　

 VNSI members won 11 construction contacts for various types of passenger vessels (river cruise boats, canal boats and ferries) to an aggregate value of approximately € 61m. A total of 16 passenger vessels were commissioned during the year under review.

　

 Due to the rather convoluted (trading) structure of the inland shipping newbuilding market - which comprises inter alia dry cargo vessels, container ships, tank vessels and barges - we regret that we are unable to present a reliable overview of newly won contracts in this segment. The total number of cargo vessels commissioned by VNSI members and non-members together is estimated at 58, virtually all of them intended for the Dutch market, to a total estimated value of € 147m.

　

 The repair inland shipping yards enjoyed a fair to good order supply in 2002.

　

 The fishery shipyards won a total of 11 contracts for new-build vessels in 2002 representing approximately € 32m, of which three vessels were ordered by foreign clients. A total of 15 fishing vessels were commissioned during the year. All orders and commissioned vessels were seagoing vessels in excess of 100 gross tons, which is the basis on which the relevant data have been taken to the annual figures for shipbuilding.

　

 A total of 21 contracts were won for non-seagoing dredgers (mainly suction dredgers) to a total value of some € 45m, with just the one dredger being ordered by a domestic client. The other dredgers for which contracts were won during the year (all of them trailing suction hopper dredgers) have been accounted for as part of the figures for shipbuilding.

　

　

　

 In 2002 the Norwegian shipyards delivered in total 77 ships of 278,934 GT (558,599 CGT). This is an increase of 13 ships from the year before. 22 ships of 79,260 GT (157,368 CGT) were for foreign account.

　

 Norwegian shipbuilders booked 28 new orders, amounting to 46,209 GT or 144,623 CGT, 45% less than in year 2001.

　

 The order book at the end of 2002 consists of 76 ships totalling 354,071 GT (663,200 CGT). 33 ships of 139,337 GT (280,445 CGT) were for foreign account.

　

 In addition to the difficult order situation for the European shipbuilding, the Norwegian shipbuilding industry is also facing a strong Norwegian currency, the high level of interest rates and costs. The subsidy of 9% abolished Norway as in the other European countries in 2001 . Following the disappearance of subsidies, the number of new shipyard orders for 2003 and 2004 so far reflects that situation.

　

Approx. 5,500 persons are employed directly in the shipyards.

　

　

 The level of activity for ship repairing in Norway continued as the year before. About 1,000 persons are engaged in this activity, and the total turnover for 2002 was nearly the same as the year before, about USD 115 million.

　

　

　

 Basic trends were stagnant in Polish economy during the year 2002. Gross Domestic Product recorded small increase of 1,3%, which is a little above the previous year (1,1%) heavily influencing employment market. The GDP increase was driven mainly by growing export as domestic investment remained at very low level. Unemployment rate rose from 17,4% at the end of 2001 to 18,1% in December 2002 and 18,7% January 2003. This was a combined result of employment decrease in industrial and service sectors and big inflow of young people newly entering employment market. Inflation was drastically limited to 1,9% from 5,5% in 2001 and 10% in 2000. In spite of substantial decrease of National Bank rates commercial credits remained very expensive and difficult to attain.

　

 Polish national currency - zloty (PLN) - hold strong exchange rates against USD and EUR comparing with those of the year 2000.

　

 For the year 2003 some improvement in country's economy is expected, especially increase of GDP by 3÷3,5% and restrain of unemployment increase. But as the international political and military tension grows and domestic political stability weakens there is a big margin of uncertainty.

　

　

 The year 2002 was extremely difficult for Polish shipbuilding. At the beginning of March Szczecin Shipyard had stopped its production activity as a result of the loss of financial liquidity and withdrawal of banks from operational and investment financing. In their appraisal losses generated by the Shipyard , caused both by world and domestic market factors and internal managerial problems. were hardly to overcome. After four months of rescue attempts Szczecin Shipyard and its holding structure Porta Holding went bankrupt. In the meantime state owned Industry Development Agency (ARP) bought one of the holding' s daughter companies and created on its basis New Szczecin Shipyard (SNN). SSN backed by ARP guarantees restarted shipbuilding on shipyard' s facilities lent from the receiver.

　

 Bankruptcy of Szczecin Shipyard worsened the credibility of whole shipbuilding sector. Gdynia Shipyard, the biggest borrower, has been affected in highest degree. To avoid Szczecin case risk all due credits were paid off but shortage of financing resulted in increasing delays in repayment Shipyard's subcontractors and suppliers.. At the end of the year shipyards of Gdynia Group (Gdynia and Gdańsk) had to slow down its operational activity. The Group accounted financial loses for the year 2002.

 The fall of Szczecin and debts of Gdynia - Gdańsk Shipyards hardly hit the majority of its suppliers, spreading financial difficulties over a number of companies.

　

 In spite of this, production outcome of shipbuilding in Poland in 2002 was relatively positive. Shipyards completed in total 30 ships, all of them for foreign account, totalling 497.562 CGT, of a value of 714 million USD, which meant slight increase when compared with results of 2001. The majority of ships completed were container carriers, followed by car carriers, general cargos, ro-ro vessels, chemical carriers, ferries and special purpose non-cargo vessels.

　

 The order book accounted for substantial loses caused by cancellation of contracts of the bankrupt Szczecin Yard. At the and of 2002 it consisted of 51 ships (all for foreign account) of 1.232.029 CGT and a value of 1.844 million USD. The order book had diminished over the year 2002 by 36% in terms of CGT and 35% in value. It is significant that New Szczecin Shipyard at the end of 2002 signed a contract for 6 chemical carriers. The prototype of those ships has been commenced in 2001 and caused a lot of technological problems. Signing of the said contract indicates permanent trust of ship owners over Szczecin Yard capabilities and means overcoming of the prototype difficulties. Ordered chemical carriers have cargo tanks of duplex steel and are largest in their class.

　

 At the end of 2002 total workforce engaged in new building yards diminished by 3.500 when compared with previous years and accounted to 15.500 employees. Bankruptcy of Szczecin Yard left 6.000 people out of the job but majority of them has been reemployed by the New Shipyard.