Cumulative results of shiprepair yards were positive in 2002. The turnover on repairs rose to 107 million USD (79 in 2001) with the income on conversions at the level of 55 million USD (59 in 2001). The largest Shiprepair Yard "Remontowa" in Gdańsk increased additionally its share in newbuilding of special purpose vessels.

　

 In terms of company's profitability larger yards, with a bigger share of conversion, earned modest profit, smaller were in difficulties. "Remontowa" Yard, fully privatised in 2001, has been a leader in all ranks. In 2002 the Yard executed successfully conversion of a few ferries, two ro-ro's on cable layers and a cargo tanker on shuttle tanker. Among newbuilding there was a remarkable floating unloading unit for coal and other bulks, named Transshipper, destinated to one of the Turkish shore power plant.

　

 The total employment of shiprepair yards accounted to 4.700, slightly above the 2001 level.

　

　

　

 The year 2002 did not confirm the expected world economic recovery, which reflected negatively in most shipping markets: Oil markets and bulk carriers experienced poor developments during the fist three quarters of the year not being enough strong growth in freight rates in the last quarter; Euro strengthened against all currencies and more significantly against the USD (up 18% during the year); new buildings, as well as, second -hand prices showed another year of general decrease. Therefore, the shipbuilding and shiprepair yards that compete at international level suffered from this negative shipping environment.

　

　

 The shipbuilding yards that compete at world level, as it is the case of Vianayard, suffered the suspension of subsidies to shipbuilding, which has been force till December 2001. This factor and especially the continuing fierce (often unfair) competition from Asian yards (China and Korea) has caused a strong retraction by ship owners on placing orders on the yard, in spite of, the large number of inquiries received. Even though, the order book at the end of 2002 was of about 320 million euros, having due regard of an order intake of two patrol vessels during the year. The turnover increased to around 50.8 million euros and employment kept constant at 1,150.

　

 The small size shipyards, very much dependent of the fishing market, increased their activity in 2002, due to the acceleration of fleet replacement which will see the cessation of public support by the end of 2004.

　

　

 Ship repair activity in Portugal is very much dependent of Lisnave results. In 2002, Lisnave, did not loose its market share in relation to the last few years and, in spite of the reduction in demand during the last quarter, was able to meet its objectives in terms of the number of ships repaired, reaching a turnover around 100 million euros, what was not enough to achieve a black figures due to the US dollar sharp devaluation towards the Euro.

　

 Indeed, despite the adverse conditions mentioned above, Lisnave has repaired 145 ships, equivalent to an increase of approximately 7% from 2001. Out of these 145 ships repaired, 134 entered in dry dock, representing an increase of 6% compared with 2001. In a very competitive international market, the ships repaired by Lisnave came from 94 ship owners from 27 different countries.

　

 During 2002, the Lisnave ship repair activity was mainly concentrated in the traditional market segment - wet and solid bulk carriers- these market segments, made up approximately 77% of the ships repaired. The continuity of the activity in other segments, such as passengers ships, liquid gas carriers, refrigerated products carriers, container ships and general cargo ships, among others, should also be noted.

　

 The market segment of conversion and upgrades of ships and platforms for oil fields, remained stagnant during the entire year of 2002. Similarly, the world economy, did not justify the demand for another type of conventional ship conversions: These results in the inability of Lisnave, to secure any order from these market segments during 2002.

　

 Viana yards reduced its repair turnover to about 14% of shipbuilding value, representing a decrease of about 40% relatively to the turnover reached in 2001.

　

 Almost all small shipyards increased their repair activity in 2002, for the same reasons explained for shipbuilding,

　

　

　

 The Romanian economy is continuing to show the positive trend in 2002, the gross domestic production increased with 4.5%, similar to the one in 2001, and the industrial output increased above this figure.

　

 The inflation rate is decreasing constantly, from ab. 30% in 2001, to ab. 18% in 2002. Export increased over all expectations, having the largest value in the last ten years.

　

 In October 2002, has been privatized the last big shipyard, in Constantza, and presently ab. 90% of the shipbuilding industry being privatized.

　

　

 In 2002 Romanian shipyards completed in total 12 ships totalling 108,587 gt or 148,587 cgt which meant and increasing when compared with results of 2001. The orderbook at the end of 2002 consisted of 14 ships (all of which for foreign account) of 100,747 gt or 149,880 cgt. The orderbook significantly decreased when compared to order backlog at the end of the year 2001.

　

 The total workforce engaged in newbuilding yards was about 19,100 at the end of the year 2002.

　

　

 The total turnover in this activity decreased dramatically, being in 2002 only 33 .5 mil. USD, in comparison with 45 mil USD in 2001.

　

　

　

 Economic growth slowed considerably in the first half of 2002, reflecting weaker household spending and sluggish foreign demand. Despite subdued activity, inflation has accelerated and the differential with the euro area remains high. GDP grew 1.8% from 2001 when it was 2.7%, but the country has been able to maintain it's growth over that of the European Union (0.9%) and the OECD (1.5%).

　

 Stronger exports demand should revive domestic activity, lifting GDP growth to 2.5% in 2003 and 3% in 2004, above the euro area average.

　

 Inflation index was 3.1%, and the unemployment rate has risen to above 10.0%.

　

　

 During 2002, the Spanish shipbuilders booked 48 new orders, amounting to 178,366 gt or 264,004 cgt, 28% less than in year 2001.

　

 25 ships with 140,813 gt or 194,374 cgt for foreign owners, and 23 ships with 37,553 gt or 69,630 cgt for domestic owners.

　

 The orderbook at the end of the year 2002 was of 78 ships with 770,452 gt or 782,038 cgt, 5% less than at the end of last year.

　

 52 ships were delivered, with 206,264 gt or 3 01,229 cgt, 6% more than in 2001. Chemical and product carriers , car carriers Ro -ro, LNG, ferries, fishing vessels and other non cargo carrying vessels are the predominant ships in the Spanish order book:

　

 The activity of the naval shipbuilding has been also very high, engaged mainly in the construction of advanced frigates for the Spanish and Norwegian navies.

　

　

 2002 has been much more positive than 2001, the estimated turnover of this sub sector was of 285 m€, maintaining the level of years 97,98 and 99.

　

 All the shipyards have had a good occupation rate both in the Atlantic and Mediterranean areas.

　

　

　

 2002 saw further mixed signals about the state of the economy. However, the year was one of steady reduction of interest rates and concerns about the health of the manufacturing sector. The pound sterling weakened against the euro, which made some contribution to improved industry competitiveness.

　

　

 The merchant newbuilding yards managed to retain market share reasonably well by comparison with the rest of Europe, but the orders won were all in the smaller ship segment of the market. Harland & Wolff failed to secure newbuilding work to follow the two ro-ro vessels being built in partnership with the Flensburger yard, and as a result reduced the work force to a small core dedicated to capturing repair and conversion work in the ship and offshore sectors.

　

　

 2002 was a generally good year for the UK repair and conversion yards, with large and small yards reporting high levels of occupancy. The pattern was not consistent, with the appointment of a receiver to the Malakoff and Moore yard in the Shetlands at the start of 2003. The reasons were said to be difficulty in securing an adequate level of work and additional costs imposed by the Scottish Environmental Protection Agency. During the year, the negative impact of the 2001 collapse of Cammell Laird appears to have been overcome, in particular in that UK yards started to win ship conversion work once more.

　

　

 In 2001 the AWES Working Group on Market and Forecast finalised its new forecast on the requirement for new merchant ships to be build in the period from 2000 to 2015 cf. presentation elsewhere in the AWES Annual Report. The forecast deals with the long term theoretical need for new seagoing merchant ships of 100 gt or more to be built. This should not be confused with the actual demand for new ships as this shows itself by the volume of new orders being placed. The volume of new tonnage being ordered e.g. may include speculative orders which in fact represents ships being ordered ahead of requirement.

　

 In 2002 the group initiated a review on the volume of global shipbuilding capacity. Work on this review is in progress.

　

 Preparation of the 2001-forecast commenced in 2000 following agreement with the Shipbuilders Association of Japan, SAJ, and the Korea Shipbuilders Association, KSA, as to timing of preparations of new forecasts and on increased harmonisation of definitions and basic methodologies etc.. In line with this agreement the forecasting teams of AWES and SAJ in summer 2001 exchanged preliminary forecast results, whereas KSA informed that preliminary results of their forecast was not ready at that time.

　

 In September 2002 a meeting of forecasting experts of AWES, KSA, SAJ and CSERC, The Shipbuilding Economy Research Center of China, was held in Beijing. A main purpose of the meeting was to compare and to discuss methodologies and results of forecasts of requirements for new ships prepared by the respective participants. The meeting furthermore discussed possibilities for further harmonisation of future forecasts as well as other subjects. This was the first time that representatives from The Peoples Republic of China attended a such meeting which is seen as a positive development as it may contribute to increase the common understanding of the shipbuilding market and of developments in the market.

　

 Upon invitation representatives of the AWES Working Group attended two meetings of the OECD Council Working Party No. 6 on Shipbuilding, CWP6, held in April 2002 in Paris. The OECD CWP6 in December 2002 decided to reactivate its SubGroup on Demand and Supply and the AWES Working Group on Market and Forecast upon invitation also attended the meeting of this group in April 2003 in Paris.

　

 It is hoped that through a continued dialogue both directly between the forecasters of the associations and through OECD, an improved understanding can be reached as to the development and nature of the shipbuilding market and thereby contribute to a more healthy and stable development of the global shipbuilding market. Further harmonisation of forecasting methodologies and definitions is seen as a step which can contribute to an improved common understanding.