By Park Si-soo
Staff Reporter
Samsung Heavy Industries (SHI) is eager to promote its cruiser business after receiving a landmark order for two 31,000 ton semi-cruise class vessels from a Sweden-based ferry operator Stena.
The contract is valued at $270 million (253 billion won).
Classified as being one class below cruise vessels, the newly appointed ships will be delivered to Stena in March 2011, navigating between the Netherlands and England.
The ferry will be capable of carrying up to 330 passengers and 250 vehicles and equipped with a variety of amenities including a large restaurant, a shopping mall and a theater.
``This is a symbolic contract in the Korean shipbuilding industry,'' said Kim Yong-soo, an analyst at SK securities. ``With a narrowing gap in technology between Korea and China, the deal paves the way for the Korean shipbuilding industry, pushing it foward.''
Market watchers say it would take less than a decade for Chinese shipbuilders to arm itself with enough technology and know-how to compete with Korean shipbuilders in commercial vessels such as container vessels and bulk carriers.
But it is also not easy for Korean shipbuilders to tap into the value-added vessel market especially that of passenger ships including cruise vessels, where European shipbuilders still control more than 90 percent of the market.
``It is good to see this deal as a stepping stone for the future rather than something great our shipbuilding industry achieved,'' said Jeon Yong-bum, an analyst at Dongbu securities. ``Our industry is still lacking in the ship's body design, interior facilities and cabin, compared to the European competitors. But these are critical capabilities to foray into the value-added vessel market.''
This deal is considered to be a positive signal for Samsung Heavy Industries looking for an opportunity to enter its long-awaited cruise vessel market.
``It proves that Stena recognized our high-end shipbuilding technologies and the quality of our products,'' an SHI official said.
``With the number of the rich in China and India increasing, the number of tourists using cruise vessels are expected to increase by 8 percent annually,'' said Kim Jing-wan, CEO of Samsung Heavy Industries. ``The deal will become a valuable stepping stone toward SHI building more cruise vessels, brightening the future for the Korean shipbuilding industry.''
Adopting high-end technologies, the vessels will reduce fuel consumption by more than 10 percent and run at a noise level of 55dB, lower than the guideline of 60dB set by the International Maritime Organization.
Stena is the largest ferry company in Europe, providing ferry services in 12 routes in Europe.