Rule in the way of 750 million revenue

Rule in the way of 750 million revenue

23-01-2018 14:00:00

Danske shipyards and suppliers have taken a loss in revenues of an estimated 750 million Danish kroner. This is a result of the government’s special rule, that a shipyard is not allowed to bid, if it has not built a ship of the same type within ten years. Danske Maritime have reported.

"This case has bureaucracy, jurisprudence and disclaimer written all over it, rather than a sincere wish of getting the best ships at the best prices. It should be the competences that matter, not if you have built a ship of the same type, "says Jenny N. Braat, CEO in Danske Maritime.

The cut in orders will cost the maritime community an estimated 300 millions Danish kroner in lost tax revenues and 700-1000 one-year fulltime jobs.

In an order of building three new rescue vessels, with a total value of estimated 140 million Danish kroner, to the west coast of Jutland, Wille Mathis Boatyard in Aalborg wanted to bid on the contract. But even though the shipyards were the manufactures of the existing rescue boats, they are not allowed to place an offer. The rescue boats are from 2002 and thus the yards experience is five years too old for the ten-year rule.

"Once again, it is the rule of having to have built similar ships within the last ten years, which causes more Danish yards not to place offers at all. With costs of up to 100,000 Danish kroner just to submit an offer, it is unfortunately understandable the smaller ship yard does not wish to compete, when they are met with barriers like the one that was set up and therefore feel condemned in advance," says Jenny N. Brat.

The government introduced the new procurement practices a few years ago and its effects can be seen now more than ever. By 2017, all of exept for one of the government’s newbuildings have moved abroad. See the fact box below.

Source: Danske Maritime / Maritime Denmark

With the expeption of one ship, all newly build Danish ships of 2017 were shipped abroad. The list of ships the Danish goverment has odered in 2017:

- The danish Defence sign a contract for the construction of four patrol and platform supply vessels for the Sirius Patrol at the Finnish shipyard Weldmec Marina.

- In 2017, the Danish Defense send orders for the construction of 18 small environmental vessels to the Finnish shipyard Lamor Corporation.

- In 2017, DanPilot, an independent public company under the Ministry of Business, signs a contract for the building of 11 pilot boats at the Estonian shipyard Baltic Workboats AS.

- The Danish Defense chooses the Danish Tuco Marine Group in Faaborg to build two small surveillance vessels for the value of 7.5 million Danish kroner per. vessel.

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