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CREATING A CONDUCIVE ENVIRONMENT INCLUDING FUNDING,

INFRASTRUCTURE, MARINE SPATIAL PLANNING, INTERDEPARTMENTAL COLLABORATION AND REQUISITE SKILLS TO


SUPPORT A SHIPBUILDING ENTERPRISE

THE FINNISH WAY


Sauli Ahvenjrvi,
Port Elizabeth, 27 September 2016

CV
MSc and PhD at Tampere University of Technology

Thesis on the safety of integrated navigation systems

Software engineer at ABB Strmberg ship automation


Head designer of DP systems in Hollming Shipyard
Electronics superintendent at Silja Line
Failure analysis of navigation system of cruise ships
(RCCL Freedom class and Oasis class)
25 years' experience of educating seafarers at SAMK
Member of the Parliament of Finland in 2011-2015

SATAKUNTA UNIVERSITY
OF APPLIED SCIENCES
(SAMK)
Education of seafarers for 135 years
Bachelor's degree program in Maritime
Management (deck officers)
Bachelor's degree program in Marine engineering
(engine officers)
Master's degree program in Maritime Technology
In English language from 2017 open for
intenational students!

BEGINNING OF THE
FINNISH SHIPBUILDING
The Finnish shipbuilding industry got a major boost
after the WWII:

535 ships were exported in 8


years
unfortunately the price was...

... 0 $
Finland had to pay to the Soviet Union war
reparations over one half of the annual budget of the
Finnish state (population of Finland was 4 million)

... including 728 locomotives etc.

ONE OF THE 535 ON THE


SHIPYARD IN RAUMA

WHAT IS NEEDED FOR


SHIPBUILDING BUSINESS

Market
Products - strategy
Competitiveness
Infrastructure
Know-how
Labour
Financing

JAPAN, SOUTH KOREA


AND CHINA HAVE 93%
SHARE OF THE WORLDS
SHIPBUILDING MARKET
(calculated in tonnage, not in value)
The strategy for the Finnish shipbuilding industry to
survive is ...

SPECIALIZATION

Ice breakers
Research vessels
Cruise ships
Passenger ferries
Other kinds of special ships

No bulk ships built in


Finland since 1980s

SHIPBUILDING IS LIKE
A ROLLER COASTER
Today
Four years ago
Eight years ago
Twenty years ago
Thirty years ago

HOW TO SURVIVE
OVER THE BAD TIMES?
Shipbuilding is done in a network of companies, only 20% by the
shipyard itself
Key subcontractors have more than one supporting leg or they
operate internationally

Some companies have grown global market leaders on their product segment

Shipyards must be flexible, able to adapt


Well-timed orders by the government: navy ships, coast guard ships,
ferries, ice breakers, research ships etc.
Unemployment support for individuals - stay available
Special aid from the government for home towns of shipyards to cope
with sudden loss of tax income
Dry seasons shall not be too long...
Ownership of the Finnish shipyards has changed many times

COLLABORATION ON THE
GOVERNMENT LEVEL
Collaboration is necessary between ministries dealing with
maritime affairs
Education - research and education policy
Transportation orders, infrastructure
Economic affairs and employment - support for development
and innovation, loans, guarantees, labour market
Environment - orders
Defence - orders
Finance - taxation policy, ownership, financing
Foreign affairs marketing support,

Should the maritime affairs be coordinated by one ministry?

POLITICIANS
Politicians on alla levels must be informed about the value and the
needs of the shipbuilding industry
e.g. The Finnish Marine Industries association, the Maritime
Group of the Finnish Parliament

Sometimes very much depends on the decisions of politicians,


what is important for the city or for the country?
Two recent examples:
City of Rauma decided to buy the infrastructure of the closed
STX shipyard => RMC was established, shipbuilding in
Rauma survived
State of Finland decided to become the owner of the shipyard
in Turku (together with Meyer Werft) => Meyer Turku was
established, shipbuilding in Turku survived

CONCLUSION
The Finnish way to create an environment to support a
shipbuilding enterprise:

Know the market and build on your strengths, specialize


Support building a robust and effective structure for production
Have mechanisms for surviving over the dry seasons
Build knowledge and relations for collaboration on the highest
level

Difficulties make us stronger.

FINNISH SHIPBUILDING IS
COOL (-20 DEG C)