A flurry of new investment in the ro-ro freight and passenger sector indicates mthat this specialised market is on the up. Markets in the Baltic and the
Mediterranean are performing well this year, with both passenger and freight volumes increasing. Baltic operators such as Tallink and Finnlines, a Grimaldi subsidiary, are reporting growth while heavyweight ferry lines in the Mediterranean including Attica, DFDS and Grimaldi are also looking strong.
The UK’s Chamber of Shipping has an upbeat view. Commenting on the UK’s ferry sector, Anna Ziou, Policy Director (Safety and Environment) says: “As an island nation with many domestic connections and international links, the ferry sector fulfils a vital role in the UK’s transport infrastructure.
“With set routes between established terminals, it is also a sector of shipping that lends itself to new technologies, such as charging points for shipboard energy storage installations and new fuel infrastructure for LNG-powered ferries.”
“At the Chamber, we are watching developments in this sector closely and believe there are a wide range of exciting opportunities to adopt new and more sustainable technologies.”
LR has a specialist group focusing specifically on this area, pointing out that ferries, in the broadest sense, are better placed than most other ship types to adopt new technologies to increase ship productivity. Ropax vessels and passenger ferries operate on established routes and the ports involved are key links in many companies’ supply chains. Yet there are still, universally, many old and inefficient ro-ro and passenger ships in service. The sector is an obvious target for some creative thinking and fresh investment.
Sector in growth mode
According to Peter Iles, a director of STS International, a ferry and short-sea consultancy, the sector is in growth mode for several reasons. One reason is that ferry firms operating in and outside emission control areas (ECAs) are having to reassess their business models due to environmental issues.
For those operators outside of the Europe sulphur emission control area – in the Mediterranean, for example – new fuels will be required from next January, with significant implications for trading economics. However, the economics of fast ferry operation in these seas will not change because these vessels already burn marine gasoil.
Ferry firms running ships in the emissions control area, meanwhile, have to watch the drive for improved fuel economy and in-port performance.
Another reason, Iles says, is an ageing fleet and a significant number of inefficient vessels relative to latest designs. “New ships are substantially more fuel-efficient. Economies of scale and high capital costs mean that owners and operators are looking to reduce fleet size by going for larger and more efficient ships.”
Iles also believes that many ferry owners and operators are expecting rationalisation in the European ferry sectorto continue and may gather pace.
Growth in North Asia
Commenting on North Asia’s ferry sector, Francesco Ruisi, LR’s Passenger Ship Support Centre (PSSC) Manager in North Asia, highlights the growing expansion of ropax vessels in China. “In North Asia, particularly China, the ropax new building market is expanding quite fast with plenty of foreign owners, including DFDS, Viking Line, Grimaldi, Moby Line, Stena, Visby, a nd ENTMV now building their new ships in China.”
“The country is no stranger to building ferries but are regularly built to Asian specifications, rather than European. With reputable yards building up their experience and producing well-built vessels, some production schedules are hindered by high specifications for the European market,” continues Ruisi.
Ruisi points out that some shipyards are seeing ropax construction as the first step to developing capability and experience in the passenger market, so they can enter the cruise ship sector in the future.
Historically, only two European-owned ropax were built in China. Now, ropax construction is booming. The export Chinese orderbook has risen and most of these ships are for export, joining the fleets of Stena Line, DFDS, Gotland, Viking Line, etc. This is testimony to China’s longheld ambition to construct sophisticated designs and great progress has been made on a variety of vessel types.
Over the past 10 years, more than 200 ropax have been built in North Asia (China 105, Japan 90 and South Korea 27), with over 54 in the orderbook (China 36, Japan 15 and South Korea 3).
