Marine
Building BIG Ships Tim Colton Senior Advisor, Shipbuilding February 10, 2006
Contents 1. 2. 3. 4. 5. 6. 7. 8. 9.
The Shipbuilding Industry Building BIG Ships The Shipbuilding Process Engineering, Planning and Procurement Prefabrication Block Assembly Hull Erection Testing and Completion Summary
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Contents 1. 2. 3. 4. 5. 6. 7. 8. 9.
The Shipbuilding Industry Building BIG Ships The Shipbuilding Process Engineering, Planning and Procurement Prefabrication Block Assembly Hull Erection Testing and Completion Summary
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1 – Ship Shipbu buil ildi ding ng Basi Basics cs • • • • • •
There are ~40,000 oceangoing cargo ships in the world fleet. Ships are designed to last 30 years, so ~3.3% of this fleet should be replaced every year. In practice, ships last longer than 30 years and only ~2.0% of the fleet is replaced every year. To keep pace with world trade, the capacity of the cargo fleet needs to grow by ~2.8% a year. In practice, ships get bigger and more efficient, and only ~2.0% of the fleet is added every year. 4% of 40,000 is 1,600 ships a year: the number actually built fluctuates in a 30-year cycle.
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18,000 40,000 24,000 7,500 26,500 C argo N av a l Working
P as s e n g e r Fishing
45 40 35 30 T G 25 n o i l 20 l i m
15 10 5 0 4 6 9 1
8 6 9 1
2 7 9 1
6 7 9 1
0 8 9 1
4 8 9 1
8 8 9 1
2 9 9 1
6 9 9 1
0 0 0 2
4 0 0 2
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1 – The Main Market Sectors LNG Carriers
Tankers
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Bulkers
Containerships
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1 – The Main Market Sectors 100% 90% 80% 70%
All Other
60%
Containerships
50%
Bulkers
40%
Other Tankers
30%
LNG Carriers
20% 10% 0% #
• •
GT
bn$
“All Other” includes car carriers, ferries, reefer ships and multi-purpose cargo ships, which are small compared to the other types but are more valuable on a per-ton basis. LNG carriers are a small sector of the market in terms of # of ships and GT but are much more valuable on a per-ton basis.
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1 – Market Shares 100% 90% 80% 70%
All Other
60%
China
50%
Japan
40%
Korea
30% 20% 10% 0% #
• • •
GT
CGT
DWT
72% of the world cargo fleet (by # of ships) but 90% (by dwt) is built in the Far East. CGTs are “compensated” GTs – i.e., GTs multiplied by a factor that reflects relative complexity. “All Other” is mostly Europe, Brazil and India.
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2 – Building BIG Ships 6,000
•
• • •
There is a noticeable break in ship size distribution that corresponds to the breadth of the Panama Canal. There is a corresponding break in the structure of the shipbuilding industry. The yards that build BIG ships don’t build SMALL ships and vice versa. There are now over 600 yards building commercial vessels, of which over 200 build “Panamax” ships but only 42 build BIG ships.
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5,000
s p i h S f o #
4,000 3,000 2,000 1,000 0 0 2 4 6 8 0 2 4 6 8 0 2 4 6 8 0 2 4 6 8 + 2 2 2 2 2 3 3 3 3 3 4 4 4 4 4 5 5 5 5 5 0 6 Beam (meters)
42
219 352
Big
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Panamax
Small
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2 – The BIG-Ship Shipbuilders Japan (18)
Korea (5)
China (6)
Europe (9)
Other (4)
IHI Marine (2) Imabari (2)
Daewoo
Dalian
Aker – Turku (Finland)
Avondale (U.S.)
Kawasaki Koyo Dockyard
Hanjin
Hudong
Atlantique (France)
NASSCO (U.S.)
Mitsubishi Mitsui
Hyundai
Jiangnan
Fincantieri (Italy) (3)
Newport News (U.S.)
Namura Oshima
Samho
Liaoning
IZAR (Spain)
China SB (Taiwan)
Sanoyas Sasebo
Samsung
Nantong
Meyer Werft (Germany)
Waigaoqiao
Odense (Denmark)
Sumitomo Tsuneishi (2)
Brodosplit (Croatia)
Universal (3)
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2 – The Really BIG Shipbuilders Shipbuilder
Hyundai
Samsung
Revenues (2005)
$16.1 billion
$5.5 billion
$4.8 billion
Net Profit
$188 million
$73 million
$8 million
Backlog
$25 billion
$18 billion
$16 billion
Employees
25,000
12,000
10,000
Subcontractors
10,000
8,000
10,000
Ships/Year
~80
~45
~45
# of Docks/Ways
9
4
5
Biggest Dock
640m x 92m
640m x 98m
529m x 131m
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Daewoo
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2 – Hyundai Heavy Industries
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2 – Daewoo Shipbuilding
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2 – Samsung Heavy Industries
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2 – Current Order Books Hyundai Heavy Industries (Ulsan) Vessel Type 2006 2007 2008 2009 2010 LNG Carriers 2 7 9 2 2 LPG Carriers 4 10 22 1 Tankers 15 17 6 Containerships 51 45 40 Other 3 2 Totals 75 79 79 3 2 Daewoo Shipbuilding & Marine Engineering (Geoje) Vessel Type 2006 2007 2008 2009 2010 LNG Carriers 7 10 13 4 LPG Carriers 5 5 4 2 Tankers 13 10 9 2 Containerships 9 8 8 2 Other 7 7 5 Totals 41 40 39 10 Samsung Heavy Industries (Geoje) Vessel Type 2006 2007 2008 2009 2010 LNG Carriers 7 9 12 6 LPG Carriers Tankers 16 15 13 1 Containerships 19 17 13 1 Other 2 4 2 Totals 44 45 40 8 February 10 2006
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3 – The Shipbuilding Process •
Shipbuilding is an assembly process, involving hundreds of thousands of individually prefabricated parts and items of machinery, equipment and outfit. The secret of efficient shipbuilding lies in how efficiently we can put them all together. Milestone Event 1
Construction Activity
Execute Contract Preparation for production
2
Cut Steel Prefabrication and block assembly
3
Lay Keel Hull erection
4
Float Out Completion and testing
5
Deliver
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3 – Shipbuilding Technology • • •
• •
Computers – allow detailed definition of every part, integrated purchasing, detailed planning and scheduling of every construction activity, resource levelling Precision steel cutting – results in better fit, robotic welding, reduction in rework, improved quality Pre-outfitting – prefabricating outfit material in a shop and fitting it on a hull block in another shop is more than 3x more efficient than fitting it piece by piece on board ship and more than 9x more efficient than fitting it on a ship that is afloat Goliath cranes – building a ship in 900-ton blocks is a lot more efficient than building it in 60-ton blocks Megadocks – building five ships at a time in one dock is a lot more efficient than building one ship in each of five docks
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4 – Preparation for Production • • • •
The biggest difference between shipbuilding today and shipbuilding 30 years ago is that today we spend a much greater proportion of our total effort preparing for production. As a result, modern shipbuilders take much less time to build a single ship: as a result, they produce more ships from a single building position than old-style shipbuilders. For example, a Korean or Japanese shipbuilder can deliver as many as ten big ships a year from a single building position. As a result, modern shipbuilders get a much higher return on their investment in fixed assets and can spread their fixed costs over a much larger volume of business.
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4 – Preparation for Production •
•
•
Design and engineering – two steps: – Functional design is the detailed specification of all structure, material and equipment, meeting all the relevant regulatory requirements – Production engineering is the development of all the detailed drawings, sketches, instructions and other documentation needed by the shipyard to build the ship. Production planning – three steps: – Build strategy: how are we going to build this ship? – Scheduling: when are we going to build it? – Resource allocation: what manpower/facilities do we need? Procurement – three main areas: – Major and long-lead-time machinery and equipment – Commodity materials, such as steel, pipe, cable and paint – Subcontractors
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5 – Prefabrication •
•
Hull Steel: – JIT delivery of plates and structural shapes to a storage area – Blasting and painting with a primer – Cutting, marking, shaping, labeling – Manufacture of two-dimensional subassemblies (panels) Outfit: – JIT delivery of pipe and other material to warehouses – Cutting, marking, shaping, labeling, palletization – JIT delivery to the appropriate work stations for attachment to or installation on hull structure
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5 – Prefabrication of Plates
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5 – Prefabrication of Flat Panels
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5 – Prefabrication of Outfit
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6 – Block Assembly •
•
•
Flat-Panel Blocks: – Three-dimensional assemblies of flat panels – Pre-outfitted: everything that goes into them – piping, vent ducting, cable trays - is installed in the shop – Fully painted except at the butts Curved-Panel Blocks: – Three-dimensional assemblies of both flat and curved panels – involving the complex shape of the hull structure fore and aft and requiring computer-set jigs – The processes are the same as for flat-panel blocks but are much more complex Equipment Modules: – Three-dimensional, self-supporting, self-erecting assemblies of equipment, mounted on foundations or temporary skids – Everything in a module is tested and operational: only the external connections remain
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6 – Flat-Panel Blocks
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6 – Curved-Panel Blocks
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6 – Curved-Panel Blocks
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6 – Equipment Modules
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6 – Grand Blocks •
Blocks may be combined into “grand blocks” that weigh as much as 3,000 tons, especially if they are to be assembled in a floating dock.
GM12
GM11 GB17 GF11 GEC51(C)
GB21
★
GB19
GB15 GB13 GB11 GE12
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6 – Grand Blocks
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7 – Hull Erection • • •
• •
The “big three” Koreans each have at least one “megadock” in which five or six ships can be erected simultaneously: “goliath” cranes span the dock and the area alongside it. As the blocks are set in place and aligned, the butts between them are welded up and the tanks and other internal spaces are inspected and tested. The dock is flooded about once every five or six weeks. Two or three of the ships in the dock are then floated for the first time and their hull integrity is checked. The other two or three, which were floated the last time the dock was flooded, are towed out and moored at a pier. The dock is then pumped dry and erection of two or three more ships is started. In this way, one megadock can produce 20 to 25 ships a year. Single ships are also erected in smaller graving docks, in floating docks, and on land-level facilities.
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7 – Hull Erection in a Dock
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7 – Hull Erection in a Dock
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7 – Hull Erection in a Floater
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7 – Hull Erection on a Slab
•
Erecting a ship on a land-level facility.
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8 – Completion and Testing • • • • • •
Most big ships – tankers, bulkers and containerships – are 90% to 95% complete when floated out of the dock. Final outfitting and system testing is conducted once the ship is afloat and at a pier. Trials are then carried out to confirm each ship’s performance characteristics: a naming ceremony usually precedes delivery. LNG carriers are different: they are only 60% to 65% complete when floated out of the dock, because the cargo containment system cannot be installed until the hull is complete. Final outfitting and system testing of LNG carriers is conducted in parallel with the installation of the cargo containment system. Trials of LNG carriers include rigorous testing of the cargo system with actual LNG, in addition to all the standard procedures.
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8 – Completion and Testing Typical Schedule for LNGCs Preparation for
Fabrication and
Hull
Completion
Production
Block Assembly
Erection
and Testing
Typical Schedule for Other Big Ships Preparation for
Fabrication and
Hull
Completion
Production
Block Assembly
Erection
and Testing
Months 1
• • •
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Most big cargo ships can be built in 16 months or even less, of which actual construction requires only about 10 months. Because of the containment system, an LNGC requires five times the time in the water that is needed for other big ships. As a result, the shipyard needs a lot of expensive pier space.
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8 – A Membrane-Type LNG Tank
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