The German shipbuilding industry demands more effective political support in global competition and the »maritime energy transition«. Exclusively for HANSA, the Federal Ministry of Economics and Technology (BMWi) takes a stand on the most pressing issues
Shipbuilding policy & coalition agreement
The Maritime Agenda 2025 will be worked through consistently. One announced measure was the[ds_preview] examination of a classification of surface shipbuilding as a key defence industrial technology. A decision on this will be made with the Cabinet’s decision on the new version of the strategy paper for strengthening the security defence industry. We aim to have the Cabinet discuss this in due course. The classification would increasingly offer the opportunity to retain and further develop maritime knowledge in Germany. This is the prerequisite for remaining competitive as a high-tech location in the long term and thus for maintaining and expanding value and jobs in Germany
Current funding instruments
The BMWi’s maritime funding programmes lead to pioneering technological innovations. The procedures ensure that the funding is used in a targeted and efficient manner. Further simplifications are expected in the course of the further digitalisation of funding procedures. With the programme »Innovative shipbuilding secures competitive jobs«, the Federal Government supports shipyards in the first industrial application of product and process innovations with 25 million € per year. The Federal Government supports shipyards in exporting their ships, in particular with export credit guarantees and the so-called CIRR interest compensation guarantees. Numerous export transactions were and are only made possible by these guarantees. With its export promotion measures the Government always pursues the goal of creating internationally comparable competitive conditions for German shipyards and thus a level playing field. With the state guarantees for shipbuilding, the federal states also provide another important instrument for support in the context of construction phase financing. In 2018, Federal export credit guarantees covered civil shipbuilding transactions with a volume of around 3.2 billion €. Since the introduction of the ship CIRR interest rate equalisation system in 2008, under which the Federal Government gives ship financing banks a fixed interest rate option already at the time the construction contract is concluded, interest rate equalisation guarantees for a total of 147 newbuildings with an order volume of around 28.3 billion € have been positively decided by the end of 2018.
Funding instruments in progress
The BMWi’s Maritime Research Programme addresses, for example, pre-competitive research projects in which future-oriented technologies are developed and tested in concrete application environments. One focus is on environmentally friendly propulsion technologies. The BMWi will provide a total of around 191 million € in funding until 2022 as part of its Maritime Research Strategy. The Federal Ministry of Transport provides further funding for the market activation of LNG as a propulsion technology.
Number of shipyards & foreign takeovers
Germany is one of the most open investment locations in the world, and this should continue to be so in the future. It is our concern that the technology researched and brought to market in Germany is applied internationally. The exports of the maritime industry and its global interdependence secure our maritime location and jobs throughout Germany. The takeovers of shipyards – some of which are financially distressed –by foreign investors also contribute to securing employment and value creation in Germany. The Federal Government, and in particular the Ministry of Economics, is committed to free and fair international trade and competition and to fair and equal conditions for all market participants – also with regard to investments and takeovers.
WTO reform
The BMWi supports the reform and upgrading of the WTO in all its functions. Among other things, within the framework of the so-called trilateral cooperation with the USA and Japan, there is a joint working group on WTO modernisation which meets regularly.
Tendering for public contracts
Germany has a modern and flexible legal framework for public procurement, which was comprehensively reformed in 2016 and made even more user-friendly. Within this framework, modern, efficient and lean procurement is possible. This applies both above and below the EU thresholds. The contracting authorities and companies have a wide scope of action in award procedures. For example, German public procurement law allows the awarding authorities to use the award of contracts to support strategic objectives. These include above all qualitative, social, ecological and innovative aspects. At the end of October, the Federal Government presented the BMWi’s draft bill to simplify and accelerate procurement procedures in the defence and security sector. It also aims in particular at accelerating procedures in the shipbuilding sector. The draft is currently under parliamentary discussion.
A level playing field
The German government aims to establish a level playing field internationally in shipbuilding. To this end, talks are being held with international partners. The Federal Government is committed to a forward-looking policy for German shipbuilding that focuses on research and innovation. It has therefore decided to establish a new DLR Institute of Maritime Energy Systems in addition to the existing maritime funding instruments.
