focus focus focus. from past to present a bc shipbuilder’s perspective malcolm mclaren presented...
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FOCUS FOCUS FOCUS
FROM PAST TO PRESENTFROM PAST TO PRESENTA BC SHIPBUILDER’S PERSPECTIVEA BC SHIPBUILDER’S PERSPECTIVE
Malcolm McLarenMalcolm McLaren
Presented ByPresented By
President
Allied Shipbuilders Ltd.November 2009
God & Shipbuilder We AdoreGod & Shipbuilder We AdoreIn Times of Danger, Not BeforeIn Times of Danger, Not Before
When War Is Over, All Things RightedWhen War Is Over, All Things RightedGod Is Forgotten, The Shipbuilder SlightedGod Is Forgotten, The Shipbuilder Slighted
...with apologies to Kipling ...with apologies to Kipling
Launch of 10,000 Ton Victory (Liberty) Ship
West Coast Shipbuilders, Vancouver – Future Site of 2010 Winter Olympics
Fort Chilcotin in English Bay - June 1942The first WWII ship built by West Coast Shipbuilders (Hull #101)
was launched March 7, 1942 and was a casualty of war having been sunk on July 24, 1943
Rayonier No. 1 fully loaded
Rayonier No. 1 leaps as it dumps its load
Allied Shipbuilders Site – 1969
North Shore of Vancouver Harbour
Launching the rail car barge Haida Transporter - April 27, 1968
The 75-foot drum seiner Katrena Leslie (Hull # 214)underway in fog in English Bay
Ships for Offshore OilShips for Offshore OilThe West Coast & ArcticThe West Coast & Arctic
- Past- Past
- Is there a future for Canadians?- Is there a future for Canadians?
The drill rig Sedco 135Fwas built by Victoria Machinery Depot
The Lady Alexandra at sea - 1974
Do governments have a role in making sure these opportunities are available to Canadians?
OFFSHORE OIL & GASOFFSHORE OIL & GAS
Canada's Revolutionary Icebreakers Canada's Revolutionary Icebreakers Lead the WorldLead the World
1975 - 19851975 - 1985
1970 to1980 – Arctic Oil Exploration
Good for Shipbuilding & Ship Repair
Major Damage to
- Hull
- Rudders & Stocks
- Propellers
Arctic Nutsukpok in the Beaufort Sea, bound for Tuk
ALLIED HULL 235
The Kigoriak was the first icebreakerto operate year-round in the North American arctic
Ships Few & Far BetweenShips Few & Far Between(1990 - 2009)(1990 - 2009)
470 Car Ferry Construction In Steel - 1993
Simple / Effective
Chuck KoAllied’s technical manager
andEd Stephenson
Allied’s steel superintendentin front of the
Spirit of British Columbia(Hull # 254)
just before launch
Bow view of the Spirit of Vancouver Island
Chip Barges Built in BC – Post 2000Current Demand For Wood Chip Transport ?
The Inkster on sea trials, with the crew on deck
Allied Hull 259 – Delivered 2007
Slow TimesSlow TimesMetal Shipbuilding Yard ClosuresMetal Shipbuilding Yard Closures
1990’s1990’s
- Burrard Drydock (Versatile, North Vancouver)- Yarrows (Versatile, Victoria)- Bel-Aire Shipyard, North Vancouver- Westcoast Manly, Vancouver- Vito Steel Boat, Delta- Matsumoto, North Vancouver- Shore Boats, Richmond
1990’s – B.C.’s Future was in Ship Repair
Work for Some
Most Shipbuilding Yards Close
1986 – 1800 Ton Lift Capacity Floating Dry-dock
West Coast Shipbuilding Yards ThatWest Coast Shipbuilding Yards That Have Built Complex Vessels Over Have Built Complex Vessels Over 30 Meters Long: 30 Meters Long:
-- Allied Shipbuilders Allied Shipbuilders
- Vancouver Shipyards (WMG)- Vancouver Shipyards (WMG)
- Victoria Shipyards (WMG)- Victoria Shipyards (WMG)
- BUILDERS MUST COMPLY WITH STRINGENT - BUILDERS MUST COMPLY WITH STRINGENT SAFETY & ENVIRONMENTAL STANDARDS, ETC. SAFETY & ENVIRONMENTAL STANDARDS, ETC.
- CANADIAN MARINE REGULATORY CLIMATE AMONG - CANADIAN MARINE REGULATORY CLIMATE AMONG MOST CHALLENGING IN THE WORLD MOST CHALLENGING IN THE WORLD
- TO MY KNOWLEDGE, NOT DUE TO EXCESSIVE - TO MY KNOWLEDGE, NOT DUE TO EXCESSIVE PROFITS FOR THE BUILDER PROFITS FOR THE BUILDER
THE COST OF CANADIAN BUILT SHIPSTHE COST OF CANADIAN BUILT SHIPS
‘‘WHAT’ IS TO BE BUILTWHAT’ IS TO BE BUILT
- TO BUILD REASONABLY PRICED SHIPS, THE CUSTOMER - TO BUILD REASONABLY PRICED SHIPS, THE CUSTOMER MUST COME TO THE PARTYMUST COME TO THE PARTY
- TOO OFTEN GOVERNMENT SHIPS ARE NEEDLESSLY - TOO OFTEN GOVERNMENT SHIPS ARE NEEDLESSLY COMPLEX COMPLEX
- BUILD SIMPLE―UTILITARIAN―EFFICIENT- BUILD SIMPLE―UTILITARIAN―EFFICIENT
- ACT AS IF IT IS YOUR OWN MONEY- ACT AS IF IT IS YOUR OWN MONEY
High Speed Ferry
Owners Idea – Builders Receive the “Credit”
Why Build In Canada?Why Build In Canada?
100 Car Commuter Ferry
Spartan, Utilitarian, Efficient
100 Car Commuter Ferry
Allied Hull 257
23.4%
14.1%
18.3%
19.8%
24.4%
B.C.Companies
Canadian(Non-B.C)
Companies
Wages & BenefitsPaid Directly To
Shipyard Employees
ForeignContent
Paid To Three Levelsof GovernmentBy Shipbuilder
BC Shipbuilding - Price Distribution
Example - 360 foot / 100 vehicle ferry
Global Shipbuilding PractiseGlobal Shipbuilding Practise
For many governments, shipbuilding is an important aspect of their national pride and industrial policy. Consequently, the industry worldwide operates in a distorted marketplace.
European Union - Had direct subsidy until recently - Supportive Government Policy
United States - Canadian built commercial vessels prohibited from USA, but US builds enjoy duty free access to Canada.
Korea - Previous bailout by government / IMF - Supportive Government Policy
China - Very low wage rates and supportive government policy
Brazil – Supportive Government Policy
Challenges For Canadian ShipbuildersChallenges For Canadian Shipbuilders
ONLY REASONABLE THAT CANADIANS ARE ONLY REASONABLE THAT CANADIANS ARE INVOLVED WITH THE DEVELOPMENT AND INVOLVED WITH THE DEVELOPMENT AND PRODUCTION OF THEIR NATURAL RESOURCES.PRODUCTION OF THEIR NATURAL RESOURCES.
MUST HAVE NATIONAL POLICIES WHICH MUST HAVE NATIONAL POLICIES WHICH CREATE A COMPETITIVE DOMESTIC MARKET TO CREATE A COMPETITIVE DOMESTIC MARKET TO USEFULLY EMPLOY CANADIANS.USEFULLY EMPLOY CANADIANS.
GOVERNMENT LEGISTATION ACTIONGOVERNMENT LEGISTATION ACTION
Ensure Canadian Industry Engaged In
Building Ships For Resource Development.
- The Rest Of The World Does
Current CanadianCurrent CanadianFederal Government PolicyFederal Government Policy
“The federal government will continue to procure, repair and refit vessels in Canada subject to operational requirements and the continued existence of a competitive domestic marketplace”
GOVERNMENT PROCUREMENT ACTIONGOVERNMENT PROCUREMENT ACTION
- COMPETITIVE BID PROCESS FOR PROCUREMENT- COMPETITIVE BID PROCESS FOR PROCUREMENT
- PRIVATE SECTOR SHIPYARDS RATHER THAN - PRIVATE SECTOR SHIPYARDS RATHER THAN GOVERNMENT SHIPYARDSGOVERNMENT SHIPYARDS
- UTILIZE THE EXISTING “SURVIVOR” SHIPYARDS; - UTILIZE THE EXISTING “SURVIVOR” SHIPYARDS; THEY HAVE PASSED THE TESTTHEY HAVE PASSED THE TEST
- IMMEDIATELY COMMENCE PRACTICAL - IMMEDIATELY COMMENCE PRACTICAL SHIPBUILDING PROJECTSSHIPBUILDING PROJECTS
- BUILD NEW GOVERNMENT SHIPS ON A RATIONAL - BUILD NEW GOVERNMENT SHIPS ON A RATIONAL SCHEDULE TO ENSURE CONTINUITY OF WORKSCHEDULE TO ENSURE CONTINUITY OF WORK
Questions