When does a boat die ? Mike Meade M3 Marine Pte Ltd Singapore OSV Conference September 005
Preamble <ul><li>SEA Market ‘dominated’ by AHTS </li></ul><ul><li>PSV’s will have influence on this market as they appear ...
Some relevant numbers……. Photo courtesy of Nomis.  Dea Lingue blt 1973, still operating successfully in Asia
Smaller AHTS (4-7000 BHP) 490 in service, average age 22 years 31+ vessels under construction Courtesy RS Platou
Courtesy RS Platou <ul><ul><li>Medium AHTS (7-12000 BHP) </li></ul></ul><ul><ul><li>327 in service, average age 22 years <...
Courtesy RS Platou Large AHTS Market, 12000+ BHP 182 vessels in operation, average age 11 years 37 vessels under construct...
….and the PSV’s <ul><li>Smaller PSV’s (1000 – 1500T DWT) </li></ul><ul><li>298 in service, average age 24 years </li></ul>...
..and the Rigs Courtesy UOBKayHian
Conclusion on Numbers…… …....”simple sums for simple sailors” <ul><li>Existing Small / Medium AHTS plus smaller PSVs accou...
What to do with an old boat ? <ul><li>Sell to Competitors </li></ul><ul><li>Sell outside of the Industry </li></ul><ul><li...
Voluntary scrapping <ul><li>Markets are India, China, Bangladesh, Pakistan, China and Turkey </li></ul><ul><li>Currently p...
Voluntary Scrapping Continued… <ul><li>Value in a ‘boat’ is in its machinery </li></ul><ul><li>Sell basis equipment value ...
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20050901 - OSV Singapore: When does a boat die ? September 2005 - Singapore

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20050901 - OSV Singapore: When does a boat die ? September 2005 - Singapore

  1. 1. When does a boat die ? Mike Meade M3 Marine Pte Ltd Singapore OSV Conference September 005
  2. 2. Preamble <ul><li>SEA Market ‘dominated’ by AHTS </li></ul><ul><li>PSV’s will have influence on this market as they appear over time or displace vessels from other markets </li></ul><ul><li>There is a newbuilding boom </li></ul><ul><li>Is there enough capacity to absorb all this new equipment ? </li></ul><ul><li>What will happen to all of the old boats ? </li></ul><ul><li>When does a boat die ? </li></ul>
  3. 3. Some relevant numbers……. Photo courtesy of Nomis. Dea Lingue blt 1973, still operating successfully in Asia
  4. 4. Smaller AHTS (4-7000 BHP) 490 in service, average age 22 years 31+ vessels under construction Courtesy RS Platou
  5. 5. Courtesy RS Platou <ul><ul><li>Medium AHTS (7-12000 BHP) </li></ul></ul><ul><ul><li>327 in service, average age 22 years </li></ul></ul><ul><ul><li>47 vessels under construction </li></ul></ul>
  6. 6. Courtesy RS Platou Large AHTS Market, 12000+ BHP 182 vessels in operation, average age 11 years 37 vessels under construction
  7. 7. ….and the PSV’s <ul><li>Smaller PSV’s (1000 – 1500T DWT) </li></ul><ul><li>298 in service, average age 24 years </li></ul><ul><li>3 vessels under construction </li></ul><ul><li>Medium PSV’s (1500-4000T DWT) </li></ul><ul><li>342 in service, average age 11 years </li></ul><ul><li>60 vessels under construction </li></ul><ul><li>Large PSV’s (>4000T DWT) </li></ul><ul><li>87 in service, average age 5 years </li></ul><ul><li>28 vessels under construction </li></ul>
  8. 8. ..and the Rigs Courtesy UOBKayHian
  9. 9. Conclusion on Numbers…… …....”simple sums for simple sailors” <ul><li>Existing Small / Medium AHTS plus smaller PSVs account for some 1,115 vessels with an average age of 23 yrs. </li></ul><ul><li>There are 50 rigs on order </li></ul><ul><li>There are a total of 115 AHTS and 91 PSV’s on order (total 206 units) </li></ul><ul><li>At a conservative ratio of 2 vessels utilised per new rig, the new rig fleet will absorb 100 new vessels (maybe less with increased efficiencies) </li></ul><ul><li>Thus around 105 of the newer vessels will displace ‘X’ old vessels. </li></ul><ul><li>Displacement would seem inevitable ? But how many ? </li></ul>
  10. 10. What to do with an old boat ? <ul><li>Sell to Competitors </li></ul><ul><li>Sell outside of the Industry </li></ul><ul><li>Lay up </li></ul><ul><li>Involuntary Scrap </li></ul><ul><li>Voluntary Scrap </li></ul>
  11. 11. Voluntary scrapping <ul><li>Markets are India, China, Bangladesh, Pakistan, China and Turkey </li></ul><ul><li>Currently pricing based on LDT </li></ul><ul><li>On a 600t LDT boat at $300 / ton you would raise US$ 180,000…..would not even pay the mobe </li></ul><ul><li>Imaginative scrapping…… </li></ul>
  12. 12. Voluntary Scrapping Continued… <ul><li>Value in a ‘boat’ is in its machinery </li></ul><ul><li>Sell basis equipment value rather than LDT? </li></ul><ul><li>Emerging nations could use machinery for infrastructural development </li></ul><ul><li>“Club” (ISOA ?) together to send vessels to scrap en masse (economy of scale). </li></ul><ul><li>More artificial reefs (environmental lobby plus no $$) </li></ul>

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