Impact of decarbonisation on global ship repair yard industry

Background

• The client was evaluating an investment in a new floating dock for a Turkish shipyard and approached Drewry to conduct a commercial and technical due diligence.

   

Client Objectives

• To provide an understanding of the global ship repair market landscape and carry out a supply-demand analysis

• To evaluate market demand and competitive positioning

• To assess the technical feasibility of a new floating dock

• To review business plan, utilisation, revenue assumptions, capex and financial viability

Approach

• Conducted a market analysis, including competitive positioning in the ship repair sector, and analysed market share and dock utilisation for the target yard
• Mapped the vessel traffic in the target market using AIS data
• Reviewed the potential  impact of decarbonisation/regulatory environment on repair demand
• Developed traffic and revenue forecasts, taking the competitive landscape into consideration
• Reviewed business plan assumptions
• Conducted technical due diligence of dock design, layout, capex for the new dock, the company’s technical capability and execution readiness
• Complete detailed risk assessments

Results achieved

• Drewry delivered an in-depth market due diligence report detailing the global landscape of the ship repair yard industry.
• Project confirmed the technical capability of the client as well as the technical suitability of the new dock.
• Project was evaluated as feasible with low execution risk.