Tue, 09 February 2016

US$10bn of investments already announced for Naval shipyard and shipbuilding programme (HVO BRA-16). Current projections up to 2020 estimate demand for 500+ new ships and 20 new shipyards.

In the 1950’s to 70’s Brazil had a thriving and well developed shipbuilding industry for mainly general cargo vessels. This peaked at the end of the 1970s only to slump in the eighties due cost of build and operation under Brazilian flag. The revival of the shipbuilding sector came about from 1998 onwards driven by exploration and finds by Petrobras in Brazil’s offshore oil and gas industry. The first vessels produced in this new phase were support vessels for rigs and oil production platforms (these latter produced abroad). Later, in 2001, PETROBRAS launched its Program for the Modernization of the Supply Vessel Fleet.

This Program was successful and moved to its second phase when it was decided that Brazilian shipyard companies would participate in the construction of a variety of marine platforms, supplying some of the modules built from oil tanker hulls for platforms built abroad. This led in 2003 to the Government supporting a policy that assembly of the modules onto the platforms and finalisation of the production units should take place in Brazil. This in turn led to the commissioning of large semi-submersible platforms to be built partially or completely in Brazil. This step sealed the reactivation of a number of shipyards and attracted foreign investment into the Brazilian shipbuilding industry. The Brazilian content on these platforms has progressively increased since.

In 2006, TRANSPETRO, the national crude oil shipping line, selected through process of public tender, the Brazilian shipyards to build the first 26 new oil tankers for the modernization and expansion of their fleet.  This changed the scale of the Brazilian shipbuilding industry, ensuring the activity of the shipyards and generating thousands of new opportunities for skilled jobs. As a result  in 2007, the shipbuilding industry was confirmed into the PAC Plan (the Federal Government’s program of accelerated growth in reality means the Brazilian National Development Plan), as one of the most relevant sectors for the fulfillment of the country’s strategic goals in terms of generating job opportunities and increased GDP growth.

Entry into the PAC Plan assured provision of investment from Central Government into shipyard infrastructure and for the expansion and modernisation of national shipyards, which was a key pre-condition to Brazil being able to fulfill its own demand for vessels and platforms. Funding to Brazilian shipyards is supplied through the Merchant Marine Fund to cover the shipyards’ risks in the vessel construction phase.

Further details on specific opportunities around this project will be provided as they become available. In the meantime, UK businesses interested in this project are encouraged to register their interest below.

High Value Opportunities (HVO) programme

The high value opportunities programme identifies large scale overseas projects offering the most value to UK Plc and aims to provide an intensive level of support to help UK businesses win contracts in and around these opportunities.

 Find out more using the below link:-

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