- A leading shipbuilder is exploring operations at a major North African shipyard to meet growing global maritime demand.
- Strategic partnerships in India and the U.S. are part of efforts to decentralize production and access international orders.
- The focus is on operating existing or under-construction shipyards rather than building new ones to manage cost and risk.
One of the world’s major shipbuilders is looking to expand its production capacity by bidding for a 30-year operating right at a large shipyard under development in North Africa. The yard, located on the Atlantic coast, will be the largest on the continent, spanning 210,000 square meters and featuring advanced docking infrastructure. With a domestic order backlog of over 450 vessels—equivalent to more than two years of work—the company is seeking international sites to relieve scheduling pressure.
The North African country behind the shipyard has ambitious maritime goals, aiming to increase its national merchant fleet significantly by 2040. Due to a lack of local shipbuilding expertise, the government is outsourcing the shipyard’s operation to an experienced foreign partner. This move presents a strategic opportunity to serve not only local needs but also shipping routes connecting Africa, Europe, and the Americas, according to Businesskorea.
Leveraging Overseas Facilities to Meet Surging Demand
Instead of building new yards from scratch, the company is focusing on acquiring operational rights to existing or planned facilities abroad. This allows faster capacity expansion without the high capital expenditure typically associated with new construction. Similar international ventures in Southeast Asia have already demonstrated the benefits of this model.
If successful, the North African yard would join a global network designed to alleviate domestic bottlenecks and provide flexible production nodes in high-demand regions. These additional facilities support the scaling of output while enabling quicker response times to changing global order flows.
India: A Collaborative Gateway for Vessel Orders
In India, the shipbuilder has entered into a long-term cooperation agreement with a major state-owned shipyard. This partnership includes technology transfer, productivity upgrades, and shared efforts to secure both domestic and international orders. It also allows access to existing docks and resources to construct vessels up to international standards.
India plans to order up to 1,000 ships over the next decade as part of national maritime development strategies. With shipping accounting for 95% of the country’s trade, the government is pushing major initiatives to bolster ship production and infrastructure. The foreign partner stands to benefit by aligning with these initiatives and tapping into one of the world’s fastest-growing maritime markets.
Expanding into the U.S. Market via Joint Ventures
In the United States, a joint venture has been signed with a local shipping operator to produce medium-sized dual-fuel container carriers by 2028. This includes shared design responsibilities and the use of American yards for construction. The collaboration reflects strengthening ties and shared strategic interests between the two countries.
There are expectations that the partnership will expand to include a broader range of vessel types. This U.S. expansion fits into a larger trend of diversifying production sites and entering regions with strong demand and favorable industrial policies.
Balancing Growth and Risk in a Cyclical Industry
While the global shipbuilding market is currently experiencing high demand, the company is approaching growth with caution. By operating or leasing capacity at foreign shipyards, it can increase production without the long-term financial burden of building new facilities. This strategy provides the flexibility to adjust capacity in line with market cycles.
Industry analysts note that using overseas docks offers a faster route to expand throughput, especially when existing domestic capacity is fully booked. Going forward, the company is expected to continue evaluating global opportunities that align with its long-term strategic goals.
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Source: Businesskorea
