Shipbuilders in boom time

THE Australian Marine Complex in Cockburn Sound is home to three fiercely competitive shipbuilders – Austal Limited, Tenix and WaveMaster International and by all accounts their business is booming, despite major Australian and overseas competitors.

Each Western Australian company is talking expansion, two have plenty of work on hand, and the third is awaiting the outcome of a significant tender.

Tenix Defence Marine Division is handing over a search and rescue vessel to The Philippines Coast Guard today, WaveMaster has secured two new orders this month, and Austal has $450 million of orders on its books.

All three companies deal with the scheduling and cost disadvantages of a delivery time to Europe between three and four weeks greater than competitors located closer to that market.

And each imports some things, be it engines, gearboxes and waterjets not manufactured in Australia, or aluminium, from either overseas or eastern Australia.

However, despite formidable established competitors in Asia and Europe, including Damen, FBM Babcock, Fjellstrand, Marinteknik and Rodriquez, all three are exporting.

Each company has its own specialist markets, but they all design and construct ferries and offer delivery, training and maintenance services. They also face the difficulties of managing workforces around contracts.

Austal employs 1,700 in WA, with minimal use of sub-contractors, rotating staff and tradespeople between divisions. Tenix and WaveMaster maintain a core workforce but contract out specialist painting, electrical and pipe work.

The AMC area, where they reside, has been described as “critical to the success of the aluminium shipbuilding industry in WA” at a time when worldwide demand for new patrol boats, support vessels, luxury leisure craft and high performance passenger and vehicle carriers is increasing.

The market growth comes from a variety of reasons, including increased awareness and enforcement of environmental and safety standards, demand for improved performance and greater comfort and a growing need for vessels to service economic exclusion zones, fisheries protection and customs operations.