COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(91) 335 final 
Brussels, 20 September 1991 
COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL, THE EUROPEAN PARLIAMENT 
AND THE ECONOMIC AND SOCIAL COMMITTEE 
New Challenges For Maritime Industries 

~A~ 
Table of contents 
NEW CHALLENGES FOR MARITIME INDUSTRIES 
A. INTRODUCTION 
B. MARITIME ISSUES AND THEIR IMPORTANCE FOR THE EUROPEAN COMMUNITY 
B.I THE IMPORTANCE OF MARITIME ISSUES 
B.I.I. Resources of the sea 
B.I.2. Envi ronmental aspects and Internat ional standards 
a) CIimate 
b) Standards 
c) Pol lut ion 
B.I.3. Globalization of the Internat ional economy 
B.I I THE COMMUNITY'S INTEREST 
B.I 1.1. Employment 
B.I 1.2. Trade 
a) EC Dependence on trade 
b) Increase In European trade 
B.I 1.3. Envi ronment 
B.I 1.4. Fisheries 
B.li.5. Marine science and technology 
B.lll. The new EC maritime challenges 
(2) 
- lh*4 -
C. EUROPE'S MARITIME INDUSTRIES : ELEMENTS FOR EUROPEAN COMPETITIVENESS 
C.I THE SHIPBUILDING SECTOR 
C.I I THE EC-FLEET 
C.I 11 THE EQUIPMENT INDUSTRY 
CIV RESOURCES OF THE SEA INDUSTRY AND MARINE RESEARCH 
C.V SITUATION IN JAPAN AND THE USA 
D. A NEW EUROPEAN MARITIME INITIATIVE 
D.I AN APPROACH IN THE FRAMEWORK OF THE COMMISSION'S INDUSTRIAL POLICY 
CONCEPT 
D.I I TOWARDS A COHERENT MARITIME APPROACH - Action points 
D.I 1.1 Business environment 
D.I 1.2 Safety 
D.I I.3 R&D 
D.11.4 Transport 
D. 11.5 Training 
D.I 1.6 EnvIronment 
D.I 1.7 Competition in the EC 
D.I 1.8 Internat ional Dimension 
D.I I I AN INTEGRATED EUROPEAN ANSWER 
E. CONCLUSIONS 
Annex 
^ \K^ 
A. INTRODUCTION 
Maritime issues have become Increasingly important on an internat ional 
level in ecological, economic and political terms. 
The Community should actively react to this, because of Its long coastline, 
its dependence on foreign trade and efficient shipping services, and its 
envi ronmental interests. The EC should evaluate what would be the best way 
to tackle maritime challenges, and this also Includes Improving the 
compet it iveness of the EC's maritime industries. These Industrles include 
shipping, shipbulidfng, the service sector, marine equipment and the 
"resources of the sea" industry Including fishing. The Community should 
quickly find answers to the following quest ions: 
- what are the mar/time Interests of the EC; 
- how its maritime interests are affected by current and future 
developments in the internat ional maritime field; 
- how to ensure that different maritime aspects are regarded as part of 
the Community's overall maritime dimension, as they are the common basis 
of the EC's maritime future; 
- whether Member States' maritime policies are still adequate In the 
context of a rapidly changing and Increasingly demanding InternatIonal 
maritime environment; 
- how to promote on a European level the Community's maritime Interests 
and, especially, the competitiveness of the EC's maritime industries . 
This Communication seeks an open discussion on the increasing importance of 
the Community's maritime dimension and aims to find the EC's answer to 
current and future challenges. Its primary Intention Is to develop the 
relevant maritime Issues in the framework of general princlpies of the 
Community's Industrial policy, as recently explained In the Commission's 
Communication "IndustrI a I policy in an open and competitive 
envi ronment"(1) 
(1) COM(90) 556 final, 16 November 1990. 
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In this context, it is worth ment Zoning that this Communication does not 
follow the more tradit ional approach of concentrât ing on sector specific 
aspects. Instead, the approach pursued In this Communication is a general 
and horIzontal one, as it addresses the whole maritime dimension - which 
is of common concern to the different parties Involved. 
The basic object Ives and contents of this Communication are the following : 
to underline the Importance of maritime Issues and the Community's 
interest's in this field (chapter B); 
to describe the key Issues for improving the compet it iveness of the 
EC maritime industrles, in comparison with its main InternatIonal 
competI tors (chapter C); 
to outline the poss/blI It les for a maritime Initiative, In the 
framework for the Community's Industrlal policy concept (chapter D); 
to propose a discussion forum with représentât Ives of all the 
interested parties (maritime industries, research Institutes, Member 
States' Maritime and Industrial Administrât ions and the Commission 
for example), which should contribute to a more precise définit Ion of 
the type of actions to be developed In order to improve the 
compet it iveness of these EC maritime sectors 
These contr Ibut Ions, In the form of a report, should be presented to the 
Commission within 9 months. 
B. MARITIME ISSUES AND THEIR IMPORTANCE FOR THE EUROPEAN COMUNITY 
B.I THE IMPORTANCE OF MAR I TIME ISSUES 
In recent years, maritime Issues - arising out of the use, explorât Ion and 
exploitât ion of the sea and its resources - have become Increasingly 
Important. 
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B.I .1. Resources of the sea 
Today the ocean Is regarded the last major frontier on earth for the 
exploitât ion and development of resources to sustain mankind in the future. 
Increasing Interest Is therefore focussing on the resources aspect of the 
oceans. Because of the Increasing populat Ion growth In part leu Iar and the 
possible depletion of vital minerals and fossil energy sources on land: 
the oceans are perceived as future sources of food, energy, minerals, 
chemicals and space. 
The possibiIIty of intensive use of the oceans has emerged with advances in 
marine sciences and technology, research in fish finding, breeding 
techniques and aquaculture. Research is also underway on the use of the sea 
for the product Ion of renewable energy, for example from tidal, wave and 
thermal ocean energy. However, the exploitât Ion of minerals from the deep 
seabed may be a subject for the next decade. 
B.I.2. Environmental aspects and International standards 
a) Climate 
As the ocean Is the most Important buffer In the global climate system, ft 
Influences the world's climate decisively. The ocean acts as a large 
reservoir of heat and carbon, and exchanges of both between the atmosphere 
and the ocean occur naturally on enormous scales. Any forecast of future 
global and regional change in climate has to be based on more detailed 
informat ion on volume, distribution and movement of water masses, and on 
biogeochemical fluxes such as that of carbon. 
b) Pollution 
The growing awareness of the Importance of the sea's resources has been 
accompanied by concern over the health of the oceans due to discharges 
from land, oil pollution caused by tanker accidents, dumping of hazardous 
wastes Into the oceans, over-fIshlng of a number of species, and conflicts 
between states over access to and use of maritime areas. 
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c) Standards 
Following the disasters of the "Exxon Valdez" the "Herald of Free 
Enterprise", and the "Scandinavian Star" and the recent accidents in the 
Mediterranean, there Is an urgent need for more stringent internatIonal 
standards and rules concerning saftey, pollution control IIng, vessel design 
and operatIon, In the context of the InternatIonal Mar/time OrganlzatIon 
(I MO). 
B.I.3. GlobalIzat/on of the International economy 
With continulng globalization of the international economy, maritime 
transport will become more and more a crucial link: an estimated 95% of all 
internationally traded goods are transported by sea, and world seaborne 
trade measured In tonnes Is forecast to grow by 2,1 percent par annum until 
the year 2000(1). 
B.I I THE COMMUNITY'S INTEREST 
The EC of 12 Member States alone has +1- 15.000 km of coastline, many 
islands, large peninsulas and the largest concentrât(on of ports in the 
world. No continent has as much coastline relative to Its surface as 
Europe. The exclusive economic zones of 200 nautical miles of the Member 
States cover an area of more than 3 mill, km 2. 
B.11.1 Employment 
Figures from the Member States indicate that in the sector of fisheries 
alone there are approximately 300.000 persons working at sea. 
As it is assumed that for every one fisherman employed at sea there are 
four to five employed on land, employment In the fisheries sector within 
the Community amounts to 1.5 up to 1.8 million people. On the basis of 
this figure, employment for the maritime Industry as a whole (Including 
shlpbuiIding, maritime transport, off-shore Industries etc.) can be 
(1) EEC Maritime Industries, report by Moore Stephens - Accountants, 1989 
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estimated roughly at 2.5 million people. In other words, employment in the 
maritime industry Is considerably larger than, for example, employment In 
the sector energy and water in the Community. 
B.I 1.2 Trade 
a) EC Dependence on trade 
The EC Is the world's biggest trading partner. Extra-EC exports alone 
account for about 25% of world exports, and 90% of the Community's 
external trade is carried by ships. Given Europe's high foreign trade 
exposure of 18% of GNP (1990), higher than the USA's 16% or Japan's 17%, 
not counting the growing Importance of services and foreign direct 
investment, and given Europe's Internal liberalization process, the EC Is 
dependent on efficient and safe transport facilities. 
b) Increase In European trade 
Short sea transport, defined as transport along Europe's geographic 
coastline plus the Mediterranean, the Baltic Sea and Black Sea coasts, and 
inland waterway transport will Increase with the complet Ion of the 
internal market, but equally with the IIberal izatIon process In central and 
eastern European countries. Trade and transport demand in Europe, already 
high, will rise further. 
The EC is trying to work out such solutions, through a variety of proposals 
In the transport field and also with regard to Its trans-European network 
programme^1). Maritime and Inland waterway transport are In many cases an 
alternative to heavily congested land transport and therefore an important 
element in the framework of the European Infrastructure programmes . 
Efficient port facilities, applIcat ion of new container technologies, new 
types of ferries, combined transport, development of Intermodal Ism, better 
exploitât(on of Inland waterways and Investment In modern ship-types -
prerequisites for efficient sea transport - are consequently of direct 
Interest to the EC's future transport concept. 
(1) COM(90)585 final, 10 December 1990. 
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B.11.3 EnvIronment 
The EC's transport problems and the internatIonal pollution of the oceans 
relate both to the Community's environmental Interest In the maritime 
sector. 
Due to Increasing transport problems, the Community has a specific interest 
in transport methods, which harm the environment as little as possible. In 
this respect, short sea and inland waterway transport may offer an 
alternat I've to land transport. 
Vessels consume less energy per tonne carried and cause less envi ronmental 
disturbance in terms of noise and air pollution than any other means of 
transportât Ion. In many cases, short sea transport and Inland waterway 
transport are also likely to be the most cost-effectIve means of transport . 
With regard to its long coast IInes, Its partly endangered fish stocks, but 
also with regard to the Impact on the climate, the Community has a vital 
Interest In the health of the oceans. High and effectively applied 
internat ional standards are therefore in the interest of the Community. 
In all InternatIonal maritime areas and markets, It Is crucial that 
European standards be set at the requisite level and be compatIble with 
InternatIonal standards. In the absence of internationally agreed 
standards, it will also be necessary to set standards at the European 
level, leading to the creation of InternatIonal standards. Standards for 
new technologies must be delivered quickly, if they are to meet the needs 
of the market . 
In 1990, the USA Implemented unilateral régulât ions which will require 
newly-built tankers which want to enter US harbours to be double hulled. On 
the other hand, the Japanese are proposing - in the context of current I MO 
negotiations - an alternatIve, the mid-deck tanker, developed by a leading 
Japanese yard. 
Although certain EC yards from four Member States are Jointly developing 
their own tanker design, the discussions on this matter In the I MO are left 
to individual Member States. 
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B.I 1.4 Fisheries 
The European Community Is one of the most Important sea fishing powers In 
the world. It also has the world's largest market for fishery and 
aquaculture products which are supplied to a great extent by growing 
imports. 
The challenges for the Community are in particular: the Improvement of 
conservât ion and control measures; the reduction of the over-capacity of 
the fleet; the developing of new technologies for fishing, the processing 
and marketing industry on land; research; and the maintenance and extension 
of fishing poss/blI It les In InternatIonal and external waters^1). 
Increasing demand for fish on world markets, particularly In the 
Industr i alIsed countries, together with the limitations of fishing 
resources, contribute to the fact that aquaculture Is becoming Increasingly 
Important in economic terms. 
With a view to strenghtening the sclent If ic and technological base of the 
Community's fishing industry the fisheries and aquaculture research 
programme FAR was Introduced (1988-1992).The new agrIcultural and agro-
industrial research programme which Includes fisheries, is part of the 
third framework programme. 
(1) Article 8 of Reigulatlon 170/83 (CEE) on the basic provisions 
concerning the Common Fisheries Policy provides for a report to be 
produced by the Commission and presented to the Council : this report 
will cover the situation in the fisheries sector and will indicate 
current problems and gu/delInes for the future. 
The report will be presented in the las quarter of 1991, and the 
contribution on fisheries in this communication Is therefore limited. 
13) 
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B.I 1.5 Marine science and technology 
The resources of the sea Industry Is only slowly taking shape. However, as 
it will be of crucial Importance in the long run, the foundatIons for a 
successful EC Industry have to be laid today. As a prerequisite, marine 
science and technology Is therefore an area that deserves the utmost 
attent ion. 
The EC's Marine Science and Technology R&D programme MAST^1) is aimed at 
Improving knowledge of the marine envIronment In order to promote new 
explorât Ion technologies for the protect Ion and exploitât Ion of marine 
resources. It also alms to Improve coord InatIon and coopérât ion amongst 
national R&D programmes. 
The EC's BR ITE/EURAM programme addresses materials and manufacturing 
technologies, Including subjects such as automated welding In order to 
Increase the safety and efficiency of ship construct Ion. 
At the same time, It should be recognized, however, that exploitât Ion of 
the oceans as an interdise/pi (nary area depends on the coopérât (on of the 
different sectors and disci piines concerned. This coopérât Ion has to be 
strengthened today, If Europe does not want to loose out against its main 
internat ional competI tors. 
B.lll. The new EC maritime challenges 
The EC's specific maritime Interests have to be seen against the background 
of the InternatIonal maritime dimension. 
Envi ronmentally necessary InternatIonal safety and design standards, as 
fixed by the I MO for example, directly affect the EC's envIronment policy. 
At the same time, they also affect the situation and perspectives of EC 
shipowners, for whom new standards very often mean higher Investment costs. 
Community yards are also affected, since they have to adapt to these new 
standards. 
The resources of the sea are another example. Future posslbiI it les for 
successful I y competing in this slowly emerging market depend not only on 
advances in the marine science disci pi ine but also on the conversion of 
sclent ific knowledge Into Industrial applIcatIons. In other words, 
(1) JO L200 of 13.07.1989, JO C174 of 16.07.1990 
- 9 -
coopérât Ion and collaboration are necessary between the different sectors 
and disci piines concerned, and this is of particular Importance In the case 
of small and medium size enterprises (SMEs). 
However, these are only examples of areas where the existence of common 
interests and/or synergy effects between different mar/time sectors are 
already apparent. Given the complexity of the whole maritime dimension, 
and the Interdependences between the health of the oceans and their 
resources on the one hand, and shipping, shlpbufIdtng and exploitation of 
the resources of the oceans on the other, all maritime issues are elements 
of one maritime dimension. 
in this respect, the importance of all the service sectors (financial, 
insurance, classiffeat ion...) for the maritime dimension must be borne in 
mind. Here, Europe has developed a whole range of expertise and know-how, 
and has the greatest possible Interest In not losing the competItIve 
advantages it has achieved. 
It is in this way that this document addresses the whole maritime sphere, 
in order to prepare for the better exploitât Ion of current and future 
synergy effects between all maritime disci piines. 
C. EUROPE'S MARITIME INDUSTRIES : ELEMENTS FOR EUROPEAN COMPETITIVENESS 
Europe's maritime future depends on the compet ftIveness of Its Industries. 
Only efficient maritime industries can guarantee that the Community will be 
In a position to part ici pate adequately and successfully In internat ional 
trade, and benefit from the exploitât ion of the oceans. Therefore, the 
current situation In the different maritime industrles and their adjustment 
and development processes, as well as their wl11Ingness to cooperate, are 
of importance to Europe's future, both in economic and political terms. 
Maritime Industries like shipping and shlpbulIdlng are traditIonal sectors, 
facing strong competIt Ion from third countries. 
Worldwide overcapacity In shipping and shlpbulIdlng, unfair pricing 
practices and shlpbulIdlng subsidies In all forms have left their mark. 
Ship prices have not always covered building costs, and freight rates have 
10 -
so/net I mes been very low. With regard to the shlpbul Idlng sector, very 
little room was left for Investing In modern equipment, advanced product Ion 
faciI it les or the development of new product Ion technologies. 
Maritime activities are increasingly demanding from a technological point 
of view. Nowadays, a modern cruise ship can contain as many computerised 
items as many naval ships. A cruise ship can be considered a miniature town 
in which all technical aspects of modern life are concentrated. As already 
underlined in the Commission's communicat ion "Industrial policy in an open 
and competitive environment"(1) It fs no longer possible to speak today of 
high or low technology Industries, but only of products that may have 
different levels of sophist icatIon. 
Shipowners are constantly demanding the latest designs from shipbuiIders 
and equipment manufacturers. Quietness, safety and economy have to respond 
to the latest technical levels. The possibiIity of building 
technological I y sophisticated ships, allowing EC shipowners to operate with 
smaller but highly trained crews, may allow for improving the 
competitiveness of EC fleets vls-a-vis those of third countries. Shipowners 
thus need to be provided with the necessary devices like for example fully 
Integrated ship control systems or remotely control led deck machinery. 
Suppliers of electronic and computerized devices for automatic procedures 
have therefore a special role to play as they have to respond to these 
demands. 
C.I THE SHIPBUILDING SECTOR 
The shlpbulIdlng sector Is responsible for providing efficient, modern and 
safe ships, and is dependent on R&D in order to make technological 
advancements and Improvements for all types of maritime transport. 
The performance of the shlpbulIdlng sector and Its posslblIIty to Invest In 
R&D Is therefore an Important factor for the EC's maritime Interests. 
(1) COM(90)556 final, 16 November 1990 
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Today, the EC's market share of 20% (compared with Japan's 38%) Is based 
mainly on the construction of ships with a high technology content, where 
the Community still has a comparâtIve advantage. However, Japan's recent 
efforts to conquer this part of the market, starting with the successful 
construct ion of container and passenger vessels, pose serious difficulties 
for the industry. These difficult les are even more serious, given that EC-
shipbufIders operate in a deeply fragmented European market, where the 
first sfgns of coopérât Ion emerged only recently, for example with the 
creation of a common R&D committee, COREDES (Coopérâtion for Research and 
Development In European Shlpbulidlng). 
The introduct ion of modern product Ion technologies, add it Zonal R&D efforts 
and better exploitât Ion of the benefits of the internal market, Including a 
higher degree of Intra-Communlty coopérât Ion, are therefore urgently 
needed. Reviewing the potential of shlpbulIdlng technologies for marine 
utilization should be envisaged, for example with regard to new offshore 
structures, research vessels for science and Industry and deep sea mining 
equipment, built by specialfsed yards. 
The capacity to provide any safe and envIronmentalI y friendly ship type, at 
the lowest poss/ble price under free and fair normal compet ftIve 
conditions, Is absoututely necessary for the shlpbulIdlng sector. 
Shipowners will soon call for a new generation of high-speed cargo (and 
passenger) ships to meet the requlrements of Just-ln-tIme delivery and a 
division of labour for certain high-value or sensitive products. 
Against this background, attention should also be paid to the situation of 
those warship yards that are affected by declining military budgets. These 
yards are gradually trying to compensate for the fall In military orders by 
Increased activity In civil areas. Given the special technological know-
how of the warship yards, their experience and skills could be of great 
value a priori for civil activities, for instance In assisting In the 
explorât Ion and exploitât Ion of the oceans, in the development of new 
unmanned submers/b/es and underwater robotics. 
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C.ll THE EC-FLEET 
EC fleets are facing a multitude of chal lenges. In 1975 the fleet 
registered In the Community amounted to more than 30% of the world fleet. 
Since then, however, the Community's share has declined sharply, and did 
not even reach 15% In 1990. 
This decline has resulted in part from the growth of protect ion 1st measures 
by third countries and unfair pricing pract Ices. The Commission is 
constantly trying, In InternatIonal fora, to combat such developments and 
to create and preserve open markets and fair competition In shipping 
worldwide. These were Important object Ives of the four Council régulât Ions 
adopted In 19861K 
In a climate of strong InternatIonal compet it ion, protracted oversupply of 
shipping services worldwide, and a consequent fall In freight rates, the 
Community fleet has suffered a comparative disadvantage. The costs 
associated with the employment of crews from the Member States have been In 
many cases an important element In this disadvantage. 
Community shipowners are Increasingly using the open registers of third 
countries. Also Member States themselves have developed additional or 
second registers which, while being of help to some shipowners, do present 
the danger of an Increasing divergence of operating conditions between 
Member States' fleets and distort ions of compet it ion between Community 
shipowners. 
The Commission has put forward a package of positive measures and proposals 
Intended to stem the decline In the size of the Community fleet and In the 
employment of Community seafarers: "A future for the Community shipping 
Industry: Measures to Improve the operating cond1st ions of Community 
shipping" (COM (89)266 final of 3 August 1989). They include a proposal for 
a Community shipping register (EUROS), improvements to the effectiveness of 
Port State Control, and the Implementation of the principle of freedom to 
provide maritime services within the Member States. 
1) Council regulation (EEC) No. 4055/86, 4056/86, 4057/86 and 4058/86 of 22 
December 1986, OJ L378, 31 December 1986 
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Some of the proposals In the package have already been approved, and others 
have been subject to discussion In the Council and other Community 
Inst itut Ions. In particular, the EUROS proposal has been modified In the 
light of comments from the European Par I lament. Further modif/cat Ions, 
which would have the effect of exempting seafarers who serve on EUROS ships 
from income tax, are under active considérât Ion. These would reduce the 
costs to the shipping Industry associated with employment of Community 
nationals. This would also help to Improve the competItIve position of the 
EC fleet. 
In developing these and other proposals, the Commission has borne In mind 
that the Community fleet must operate In a very difficult world market 
situât ion. 
The subject of marltme transport , and especially the need to Improve the 
compet It iveness of EC shipping, will form an important element of the 
comprehensive White Paper on future Community transport policy which the 
Commission intends to prepare during the autumn of 1991. 
As a consequence of strong internatIonal competIt Ion, the Community Is 
pursuing the development, In technical and economical terms, of a modern 
fishing fleet capable of supplying the market with products at reasonable 
prices and which meet high quality and health requlrements. 
C.lll THE EQUIPMENT INDUSTRY 
The EC marine and off-shore equipment industry consists of a large variety 
of mostly medium-sized companies, which supply not only the commercial and 
the defence sectors, but also the non-marine sector. This sector covers 
all kinds of ship-machinery, navIgatIonal and safety equipment as well as 
marine envi ronmental instrumentât Ion. 
In the absence of technical harmonization of marine equipment, there are 
few opportunltles to exploit economies of scale, especially for safety-
related equipment. 
Opportunities for European manufacturers to exploit possible European 
markets have not all been exhausted, for example in equipment for exploring 
and exploit Ing the oceans. Ships' propulsion machinery Is another example. 
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Manufacture In Europe Is becoming less and less Important, whereas Imports 
of machinery built In Japan or Korea under European licences are rising. 
CIV RESOURCES OF THE SEA INDUSTRY AND MARINE RESEARCH 
The emerging resources of the sea Industry Is not a we 11 defined unit, but 
consists of all Industries that provide the infrastructure and services for 
the explorât ion and exploitât Ion of the oceans. 
For example the offshore sector comprises the construct(on sector - rigs, 
platforms, mostly built by specialfsed yards - and marine technology 
explorât Ions, field developments, and other services, Including supply 
vessels. This sub-sector thus brings together equipment Industry, yards, 
and marine science and technology. 
In order to be successful, the resources of the sea Industry has to rely on 
R&D in marine science and technology and the transfer of technologies from 
other industries. 
Modern complex marine science necessitates optimal organisât ion of marine 
research. In spite of the close links between basic and applied research 
and between the various disci piInes, there is still In most Member States 
the traditIonal Inst itut ional séparât ion between research in fisheries, 
defence, ocean mining, navlgat ion, coastal engineering, and In basic 
oceanography, marine biology and geology. 
R&D In marine technology in the Community has been so dominated by the 
requirements of offshore, oil and gas, and defence, that it has created a 
situation where the technology already developed now needs to be adapted 
and extended Into other promising areas. These Include electrical and 
electronic engineering In the marine environment, underwater accoustles and 
communication to faclIItate offshore exploitât Ion and operations, 
especially in deepwater, Including the development of autonomous (unmanned) 
vehicles and robotic mid-water and sea-bed systems. 
- 75 -
Despite their common problems, the extent of cooperation among Europe's 
maritime Industries Is still too limited and this Is especial ly the case as 
regards R&D and the development of common projects. 
CV SITUATION IN JAPAN AND THE USA 
In Japan, shipping and shlpbulIdlng are closely Inter I inked either at the 
level of Industrial conglomerates or as far as support measures are 
concerned. These links are most clearly exposed by the home credit scheme 
wich provides Japanese shipowners with low-cost financing which is 
inevitably used for the purchase of Japanese built vessels. Another 
example are R&D subsidies which are ostensibly paid to Independent research 
Institutes, but in fact ought to be more properly regarded as a direct 
benefit to the marine Industrles. Japan Is highly dependent on Imports of 
raw materials and exports of Industrial goods, and therefore places great 
importance on strong and efficient maritime industries. 
The Japanese government is currently investing 286 million ECU annually In 
ocean technology R&D programmes. R&D in shipbuiIdlng Is being carried out 
in Japan on a high-speed "Techno-superIIner" with a total budget of about 
72 million ECU, and on a highly reliable marine propulsion plant with an 
estimated budget of 15 million ECU. 
In 1990 the Japan ShlpbulIdlng Industry Foundation started drawing up the 
concept of a new-type offshore structure as part of measures to stabilize 
the business of shipbuiIding companies. The work involves research 
concerning ocean space development and utilization by use of large-sized 
floating structures. 
in the USA, a complex system of measures gives support to shipbuiIding and 
shipping, namely through the restriction of cargo and of national built 
requirements in respect of domestic trade (Jones Act). As far as shipping 
Is concerned, these restrict Ions run against the objective of a free and 
open market in shipping services. 
U) 
- 16 
Although the USA has been absent from the merchant shlpbulIdlng sector for 
about ten years, Its recent I nit I atIve - aimed at the el I mlnatIon of trade-
distort fve measures and practices in the shlpbulIdlng sector on a worldwide 
basis -Isa signal of the Importance It places on the construct ion of 
merchant ships at a moment when budgetary cuts are drastleally reducing 
the volume of new orders for warship yards. 
D. A NEW EUROPEAN MARITIME INITIATIVE 
D.I AN APPROACH IN THE FRAMEWORK OF THE COMMISSION'S INDUSTRIAL POLICY 
CONCEPT 
In the past, the Commission has undertaken and proposed a range of 
different inltI at Ives. Although some of these have been adopted, others 
are still waiting for the necessary approval by the Council. 
A comprehensive view of all the maritime Issues /s, however, st/11 missing. 
A new approach with real Impact for the whole of Europe's maritime 
Industries Is therefore essentlal. 
According to the Commission's Industrial policy concept^), the 
Commission's Intention can not be to create a substItute for efforts made 
by companies themselves. The Commission can only give special attention to 
those areas which play a key role in the economy as a whole. In this 
respect, the mar/time Industry Is given special mention In the 
communIcatIon on the EC's Industrial policy. 
D.I I TOWARDS A COHERENT MARITIME APPROACH - Action points 
Based on the analysis of future chal lenges and the current state of the 
EC's industries, several Interrelated areas have been Ident I fled as 
deserving special attention from the Community. These areas concern the 
basis of all maritime Industries, and are supposed to have a dominant 
Impact on their competItiveness, as they are also decisive In Improved 
exploitât ion of synergy effects. Strengthening them, via horizontal 
support measures, should be regarded as an urgent task. 
(1) COM(90)556 final, 16 November 1990, 
- 17 -
D.I 1.1 Business environment : achievement of the Internal market 
One of the most Important aspects of the Commission's internal market 
programme is the elImlnation of trade barriers. In the marine equipment 
industry, however, technical barriers to trade still exist. 
A draft directive Is therefore In préparât Ion and will harmonize technical 
régulât ions related to marine equipment used on board merchant ships. It is 
envisaged that the directive will Include marine equipment for which ft fs 
essentfal to promote the safety of life at sea, and for the protect ion of 
the marine environment from pollution by hazardous substances. 
D.I 1.2 Safety 
Maritime safety is an issue of great Importance. The Commfssfon is 
preparing a Communication covering a wide range of aspects In this area. 
A distI net Ion has to be made between navI gatIonal safety, safety on board, 
safety at work and safety of the environment. 
Maritime actIvIt les are one of the most exposed to different types of 
accidents. Fatal accidents are especially high with regard to transport 
and fishing activities. 
The Commission In Its White Paper will address the following Items: 
the Interpretation and Implement at ion of internat ional regulat Ions at 
European level, taking Into account existing Community legislation; 
improved safety on passenger ferries and envi ronmental friendly 
tanker designs 
Init/at ives In the universal appl icat ion of navigational aid systems-, 
more frequent port inspect Ions focusing on compllance with existing 
safety standards and observance of environmental and social regula­
tions and In order to avoid any unfair compet it ion through cost 
advantages when norms and régulât ions are not observed. 
/ul/gabah/fcK/NO/fconrounil 18/9/91 
- 18 -
As far as fishing Is concerned a study has shown that one out of two 
accidents is related to the ship Itself (safety of the ship) and the other 
is related to the activity of the fisherman (safety at work). This 
di stI net ion Is of importance as it Indicates that better equipment and 
better professional training are needed. The Commission Is preparing a 
directive on minimal requirements concerning safety and health at work on 
board fishing vessels 
D.I 1.3 R&D 
An integrated Community approach to maritime R&D should be envisaged. 
ShipbuiIders, shipowners and the equipment Industry should Jointly define 
their interests and should develop common strategies with regard to the 
increasing demand in technological Issues. 
The success of coopérâtIve arrangements will depend to a large extent on 
the gradual concentrât Ion and strengthening of R&D on a number of selected 
projects, Involving customers, manufacturers and suppllers. 
Europe's maritime R&D base should be strengthened through a coord mat Ion 
of European maritime science and technology R&D requirements. The 
identification of priority areas Is also advocated through a better 
coopérât Ion of the existing European R&D programmes (e.g. MAST, EURET, 
BRITE/EURAM, EUREKA (EUROMAR), etc.) 
D.I 1.4 Transport 
The potantial of waterborne transport - both maritime and inland waterway -
for relieving congested and envIronmentalI y harmful land transport should 
be fully developped. Attention needs to be paid to such aspects as 
container technology, Intermodamlsm and the intégrât ion of Industrial-
logistics with transport-logistics. The Commission is already carrying out 
work on the development of a combined transport network including maritime 
links, and the extension of tranpsort infrastructure policies and funding 
arrangements to the ports Is also being pursued, In recognitIon of the 
- 79 -
Importance of efficient ports with good connections to road, rail and 
Inland waterwy. These aspects will be among those to be covered In the 
fol I lowing White Paper on transport policy, mentioned above. 
D.I 1.5 Training 
Better training Is needed In order to reduce the number of accidents caused 
by human errors In the work place and at sea. 
Moreover, in order to strengthen Europe's maritime competItiveness, 
adequate training of manpower Is necessary not only in research but also In 
the industry, in the new technologies employed, including management and 
working practices, information systems, planning, and quality assurance. 
As the EC is not a low labour cost zone, it is necessary to rely more on 
the advantages of better training. Compet ft iveness, productfvIty and a 
high level of training always go hand in hand. 
The achievement of competitive maritime industries will depend on the 
willing coopérât ion - In accordance with EC compet it Ion law - of customers, 
manufacturers, and supply chain and research establIshments on a European 
basis. The recruitment of sufficiently welI-trained and motivated 
scientists and engineers and their further training will play a central 
role. 
This applies equally to all people working on board ship. An EC Directive 
is therefore being prepared and aims to: 
promote adequate qual IfIcat Ions for seamen and mechanics-, 
promote the harmonisât Ion of training of Community seamen and ensure 
the uniform appl Icat Ion of the rules laid down by the I MO-, 
guarantee navigational security and envIronmental protect Ion at the 
same time, by sailors with adequate qualIfIcatIons. 
- 20 -
D.I 1.6 Environment 
A better approach to maritime environment préservât ion is necessary. A 
clear framework for EC initiatives In this flels must be defined. 
ShipbulIders, shlpowners, equipment Industry and all sectors related to the 
port fact I it les should Jointly define common strategies for a better marine 
environment. 
Particularly worth mentioning are: 
the Interpretation and Implementation of IMO rules at European level, 
taking Into account existing Community legislation 
the promotion of a comprehensive policy on port reception facilities 
the promotion of new technological systems for survefI lance, combat 
and control of marine pollution either operatIonal or accidental. 
D.I 1.7 Competition In the EC 
Strict control of state aids Is a necessary condition for undlstorted 
competition. The 7th directive on state aids to shlpbulId Ing^^ has so far 
proved to be a very effective Instrument . Equally, with regard to shipping 
and the proposed EC register, regard Is given to the objective of achieving 
a real convergence, of the condlt ions of competition among Member 
StatesC2). 
Competition law also refers to trans-front 1er coopérât Ion, and here It 
must be remembered that national markets or European markets are not 
always the decisive markets, especially with regard to Joint ventures. 
For maritime Industrles, the concept of traditIonal frontiers Is not fully 
appl /'cable (eg flag of convenience, difficulty In applying Import duties, 
etc), so the concept of worldwide InternatIonal competIt ion may -
especially In some sectors - be of particular Importance when European 
coopérât ion undertakings In this sector are Judged. 
(1) JO L 380/27, 21 December 1990. 
(2) See "Financial and Fiscal Measures concerning Shipping Operations with 
Ships registered in the Community", SEC(89)921. 
- 21 -
D.I 1.8 International Dimension 
ShlpbulIdlng, and to some extent other maritime Industries, have been 
subject to strong unfair and subsidised competition from third countries. 
This should be elImlnated In order to create a free and fair International 
environment for European companies. 
The Community fs actively seeking - In the context of current OECD 
negotiations - an InternatIonal agreement against trade distortIve 
measures, Including unfair pricing practices, In the shlpbulIdlng sector. 
In thfs respect the Community as a whole Is assuming the EC's 
responsabi I ity vis-a-vis Its main International competitors. 
It Is equally Important to have a harmonised Community position, especial I y 
in the framework of the InternatIonal Maritime Organisât Ion (I MO). 
D.lll AN INTEGRATED EUROPEAN ANSWER 
The Implement at/on of the horizontal measures as described above would 
contribute to mar/time sectors keeping up with the newest developments, 
benefitting fully from the achievement of the Internal market, and better 
exploitIng all synergy effects. 
However, mar ft I me cha/1enges, relating to the resources of the sea, to 
pollution of the oceans, transport developments and InternatIonal standards 
for example can no longer be tackled on the basis of each specific Item In 
Isolation. Already today, but even more Importantly in the future, maritime 
challenges demand new strategies, which are based on the technical 
knowledge, the experience, and the R&D efforts of all mar/time fndustr/es 
and all related research Institutes. 
The different maritime Issues and challenges have thus to be recognised as 
parts of an overall maritime dimension and have to be dealt with 
accordingly. 
- 22 -
A new global and horizontal approach Is necessary - based on cooperation 
between the different Industries concerned, research Institutes, 
universities. Member States Administrations and the Commission. Only such 
a framework allows the maritime Interests of the Community to be pursued. 
In the EC a framework for an efficient exchange of Informât Ion through 
permanent dialogue between all parties concerned should be created. Areas 
of common interest to two or more of the maritime parties can then be 
identified and analysed at community level. These areas may, for example, 
include standards, research and development, port facilities or 
envi ronmental Issues. Closer vertical and horizontal coopérât Ion could 
result in the recognltIon of common alms, projects and market lead 
strategies. 
Against this background, an appropriate forum Is proposed to contribute to 
the définit Ion and the preparation of the details of this approach being 
Implemented. The forum should be made up of représentât Ives from the 
industrles concerned, research instItutes, Member States' Maritime and 
Industrial Administrât ions and Commission officials. 
As far as the Commission Is concerned, a group, composed of all the 
Dlrecto rates-Genera I concerned, could represent the Commission. 
With regard to the terms of reference, the forum - organised through a 
network of working groups - should : 
provide the framework for an efficient exchange of Informat ion 
between all relevant parties concerned; 
collect and analyse the common Interests of the various Industries; 
identify priority areas, where common interests do exist and where -
respect ing the subsidiarity principle - actions at EC level might be 
appropriate. 
These areas might for example relate to: 
Industrial maritime Impl feat Ions of global transport systems; 
common R&D projects, with the Involvement of users, producers and 
suppliers of technological equipment -, 
- 23 -
Imp//catIons for the maritime Industry of the national, EC and 
internat Zonal (including maritime safety and envIronmental) 
régulât Ions, and dlrectIves, 
transfer of technology between military and civil activities, 
Including R&D, improved use of existing military capacltfes for 
alternat ive uses; 
activities in fields which hold the key to future developments, for 
example In areas like resources of the sea, environmental technology, 
etc, ; 
évaluât Ion of recommendations for International safety and 
envIronmental standards; 
the need for standardisât Ion work at European level, quality 
assurance procedures for maritime Industries. 
E. CONCLUSIONS 
The Community Is aware of the Increasing Importance of the maritime 
dimension. Maritime matters are directly Involved In the EC's economic and 
political Interests. 
Europe's maritime interests are too wide-ranging to enable the maritime 
industries to safeguard them on their own, especially as some of them face 
severe adjustment problems. 
Given this situât Ion, the Community needs to strengthen Its maritime basis 
in order to be In a position to benefit from future developments In the 
maritime dimension. However, this can not be done by the Industry, Member 
States or the Commission individually. 
Consequently, better Internal policy coordlnatIon, as well as an improved 
understanding between the different companies In each sector concerned, the 
different maritime industries, Member States and the Commission altogether 
is needed. 
It Is therefore proposed to create a discussion Forum, made up of all the 
parties concerned, with the following tasks: 
define more precisely the scope of the global and horizontal 
approach, by Identifying the priority areas, and the types of actions 
to be developed, In order to Improve the competitiveness of the EC 
maritime industries within the Community as well as on world level; 
- 24 -
assess the appropriate method for the Implement at Ion of these 
act Ions. 
The forum should present a report to the Commission 9 months after approval 
of this commun I cat Ion. 
Following this report the Commission will examine whether a further 
commun feat Ion to the Council and the European Parliament would be approa-
prlate, In order to propose concrete actions of common Interest to the 
maritime industries. 
ANNEX 
• Shipbuilding 
• Merchant FLeets 
• World Seaborne Trade 
• Aquaculture 
2S 

Shipbuilding 
World Production Of Ships 
Order Books 
Newbuilding Prices 
Shipbuilding World Marketshares 
Employment 
26 

World Production of Ships 
in million cgt 
T 1—"—i "—i—"—i—'—i—'—i—"—i —r 
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 
South Korea EC Japan World 
Lloyd's Maritime Information Service 
Production of ships : 
shares in world production 
100% 
80% 
60% 
40% 
20% based on cgt 
European Community 
l 1 i L 0% 
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 
Lloyd's Maritime Information Service 
2? 
Order Books 
(in million cgt) 
Thousands 
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 
South Korea EC l~~~~] Japan World 
Lloyd's Maritime Information Service 
60 Newbuilding Prices 
(in million US-Dollar) 
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 
— M/T 80 BC 60 -*- RO-RO 60 ~&- LPG 24 
Fearnley'8 Review 1990 
a* 
Shipbuilding-Worldmarketshares 1990 
based on cgt 
Rest AWES E^-PDA 
4,8 2,9 
Lloyd's Maritime Information Sarvlca 
Employment 
construction of new vessels 
Thousands 
140 
120 
100 
80 
60 
40 
20 
0 I 
i 
« I 
I I i 1 I I 
»_i 
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 
r EC-10 EC-12 
National sources 
29 
Merchant Fleets 
The Community Fleets 
Merchant Fleet - World and EC 
Estimated World Fleet 1991-1994 
3o 
The Community Fleets 
Member States' Fleets 
by flag Member States' Fleets 
by flag 
1981 1982 1983 1984 1986 1986 1987 1988 1989 1990 1981 1982 1983 1984 1986 1986 1987 1988 1989 1990 
Italy 
Lloyd'* R*gl*t*r of Shipping Spain Portugal 
Lloyd's Ragittar of Shipping 
Member States' Fleets 
by flag Member States' Fleets 
by flag 
-4 I 1 4_ 
_l . i_ 
1981 1982 1983 1984 1986 1966 1987 1988 1989 1990 1981 1982 1983 1984 1986 1986 1987 1988 1989 1990 
Qarmany Balglum 
Lloyd'* R*gi*t*r of Shipping Lloyd'* R«gl*t*r o( Shipping 
31 
World and EC Fleet 
million gt 
500 
400 
300 
200 h 
100 
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 
Lloyd's Register of Shipping 
Estimated World Fleet 
million dwt 
700 
600 
500 
400 
300 
200 
100 
0 
1991 1992 1993 1994 
Oil tanker EZD Combined carrier iHi Bulk carrier Œ22 Other 
Fearnley'8 Review 1990 
32 
World Seaborne Trade 
World Seaborne Trade 
in tonne-miles 
Economic Growth And 
Seaborne Trade 
3Î 
World Seaborne Trade 
(in billion tonne-miles) 
Thousands 
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 
Crude Oil 
nn coai L I Oil Prod. 
EZ) Grain Iron Ore 
Other 
Source: Fearnley's Review 1990 
Economic Growth And Seaborne Trade 
(average annual growth rates) 
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 
+~ QDP OECD 
*- Sasborns TrsdJ" Imports OECD 
Commission servies» 
34 
Aquaculture 
7 Aquaculture-Production 
7 Shares in world production 1985 
35 
Aquaculture 
World Production 1988 (1) 
14 million tonnes • 14% of fishery 
22 billion US$ 
EC Production 1989 (2) 
847.000 tonnes - 1,6 billion ECU turnover 
Shares in world production 1985 
(total production, tonnes) 
Asia 78,9 N. America 5 
turope 10,9 
Other 1,4 
USSR 3,8 
1) Fao, Commission services 
2) Association Européenne des Economistes de la Pêche 
3) Aquakultur und AquatechnIk, Sylt 1989 
36 

ISSN 0254-1475 
COM(91) 335 final 
DOCUMENTS 
EN 10 
Catalogue number : CB-CO-91-401-EN-C 
ISBN 92-77-75807-4 
Office for Official Publications of the European Communities 
L-2985 Luxembourg