A new report by the Shipbuilding Council says that as many as 1,400 ships could be lost to shipwrecks every year if nothing is done to improve shipbuilding and safety standards.
It’s the biggest threat to the future of the industry and the second biggest environmental disaster in human history.
The report was commissioned by the Government and the Maritime Industry Association (MIC) and released Monday.
According to the report, “no one knows what the consequences of such a tragedy will be and how to mitigate them,” said Mic president and CEO Jim McCauley.
He added that while shipbuilding has grown significantly over the last decade, it still lags behind many other sectors, including infrastructure and manufacturing.
“Shipbuilding is a high-margin business,” McCauly said.
“You have a lot of competition in the marketplace, so there’s a lot that you can be doing to increase your margins.
But we’re not getting anywhere.
He also pointed out that the current shipbuilding infrastructure is “very, very poor.” “
What we are doing is putting a lot more resources in the hands of the shipbuilder and shipbuilding engineers to try to make things better, and we’re going to have to make that happen,” McCausley said.
He also pointed out that the current shipbuilding infrastructure is “very, very poor.”
“What you can get from shipbuilders is a really small ship that you have to carry for a long time,” McCaulley said, noting that the cost of fuel and maintenance are not cheap.
The Shipbuilding Commission of Australia estimates that the country’s fleet could lose at least 1,000 ships a year due to structural failures, ship collisions and other ship-related accidents.
“I would expect that number to go up substantially if the numbers of ships going under are not increased,” McCauerley said in a press conference.
“The risk is that you’re going up to the point where you have a ship that has a very high number of accidents, a very large number of structural failures and that can become very unstable.”
He also said the industry has become too dependent on the federal government for funds.
“There is a tendency for governments to spend money, but they also have to spend the money,” he said.
This has led to an “unhealthy reliance on the public purse,” McCaauley said of the lack of accountability for the industry.
“When you have governments spending billions of dollars and people are getting caught up in the process, then the process is not fair.”
The report found that “no single sector has had a meaningful impact on the number of shipwreshes that have occurred.”
It’s an important issue, McCauleys comments come as shipbuilder Lockheed Martin has revealed that it has lost around 2,500 ships a decade to shipbuilding accidents, most recently in 2014.
While the industry is in its infancy, the report noted that the federal Government has been “significantly reducing funding for shipbuilding for decades.”
“The Federal Government’s overall shipbuilding funding fell from $7.8 billion in 1990 to $5.5 billion in 2010,” the report said.
It noted that while the number and quality of shipbuilding contracts were rising, they “fell sharply after 2007.”
It also noted that “the average cost of a shipbuilding contract is $1.5 million to $3.5 to build,” with a “trending downward trend” over the past 10 years.
The Government’s recent cuts to shipbuilder funding also “caused significant structural problems that contributed to the decline in shipbuilding activity.”
“Our industry is experiencing an economic crisis in the face of a continuing and severe downturn in the Australian economy,” McCaughley said during the press conference on Monday.
The Council of Australian Shipbuilders (CAS) and the MICA were joined in the report by representatives from the Australian Maritime Safety Authority, which oversees shipbuilding. “
And the Government should be leading the way in making sure that we get the funding that we need to support the Australian shipbuilding sector and the rest of the economy.”
The Council of Australian Shipbuilders (CAS) and the MICA were joined in the report by representatives from the Australian Maritime Safety Authority, which oversees shipbuilding.
The CAS is responsible for inspecting ships for safety and quality and for overseeing the shipbuilding program.
The MIC is a non-profit industry association that represents shipbuilders and shipyards.