Brodotrogir Proves Shipyards Can Survive without State Financial Support

Total Croatia News

Croatian shipbuilding goes from strength to strength.

Brodotrogir is the first of the privatized Croatian shipyards whose restructuring process includes the European Union, but to which the state does not give any financial support. For the last four months, the Trogir shipyard has been without income from the state treasury, reports on October 18, 2015.

It is not anything unexpected, but a result of a contract between the state and the new owner Kermas Energija regarding the dynamics of the restructuring process, which is different from the processes agreed for Brodosplit and Treći Maj shipyards. The two shipyards will be receiving monthly grants from the state until the end of 2017. In contrast, the offer which Darko Končar’s company Kermas Energija submitted for Brodotrogir included investments in the expansion of activities, namely in the construction of a marina. So far, Brodotrogir has invested 680 million kuna of its own money in the restructuring process.

Managing director of Brodotrogir Nenad Končar points out that successful operation of the shipyard without the state aid was the primary goal of the privatization process, and the fact that the shipyard is already successfully operating without the state aid shows that it is possible. “That is why we, after all, have entered into this business in the first place”, says Končar, who however adds that the transformation process has been more difficult than they had planned at the time of the conclusion of the contract, primarily due to the unfavourable conditions on the world markets. Hrvatska Brodogradnja Jadranbrod, which is monitoring the shipyard restructuring process for the Croatian government, is satisfied with implementation of the process in Brodotrogir. The order book in that shipyard now includes four ships.

Končar is particularly proud of the construction of their second chemical tanker. He is especially enthusiastic about the Brodotrogir’s project office which worked on the tanker, which is, according to his opinion, “if not the best, then among the best in its class”. It is a big step forward in terms of innovation, which makes it possible to transport more cargo in smaller ships. Thanks to innovations, they have managed to make their ship 25 to 30 percent more competitive than similar ships constructed in South Korea.

There will be other projects in the near future as well. The shipyard is preparing for the construction of a new model, a multi-purpose ship for transportation of cargo, which is a project that will include a partnership with a Dutch company which has the necessary experience in this segment.


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