The world shipbuilding industry is forecast to spend $5.3 billion on marine propulsion systems in 2004 and this is set to rise. Over the period 2004 to 2008, $27.2 billion is likely to be spent compared with $22.4 billion over the previous five year period – an increase of 21%. These are among the findings of the latest edition of The World Marine Propulsion Report 2004-2008, published by analysts Douglas-Westwood using vessel data from Lloyd’s Register - Fairplay.

In 2004 alone, engines are likely to be installed with a total power output of 18 GW. According to the study analyst Barney Parsons, “this is the equivalent of the output of about 15 nuclear power stations”. “The world shipping and shipbuilding industry is currently enjoying a strong upturn. World economic growth is buoyant and it is expected to remain strong in the medium term boosted by the very strong growth of the Chinese economy and to a lesser extent in other developing economies” said Parsons. “World seaborne trade has increased due in part to a boom in demand for commodities such as oil & steel. The commercial shipping industry has become more profitable than during the previous decade and confidence has grown. The overall result has been a surge of orders for vessels and yards currently have full order books. We expect record years ahead with shipbuilding output exceeding 40 million gross tonnes in 2005 and 2006 with compensated gross tonnage (cgt) output in 2006 of 26 million. The total value of shipbuilding output is expected to peak at around $45 billion in each of these two years with 1,864 vessel deliveries and over 2,850 main engine installations," said Parsons.