The CLIA Spain column
By Alfredo Serrano
Managing Director CLIA Spain
Article from CruisesNews magazine no. 71 – December 2024
Boosting European competitiveness and how the cruise industry is part of the answer
On May 9th, the European Union will celebrate the 75th anniversary of the Schuman Declaration. It was then that the French Foreign Minister proposed the creation of a European Coal and Steel Community (ECSC), the precursor to what is now the European Union. The Old Continent was still recovering from the wounds of the Second World War, and this alliance aimed to minimize the likelihood of another war on its own soil.
During this time, the European project has progressed both in the number of member countries and in terms of integration. The path has not been easy. Just looking back a decade or so clearly demonstrates the difficulties: the financial and economic crisis, Brexit, the pandemic, and the war in Ukraine are just some of the major challenges it has faced. The horizon does not appear much calmer: an unstable geopolitical landscape, a changing trade environment, and the climate emergency. Indeed, to paraphrase the United Nations, this is the decade for action.
In this context, the European Union faces a competitiveness problem, recently highlighted by the former president of the European Central Bank, Mario Draghi, who also points to the need to reverse the situation so that Europeans can continue to benefit from the values that are the raison d'être of the Union: prosperity, equality, peace and democracy in a sustainable environment.
And here our industry has a lot to contribute, specifically through the construction and repair of cruise ships. It's no coincidence that almost 100% of the ships sailing today were built in shipyards with European passports, located primarily in Germany, Finland, France, and Italy. Looking at the present and future, 80% of the commercial value of their order book corresponds to assets commissioned by cruise lines. Specifically, in the period 2024–2036, their investments will be around €60 million, a figure that is expected to increase thanks to new orders.
Behind the construction of a cruise ship, there are thousands of professionals. In addition to those directly linked to the shipyards themselves, there are those who form part of a dense and diverse supply chain (also European): from the companies that provide the steel plates for the hull, to those that supply the engines, technical equipment or furnishings, to mention just a few examples.
Furthermore, Europe is home to shipyards specializing in the repair and refitting of vessels; companies that are global leaders, such as the Spanish firm Navantia. Since opening this line of business back in 2011, around 140 cruise ships from 20 companies have already passed through its facilities, generating nearly 10 million hours of work. It is estimated that each repair involves more than 500 jobs and the participation of some 30 local companies. This success has led Navantia to surpass its competitors in 2022 and 2023 in terms of the number of cruise ships repaired.
Beyond this palpable economic boost and the resulting wealth creation, it is vital to go a step further and highlight how this commitment to European shipyards fosters the development and maintenance of complex and highly specialized know-how, a differentiating factor that enhances their competitiveness. Furthermore, it drives technological innovation so that the ships built today meet the environmental requirements of tomorrow, thus advancing their ambitious environmental agenda that gives decarbonization a leading role.
But that's not all. This vast knowledge can be transferred to other sectors, such as the naval military industry, and boost the strategic autonomy that has been so widely discussed lately.
The European Union possesses within its borders a critical asset for addressing the challenges related to competitiveness and environmental sustainability. It is up to its newly established institutions (the Commission and Parliament) to maximize the benefits that the construction and repair of cruise ships can bring; because we can be part of the solution.
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