The Dutch shipbuilding industry receives a 250-million-euro boost. Institutional investors and the Dutch province of Groningen now offer this financing opportunity to Dutch SME entrepreneurs who build or modernise short sea vessels.
Today (27 January), State Secretary Mona Keijzer (Economic Affairs and Climate Policy) gives the starting signal for this so-called Nesec Shipping Debt Fund (NSDF) with a state guarantee. The guarantee is part of the Supplementary Action Plan for SME (Small and medium-sized enterprises) financing (Aanvullend Actieplan mkb-financiering).
‘The Netherlands has been a country of seafarers for centuries,’ says Keijzer. ‘The maritime sector is still one of the pearls of the Dutch economy, with an added value of 26 billion euros and work for 275,000 people. Within this, shipbuilding and shipping are a source of innovation and export opportunities. The government is therefore happy to support these Dutch SMEs by providing guarantees for this fund.’
Meeting emission requirements
Many shipowners are struggling with outdated ships, which do not always meet the latest emission requirements. The Nesec Shipping Debt Fund focuses specifically on the purchase of new or existing short sea vessels, or their modifications. For example, to meet new ballast water requirements, limit sulphur emissions and other emissions.
Boost for short sea shipping shipbuilding
Short sea shipping is the transport of passengers or cargo over the seas and oceans, where these waters are not completely crossed. Between 2012 and 2017, Dutch shipbuilders in the North of the Netherlands built 112 short sea vessels. The forty shipping companies that are active in this field now have extra access to credit to build modern ships or modernise existing ships. This will benefit employment and the economy in the northern part of the Netherlands.
Institutional investors
Nesec was founded in 1946 to promote the export of ships built in the Netherlands and to provide loans to shipowners. The new fund provides mortgage-backed loans for ships in the short sea sector. With the help of the Dutch State, the Dutch Waterschapsbank, the province of Groningen and clients of both NN Investment Partners and Waterland Investment Services have agreed to invest.
As a result of the cooperation of the aforementioned parties, the NSDF has been fully filled and is now open to applications from shipowners. The state guarantee covers eighty per cent of the total NDSF.
Picture: Launch of cement carrier Kongsdal (by Royal Bodewes, cover picture of SWZ|Maritime’s November 2019 issue, which contained a special about the shipbuilding industry in the North of the Netherlands).
