Namura Shipbuilding will construct a large dock in Japan for the first time since 2017. The shipbuilding industry is one of 17 key investment areas identified by the Takaiichi administration's growth strategy. The Japanese government plans to invest a total of 1 trillion yen (approximately $9 billion) by 2035 to double domestic shipbuilding volume.
According to the Nihon Keizai Shimbun (Nikkei) on August 20, Namura Shipbuilding is set to build a large dock in Imari Bay, Saga Prefecture. Due to rising construction and equipment costs, the total investment is expected to reach around 100 billion yen (approximately $900 million), with subsidies from the government and local authorities also being allocated.
This will be the first new large dock established in Japan since Imabari Shipbuilding built a dock at Marugame Shipyard in 2017. The dock constructed at that time measured approximately 600 meters in length and 80 meters in width, with an investment of about 40 billion yen (approximately $360 million).
Namura Shipbuilding's main production facility in Imari currently operates a large dock measuring about 450 meters in length and 70 meters in width. The recent increase in ship orders has led to high utilization rates, prompting the need for additional production capacity. Japan's lack of shipbuilding capacity has been identified as a major challenge in the government's push to expand shipbuilding volume.
Once a leader in global shipbuilding by volume, Japan lost its top position to South Korea, which has benefitted from government support since 2000. Recently, China's rapid rise has further diminished Japan's market share. The shipbuilding industry is considered crucial not only for Japan's industrial competitiveness as a maritime nation but also for economic security.
In response, the Japanese government is developing a roadmap for revitalizing the shipbuilding industry and rebuilding its production base. A key objective is to resume the construction of Japanese liquefied natural gas (LNG) carriers, which has been halted since 2019.
In June, the Japanese Growth Strategy Council included 'Japanese LNG carriers' in its list of public-private investment targets. Namura Shipbuilding, along with Japan's largest shipbuilders, Imabari Shipbuilding and Kawasaki Heavy Industries, plans to resume LNG carrier construction around 2035, aiming to produce 3 to 5 vessels annually.
Kawasaki Heavy Industries' Sakai Factory in Kagawa Prefecture is expected to be the primary site for LNG carrier production. However, it is anticipated that the Sakai Factory alone may struggle to meet the target of 3 to 5 vessels per year. Therefore, the new dock at Namura Shipbuilding is likely to serve as an additional site for LNG carrier production.
The new dock will also explore the construction of vessels for transporting next-generation energy sources, such as ammonia. This move reflects Japan's efforts to expand its production base in the next-generation ship sector in light of decarbonization and economic security initiatives.
Namura Shipbuilding, headquartered in Osaka, primarily constructs large vessels such as bulk carriers and tankers at its Imari facility. The company also engages in ship repair operations.
* This article has been translated by AI.
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