A decline in active Turkish shipyards?
An update on the state of Turkey's new-build sector…
One of the most-read pieces of intelligence published on SuperyachtNews last year questioned the stability of the Turkish new-build market. Based on data provided by The Superyacht Agency, the article argued that the market looked to be heading towards a period of consolidation, with the number of shipyards far outweighing a decreasing number of deliveries in recent years.
At the time of publication, the Turkish order book looked healthy, with 24 projects scheduled for delivery in 2020 and 16 projects scheduled to be delivered in 2021, compared to a total of eight projects delivered in 2019. However, as mentioned at the time, these numbers seemed unrealistic considering that the 24 projects expected for 2020 were to be delivered from 14 different shipyards, when only eight shipyards delivered eight yachts in 2019, and nine shipyards delivered 10 yachts the year before.
The scepticism turned out to be justified: by the end of 2020, Turkey delivered just eight projects from six yards – a third of what was scheduled. Theses eight deliveries were made by Mengi Yay Yachts, Venture Yachts, Yildiz Gemi, Turquoise Yachts, Tansu Yachts and Numarine. It is worth noting that Perini's Yildiz Gemi shipyard was sold to new owners earlier this year and does not intend to resume the construction of yachts.
With 38 projects currently in the Turkish order book, and 21 of those scheduled to be delivered in 2021 from 15 yards, the same scepticism can be applied. In fact, according to The Superyacht Agency, there have been no deliveries made out of Turkey yet this year.
Of course, it is important to note, that the overly-optimistic order book is also reflective of the fact that a significant proportion of Turkey’s new-build fleet is built on speculation. According to The Superyacht Agency, 37 per cent of Turkey’s current order book is being built on speculation and, by their very nature, these projects have uncertain delivery dates that are dependent on an interested client committing to a purchase.
It’s early days, but delivery numbers in the past few years indicate that the Turkish new-build market might have settled on a new level of consistency of around eight deliveries annually. With many projects being built on speculation, it’s also possible that an uptick in sales could quickly bolster these numbers. However, with a consistently high ratio of shipyards to actual deliveries, compared to a decade ago, it’s still a concern that the number of shipyards in the country is not sustainable to support its domestic supply chain.
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