KEY POINTS:
Northland's boat-building capacity is expected to be boosted to include steel-hulled yachts and luxury "mega-yachts" under a $20 million plan revealed yesterday.
Among the contributors to the plan - known as the Whangarei Marine Engineering Initiative - is the Government, which is putting in $2 million.
The grant was announced in Whangarei yesterday by Economic Development Minister Pete Hodgson.
"Northland already has world-class capability in the marine sectors, and has identified an opportunity to extend this expertise to larger, higher value projects in both the ship and yacht building sectors," Mr Hodgson said.
The Whangarei Marine Engineering Initiative would enable Northland to move into more specialised areas, including large steel- hulled vessels and luxury steel and alloy megayachts.
The region's repair and re-fit capability would also be extended, enabling it to take on vessels up to 95m long.
The scheme is expected to cost upwards of $20 million, much of it coming from the private partners - including Ship Projects NZ, a consortium of marine industry firms.
"This has the potential to transform New Zealand's capability and offerings to the international shipbuilding and heavy engineering markets," Mr Hodgson said.
The Government's $2 million contribution, made through New Zealand Trade and Enterprise, would help ensure the region had the infrastructure and marketing needed to make the most of the opportunity.
It also cleared the way for other parts of the initiative, such as more marine training courses through NorthTec, to be negotiated.
Northland economic development boss Brian Roberts, of Enterprise Northland, said the new, collaborative approach by the marine engineering industry could open doors to major international ship- building contracts.
Ship Projects' managing director David Penney said other countries had developed immense ship- building capacity in recent years and had lower prices, but Northland could demonstrate an edge with specialised vessels .
For example, the oil industry needed complex vessels, and was less price-sensitive. Superyachts were another option.
Another Ship Projects director, Shane Culham, was overseas seeking such work and Mr Penney said the company would aim for projects worth $30 million and more.
- NORTHERN ADVOCATE
