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$200 Billion Needed Over Next Decade For World Fleet Replacement Shipowners, shipbuilders and bankers were told at a recent meet- ing in London that as much as $200 billion will be needed over the next decade to replace the world's aging shipping fleets. Rex Harrington, of the Royal Bank of Scotland, fore- cast that capital markets would play a much greater role in funding fleet replacement programs. Addressing over 300 delegates at a seminar organized by City Univer- sity's International Center for Ship- ping, Trade and Finance, Mr. Har- rington said: "In order to raise the substantial amount of money re- quired, the industry will need to be able to assure serious long-term in- vestors that the returns will be less volatile than in the past. There will need to be a much greater collabora- tion between owners and charterers to achieve the right climate for the amount of investment required." Shell International Marine man- aging director Juan Kelly warned the seminar that a "pressure cook- er" effect was in the making, with the price of newbuildings outstrip- ping the slower pace of increase in freight rates. This inhibited major ordering of new vessels and could lead to a tonnage shortage and, in turn, a dramatic rise in freight rates. Mr. Kelly urged all concerned to exercise "universal self-constraint." He said that an appropriate re- sponse would involve "building new ships to replace operationally un- suitable or unserviceable ones, in numbers and of a size which main- Circle 216 on Reader Service Card DEL GAVIO MARINE HYDRAULICS, INC. SALES • SERVICE 'CONSULTING • PARTS Complete Repairs On All Types of Electro Hydraulic Steering Systems and Deck Machinery Hydraulic Pump Testing, Rebuilding For Certification 24 Hour Service, Worldwide 207 West Central Ave., Maywood, N.J. 07607 Telephone: (201) 843-4700 Telex: 132610 DELMARINE Circle 228 on Reader Service Card Maritime Reporter/Engineering News
