oe PNP oreo PUM ASL) COUNCIL WORKING PARTY ON SHIPBUILDING COMPENSATED GROSS TON (CGT) SYSTEM [esmeminectairreenteis ee | COAGANISATION FOF ECONOWIC-CO-OPERATION AND DEVELOPMENT 2007[ANEW COMPENSATED GROSS TON (CGT) SYSTEM -2007 BACKGROUND 1, The campensted gross tons (eg) concept was fint devised ty shipbuilder sssocistions, and doped by the OECD Council Working Pary on Shipbuilding (WPS, he 1970s to prove a more fctrate mess of shipyard stig thn could be achived y the ust gros ton (and dada ton (ve) menses 2, Thecanept undensnt a numberof revisions, with she pesca s)tem inroduced in 1984 and row rectly updated in 1994. Since tht time the shiptiler associations have undertaen a jor ‘herbal of the cone in oder 10 improve arcurary and to bet elet changes ia bah shipbulling signs and working methods in shipyards 3, The new eg tem deseibed in tht document wat jolly developed by the Community of European Shivers Associations (CESA), the Shipbuilders" Astociion of Japan (SA) and the Koren ‘Shipbuilders Asian (KSA), who tgster represent srund 75% of world shipbulng ouput. The gt systam is wicly used inthe tipi, and ere hasbeen an expectation fo Sot tine iat {revson of the extng system woul be nderaen 4. Asin the pas this now cp system has been adopted and promulgated by the OECD Coun ‘Working Pary en Shipbeleng in oreo pve the sem a said bac for i contin widessd use Within the industry” The Working Paty decked hat the new system would come nt Tore ek "ania 2007 ‘This dzeument ease guide for practioner, ad provides died information onthe concets tehind the new sa system as well es the formula (instead of th coins that were wed inthe 018 system) used to convert the gress fon (2) measurement of veses fo the compensated gross ton (6) cpivlent ‘THE NEW CGr SYSTEM As wel as gig the deals ofthe new system tis documen alo reflects ideas, cones and some fas Jor thase eres in amor fndametal planation of he em. ‘The purpse of he og stem © The question of estabishing a consistent unit of measurement for new bulking production by Shipyards was considered st metnos i 1966 and 1967 betwen the Carmunlty of European Shpyarcs ‘Asocains > CESA (ha ine named the AStcion of West European Shipbulldes~ AWES) andthe Shipbuilders Associaton of Japan =the SA.” jo sien for clcuaiag compensied rss vomase (ea) was invodiced bythe assoiaons in 1968, and this was subsequently adopted and omalzated by the OECD.1. Since en, a numier of revisions have een anderen. These have tan info acount the velopment of shiping technology and new ship pes bul the scope and defntion of compensated fomnge bas been unchanged. hat “Compomated gas tomage, fi awit of menarement intended 0 provide a common y to reflect the rclathe vipa of merchant shipbulng acy tn large cageregater sch as "Regione cr "Groups of many ard 4. The etsysen is statistical tol developed inorder to erable a more asurte macro-cenomic ‘valuation of shipbuilding worlond than is posible on ape deadweight fons (Bx) oF goss Tons (}) ei 8. Staisicninfermation 9 ne shin completed is valle on country or lobal basso ros tonsa well as pry i deadweight fone pres fa 0S tos are avaiable Fer al ship pes, bt nthe ‘numberof manbeur the uie of materials andthe amourt of yaréhardware used in then production Resources used tobi ne fos tn fer widely wit the sie nd ype of ship. By mailing Faures Ings tons with et coefficients, whieh reflect the work content ofeach type and size of ship, Phew comer te ever changing prodct mix lo ot gues, whic feet ith some accuracy trol shipbuilding tity. 10, However, he spt hs some imitations, 8 the aero-2canomic fess ofthe sie has mest hat censia simplietons have boen necessary, and If apled for microeconomic evaluations the ‘Sompented one yer mig ge misleading resus, Inirducon 11, The stom af conversion coflcents far cleulating campensated gross tons tht is eins {eplaed by thee 3 em was lord by CESA and te SA during 198283, and implemented by the ‘OECD in 1984 thas ice heen eenpisel ss superior co ros tonsa ol or mexsaing workload and ‘unt of shiva, 12, At tha time it was ako anticipated that the dovelopment of new ship oes, and of dew ‘hpbildingtecnolgy, would fom time to time cre the need fer revision ofthe system. Such 3 evtton became never following developments shipouling during the 1980s, and in 1983 CESA (nd SA revised the gtem though a ser of portal and inermedate revisions of seesed ext [Sheficlnts These wee speed to an promulgate bythe OECD in 1994, 13, Furor works since been underaken to further npove and simplify the ct sstem, while t the same ine sesking © rin eily by preserving the macr-seanomicseope ofthe system 4. ‘The Kore Shipbuilders Asselation the KSA took pat inthis akon werk Digfcties In th evasion of et factors 15, Ava fist glace. the calculation of et factors cems to Bo a simple task: foreach ship spe, and Ship size. collet inforaton onthe workload nevesary 4 lls gross tn, relate these Go tne ship type, a the ress wl be te et fcr, 16 However, whem i comes oda, racially no shipyard bls ship in dhe same Way its Competitors,” On a the major siferences the production ph Fé he amount of pars and bicks produced inthe shipyd relative tothe amount whic is subcontracted wo ouside supplies17, The tational style of cosmcton i where yards build ships by buying incl aw materials, cd handcatng even the al for wooden constrains within the yard, whect nadern pads may bast ‘hei production to a large exon on ascnbling large socUors of scl Blocks proguod by exeral Supls. In some cass evn whole hulls may be outoureed. AS a consoquenc, the man-hours Used ‘thin ech yardwil ifr widely in these cas. 1% Simin he degree of rationalisation andthe rnge of shpbineequpment, sch as raes snl machie tons, wil vary considerably and these wil alo inivenoe the manvours necessary fo the building ofa specie ship 19. For shis ofthe same sio and type, differences in hull form, maximum speed andthe means of ropulsion, the equipment and quali evel wil al rs directs of workload forthe bling of 2 Single gross ton 20, Keeping in ind thatthe purpose ofthe ca fate is alow the dairy of cen conclusions ‘tbe macrscanomle level the associations decided to ese the nan of ship types and eanvesion {ctor toa mangeable numbers and to accep ta akogh ths wil produce resus which are suffer eccrte For the urpse fr which they ae intended they wil not be erect 21, shoul aba be kept in mind tat most ta sources ed fr autos coetsin ony pat of ‘the del infomation wich maybe need for more dtl evaluations. 22. Ove wy to onercoe the problems esting fm the diferencia production depth iso define ‘cermin rouctn depth us an averase and then based en this sarin pinto caelte thee faces 3 ‘word expressed in man outs) pr gosto, 23.__A difent methodology was used inthe clelton ofthe original eg oeclats. There, a ‘ean ype of vessel was defined asthe base and vena compensation acer of 1. Te eave workloal [er at fr her pes of esses an sie, in proporin Yo hat Bas ship. was then used to calle index ures. 24, Wey be sued in all caes tht the predation depth ofa cern yard i more or Hs independent ofthe type ead ie of hips which ae produced, 25, has been demonstrated on ribs tht he evisting gt coefficients erable the drawing of ‘tain consis on man-hours for sviual yards oF groups of yards with similar production depth Based on cat calculations, a relationship as ben found between tar-ors and cyt produced fo the specie Jardin gestion. This proves the value ofthe preseat stem. 26, However, its auo been shown tat one of the main problems in dawing these concsion is ‘he arma in wh the factors real. Deo sever! difcules the ime of the evelopment of ‘he present xt coocents it was nly possible to pest them in a simple able pit into types of ships, ‘ith he effet esi ofthe vessel being accounted for by sep calculations, which ied the diferent gt osfcens These steps took into accourt the prevaing vessel sizes atthe Cie, and relevant eit ‘coecentswerestabised for eye sizeof ship in ech group 27. __Amineriable consequence ofthe sep funtion approach was tha for ships with a tonnage near ihe size boundaries = pateally for sale sips = hs produced some inacurcis For example, the talultd et ofa passenger vase witha planed six of? 980, elvted wih tonnage of 1080, ‘oul be redased rm 29650 eto 20 100 et ew thi lately sll ints in gross toon28, Furbonmore, ews fee cfcets fo the comparison of prosctin eine enpressd 3B ouput por year snc numberof employes for diferent shipyards (a meat often found even in ‘SEiots piiculon), is mseading longs the production depth ofthe yards being compared isnot {akon into account A yerd or a rnp of yard with fw production depth would wrongly appear to have @ ‘ih efisiney compare! oad wi igher proton dep. he comparison ony takes to acount the gt delvered na year vied by the mumber of dee employees of those ya 29, seme aprorite that a revision should ake ino sesount not ony the infences of Cerinolgy,e double hulls eter ceologially endl design fetes othe shift difeent LNG {Enkccoruccens: tt ln havoluce a arse sd sytem im plate ofthe exising one based cn Step [Rms Inrducing ure Sued sytem would nt only inpeove accuracy ul woud also reduce the ed for og eviews in ert compensate Forte eect of ehangs inthe size ftypial ship in the ‘iterent chip pe rou Sa, The ew cuve bse sistem tht hasbeen opted lo ses gos omnes (g) he bess For al {eh caclatons. rater than te Terme: prouping of vessels according to sie dt measurement. This is ELGG ny cscs Int gues ae ot ent comparable a the announced igre maybe based on Cine sonon, summer ov winter drs er acating esi dra al ares which ae not ess \o check. in advent ese of some vessels uch as passenger ships and oternor-carzD cari Sp dt mensremens steno ovale, fit which eested some problems wih te existing yen, 31, Therefrethe asscitions deco ta the base er the new psem should be 3038 005 (at, Chick are sve forall sip pos, Kis seknowledged tht some exemptions sill apply to the {tctaien of for some ships ational a costal wats, but these will et grey ale he revised catsstem 52. Another wea pin in he present opt sytem & the deition of Ship types. Fr example, many ‘todays general ean wos far removed rom the old ier or even the Liber type thet replaced tom and ae now mare similar o bulk carers, Al many so-called product tankers may bave more lary witha simp tanker than wi chemical tater, wih which they are grouped inthe existing 53. Acar review of ship type easeaton was therefore underaen, nor to miniise these dtcukies inthe propesd revision The new sytem 34. Twomnin cungeshave been made compared tothe exiting metho — stead table of effets, depending on ype and dt sie othe ships, the ne ‘alti bated on a frm, stad dt asthe bse forthe choice of the coterie whale syste snow based ong38, Thenew formal i cgi=at gt wher A represen he influence of sip type and B she inuence oF Sip size and tis the goss tonnage ofthe vase A bre User Guides given inte Ante otis document. 36, The AandB factors are sown in he able Blow. inp sof Tankers ati =a JUG carriers a ast rere BO tegret noon cov it 37, Beside the change from a matrix system to a Ferula based stem, it has to be ensone that inthe new system pret tankers are now grouped together wih ol tankers, whereas in theo sytem they wer grouped with cherie tankers 38. ___As well in developing th proposed new cpt system, an effort has been made 10 main 2 ‘certain eve of steal contin between the tw0 2S Naber of ship pes 39. The enation of the ne eat tem sk oie the opportnity of isn the speciation of Ship types, and he pssible nrodusion of new eateries For example, might have Been feasible > lassfy LNGwaekers acoring to the ype of tanks eared (membrane oF spherical) ort cate new {ategoris of ror-earpo cain Ship, where there were bg cat diferences tween the man i-pes Inclaed in that group. However, the lack of suffice age quantity of dat crete a solid base ‘ade it inpossibe er sucha evlatono beer oat, so cren tout new sip types could have been Invoduced the pprosch taken bythe Assciations was to avo tampering wih the Hist 39 much posibl node Leep he syst simple 1B nd tine Db wht th eter i ese the imiing inne of si si om the west pt regu to bull ele som tn thor ving hee dred om 2 baal ‘Srna ipa cea40. The proposed revised system i bated on the ship type-clasiiation which was developed by iar a te begining of te 1900s, The eee by Loy Reps Flrlay ofa revised ese ype ‘Sling spten? in mid06 de a mater afc the revise ct stem Series ets 44, Yu tas een collected as bse frtheresaeulatin og nti connection, some yards ‘Shen infomation ch allows the eval ofthe ser effect (oe easing cue) on man-hours used (ee'pcite ship Seng bul in serie, As can by sen from Figure I his eet sngly reduces the eon of man-hours volved inthe bling of hore ship In he dation of he efor it as been ‘Miumed Gur the far reflects the woroad forthe fist ship In 2 series, without any adjusiment for ‘Mhvequent increases inefliceney a8 workers Become more fala with their sks oss os oe 7-0-4 + 09905 Fig. Redaction of orkond (ris effet) frm the is ete 10th hip. 42. A similar eft, though of salar dere, may also be presenti shipyard i billing @ eran pe of ship wh oly led sie aration, asthe Worker hen became ore far with many ‘tthe dels. 43, The seisefet should be taken nt account when evaluating shipyard capi, otherwise he anelison could bed that and bling lon ties of parulrship type his neresee physical ‘pny. wheres in fe th man hours wed wore conta, bt ere wsed more efficent Cott review of some results 44 The following ttl comment on the results reched are offered a remarks 19 explain the ossbis an ian of te macro-economic et system, Taps Regier Fag, Ste S~Now Igroved Ves! T9pe Coding Sst45, The gp of fullcontintvesels is used a8 the example, a this ship ype creed serous ‘roblems when infomation wes being evalueted to dive the et firs. Sil, but sale problems ‘in be Fund in ever other ship Pal conanenseses(FCV) 46, The dea samples for the group of container ships have many cases, spread well ver wide ‘age of ship sie there an be ssumed tat thse dt wil ve representative est Deviation new to existing cgt for full container vessels Fig 2: Deviation botwesn new et and olde 47. Figue2 (above) and Figue 3 (teow) state how 2 sample of (act! shipyard) data for ‘ntainershpsconpaes between the proposed and exsing ex sien. 8, Desde the size ct number foe fatrs nfune the reported acta worRoad evolved In bulding cons nership. Tes nc! Several ofthe large vessel are equipped wth complicated cell guide systems to allow the ‘rrsporttin ofall the ensting diferent comin szs mixed in oe gue = Pospanana vessels havea larger bem, but more of less the same hee as params vesels The exeme bearybeight vals may ned completely difren’ sel sractrs to ead the ull'srquired gi, ean in higher an-hor fgue or thei bling ~Notallentinership (ese smaller sis uve cllguides on te main deck oa al wich gvesaciMerence in work conten.Full container ship comparison between old and new egt Fig: Doviations between smple-cet an formule 48. Evaluations show that can Be expected thatthe proposed gt factor give ress which are ovehly within #154 ofthe “coat” workload for individual ships. However iis assumed that ‘aaatins inelving arge number of ships de devitons which canbe found fr ingividul ships will fnlnce each oer uta give resus which canbe used wih lative confidence for evaation the Inseroevel SUMMARY 50. The OECD's Count Working Party on Shipbuilding (WPS) has seceptd the propossl mode by Shipbuiéer associations forthe new, formulbsed compensated goss vo system (6g) to replace the famer stem bed on cece tha it endorsed in 194, 151, User of eg nthe static clletions and aalyes ae encouraged to commence wilising the few cat gst fom Janury 2007, which has been adopted bythe WS asthe formal commencement SeeANNEX ‘OECD COUNCHL WORKING PARTY ON SHIPBUILDING. COMPENSATED GROSS TON SYSTEM —REVISED | JANUARY 2007, USER GUIDE 1) The Formula ob sedate calculation ofegtis:egt=A* gt” whore: gl ithe declared goss oanage ofthe vessel ‘Aste fate in Table 1 whic epresent the influence of ship: Bisthe factor in Table 1 which erescas the nunc of ships TABLE I: A and B factors frog aleulations [Ottaten (oobi) sor lobes nies, wag lsiccarers Baal \esmbined aries S focerat arg hie p lecters B Ine vevease 2 lose caries 6 ey % Isccv ta Caleulation of et wing Mierosoht Exes Microsoft Excel users can calculate gt with formula ased on the folowing forma: ~AY(@°B) wher the symbol isthe Eee anton POWER. “This can sob writen in Exel -AnPowER.)) ‘As an example,» passenger vesel of 3950 (ius factor A~$9 nd factor B-0.67) yields rest of 12 St. 1s is ei as B-bst whee he eer 2” eresens te dishing induce fips we he ‘ert pt equa bal 8 snp poe nT fc ws dived om sara sping SBipedout