Developments in Maritime Technology and Engineering – Guedes Soares & Santos (eds)

© 2021 Copyright the Author(s), ISBN 978-0-367-77376-2

Short sea shipping and shipbuilding capacity of the East Mediterranean and
Black Sea regions
T. Damyanliev, P. Georgiev, Y. Denev & L. Naydenov
Technical University of Varna, Varna, Bulgaria

Y. Garbatov
Centre for Marine Technology and Ocean Engineering (CENTEC), Instituto Superior Técnico, Universidade de
Lisboa, Lisbon, Portugal

I. Atanasova
Varna Maritime Ltd, Varna, Bulgaria

ABSTRACT: The recently released data on the Short Sea Shipping in the EU seas has shown a stable trend
in transportation growth. At the same time, the coaster fleet of the East Mediterranean and Black Sea regions
(EMBSR) is of considerable age, and the increased freight rates enforce the new orders of multi-purpose
ships. The objective of this paper is to analyse the main dimensions of dry cargo ships operating in the
EMBSR in the range of 2,000 to 9,500 DWT. The data collected for already built ships is compared to the
newly designed ones, accounting for the capital and operational expenditure and required freight rate. Recent
investigations demonstrated that the new building of ships in the range of 2,000 to 9,500 DWT is possible to
be done in the existing SME ship repair yards in the region. The study investigates the capacity of the ship-
building industry in the EMBSR. Several conclusions considering the relationships of the deadweight and
design governing parameters accounting for the existing production constraints of small and medium enter-
prises specialised in shipbuilding and repair are also presented.

1 INTRODUCTION Finland is 92.8%, Norway is 87,2%, and Croatia

The EU definition on the short sea shipping (SSS) is
defined as transportation of cargo and passengers by sea
between ports on the enclosed seas bordering, including
domestic and international maritime transport, feeder
services between the islands, rivers and lakes1.
Recently published data shows that the yearly
amount of SSS goods in the EU is higher than the
amount for the year 20092. The increase for the last
three years before 2016 is permanent, and the level
for 2016 is grater with 2.6 % from the previous year.
Despite the relative increase in the amount of trans-
ported goods, the current level is still below the ones
recorded in the years immediately preceding the eco-
nomic downturn in 2009 (Figure 1).
The short sea shipping is close to 60 % of the
total maritime transport of goods to and from the
main EU ports in 2016. The share of short-sea ship-
ping in the entire maritime transport varies consid-
erably between the countries as for example for
is 81.5%.
In the Black Sea region, the reported short-sea
shipping is for Bulgaria, about 80.0%, Romania is
70.0 %, and Turkey is about 68.1%.
Figure 2 presents the distribution of transported
goods in the European seas based on the Eurostat.
The total share of the Mediterranean Sea, Black
Sea and Atlantic Ocean is approximate as the one of
the North and Baltic Sea as can be seen in Figure 2.
The liquid bulk is the dominant type of cargo in the
EU short sea shipping. The share of the dry bulk goods
in the short-sea transportation of each sea region is
more evenly distributed, with a range of 16 % in the
Mediterranean Sea to a maximum of 26 % in the Black
Sea. After the liquid cargoes, the maximum share in the
Mediterranean Sea has the container transportations.
The growth in the SSS is accompanied by the devel-
opment of the EU’s political framework. The “Motor-
ways of the Sea (MoS)” is a concept introducing new
intermodal maritime-based logistics chains in Europe.

1 http://www.shortsea.info/definition.html
2 ec.europa.eu/eurostat/statistics-explained/index.php/Maritime_transport_statistics_-_short_sea_shipping_of_goods

DOI: 10.1201/9781003216582-85

749

Figure 1. Transported goods by SSS 2007-2017.
Figure 2. Transported goods in European seas, 2017.
The Detailed Implementation Plan (DIP) for MoS is
based on three pillars i.e. environment, integration of
maritime transport in the logistics chain and safety, traf-
fic management and human element. The DIP gives
development priorities in different areas that belong to
the three pillars. The development directions for the
ships in Pillar 1 – “Environment” are presented in
(Simpson, 2016). According to the DIP the financing
of the green shipping priority needs pilot testing of new
mechanisms that consider both the capital expenditure
(CAPEX) and operational expense (OPEX). They
attract the beneficiary stakeholders such as the EU
shipyards, engine and equipment manufacturers in the
risk-sharing model.
The maritime investments should be considered in
the cohesion and other structural funds agenda and
to design an overall risk and security management
approach in the transport and logistics sector.
Although the problems related to SSS are widely
studied, still some long-standing issues have not
been resolved (Gustafson et al., 2016). The logistics
solutions in the short sea shipping are generally not
efficient. One of the main reasons is the high
number, more than 15 different organisations,
750
involved in the transportation chain. As evidence of
the low vessel, utilisation is the fact that the bulk
and general cargo vessels in the Baltic Sea sail on an
average 34% of their sailing time in ballast condi-
tions without a cargo. Furthermore, about half of the
ships in dry bulk and general cargo segment operat-
ing in the Baltic Sea currently spend at least 40% of
their time in ports. Another contributing factor is the
slow cargo loading and unloading process during
which the vessel remains in the harbour.
A central reason for the lack of technological
innovations is the decision-making process in the
shipbuilding, only based on the minimisation of the
capital expenditure, instead of a more holistic
approach. Such a comprehensive approach accounts
for all expenses during the life cycle of the ship.
Another problem in the design phase, which is the
discrepancy between the design speed and the cor-
responding power and what is the actual need.
In the Baltic Sea, around 70% of vessels sail at
a speed that is 15–25% below the design speed (Gus-
tafson et al., 2016). This can be partly explained by
the need to sail in icy conditions.
Recent legal developments introduced by the Inter-
national Maritime Organisation, IMO have an impact
on the performance of the SSS (Papadimitriou et al.,
2018). The lower sulphur limit in ECAs appears to
have a negative effect on the competitiveness of the
SSS. Some of the ships are fully exploited in ECAs
and are forced to use significantly more expensive fuel.
The Ballast Water Convention (entered in to force
on 8 September 2017) also has a negative impact on
the SSS. The cost of the new equipment, together
with the installation that will keep the ship many
days out of the market, required extra cost and loss
of profit for the operators from the SSS sector. The
requirement to perform ballast water operations at
a distance of at least 200 nm from the coast and
200 m depth directly impact of the efficiency of the
ships that sail much closer to the coast.
As an alternative mode of the transportation, the
SSS offer valuable social benefits including shifting
the traffic from the overburdened roads, development
of peripheral or isolated regions and islands and
a low number (together with aviation) of accidents.
The significant social benefit of the SSS also lies in
the contribution to the local shipbuilding industry.
Therefore, in Europe, short-sea vessels are primarily
ordered by the local shipbuilders who specialise in
ship designs of a relatively small ship size. Thus, short
sea newbuilding activity offers valuable support to the
European shipyards, which face severe financial diffi-
culties. These activities will also reduce unemployment
and the same holds true for the ship repair yards.
The next sections of the study will present an
overview of the current state of the SSS and the
coaster fleet of the East Mediterranean and Black
Sea regions. The shipbuilding capacity of the
EMBSR is also described, and a comparison of dif-
ferent ship design solutions employing the conceptual
design framework “Expert” with already built and
operated in the regions ships will be performed. The Table 2. Flag states of SSS fleet.
analysis of a series of newly designed sips, account-
ing for the CAPEX, OPEX and required freight rate Flag state Total DWT %
(RFR) will be presented. Finally, several conclusions
considering the relationships of the deadweight and Antigua & Barbuda 2,810,513 14.20%
design parameters accounting for the existing con- Russian Federation 2,740,257 13.85%
straints of the SMEs will also be discussed. Netherlands 2,589,966 13.09%
Malta 1,361,415 6.88%
Turkey 1,160,163 5.86%
2 SHORT SEA SHIPPING Panama 1,078,842 5.45%
Others 8,047,368 40.67%
2.1 European short sea shipping fleet TOTAL 19,788,524 100.0%
Twenty years ago, the SSS fleet counted more than
50% from the total fleet with an average age of 20 years
as can be seen from Table 1. The dry bulk cargo ships Table 3. Classifications societies of SSS fleet.
represent the largest European Economic Area (EEA)
short sea fleet with almost constant total DWT during Classification Society Total DWT %
the years. From 9,479,320 DWT in 2005 to 11,536,140
Germanischer Lloyd 4,578,244 23.14%
DWT at October 2014 (ECSA, 2016). Concerning the
Bureau Veritas 3,863,651 19.52%
age of the ships, in the spring of 2017 more than 35% Russian Register of Ships 2,770,517 14.00%
from the ro-ro ships are over 25-year old (EC, 2018).
Unidentified 2,692,502 13.61%
Recently, an analysis of the European Coaster
Lloyds Register 1,866,422 9.43%
Fleet was published in (IDEAS, 2016). The study
Registro Italiano Navale 701,083 3.54%
presented a snapshot of the Black Sea, Mediterra- Others 3,316,105 16.76%
nean, Continent and Baltic coaster fleet evaluating
the severe problems with the sub-standard shipping, TOTAL 19,788,524 100%
to determine its extent within the coaster fleet.
The data showed that the coaster fleet, defined as
1,000-12,000 DWT, general cargo and bulk carrier ves- reasons can be seen as a change of the classification
sels, owned by the countries surrounding the Black, society, and the information is not yet updated in the
Mediterranean, Continent and Baltic seas are over records, withdrawal of the class of the vessel from the
4,300 active units with a total capacity of existing classification society. The class renewal survey
19,788,524 DWT. is overdue, but the records are not adequately updated,
Among this fleet, six flag states hold over or the ship operates or switched to a less recognised
one million DWT registered ships (see Table 2). The class, without access to an international database or
top five classification societies are Germanischer does not update its records regularly.
Lloyd (now DNV-GL3), Bureau Veritas, Russian Every year the Paris MoU on the port state control
Register, Lloyds Register and Registro Italiano published the “White, Grey and Black (WGB) list”
Navale (see Table 3). presenting the quality flags and flags with poor per-
It should be noted that a significant part of the formance with high or very high risk. The vessels with
fleet – 805 vessels with a total of 2,692,502 DWT undefined class additionally were grouped by the
(over 13,5 per cent), remains unidentified. The possible IDEAS according to their flag and age as can be seen
in Table 4. One can consider that ships with a total
DW about 617,000 t are sub-standard. However, other
Table 1. Data for SSS fleet (OECD, 2001). ships may be added to these as vessels younger than
20 years that are poorly managed, ships registered
Number DWT
Average under White or Grey-listed flag might also belong to
Age
(%) %
(Years)
Table 4. Flag and age of vessels with “unidentified” class,
EU Deep Sea 42.7 93.3 14 (DWT).
Short Sea 57.3 6.7 20
Rest of Europe Deep Sea 37.3 90.8 13 Flag Age > 20 years Age < 20 years
Short Sea 62.7 9.2 21
White of Grey 1,699,771 350,932
Rest of the Deep Sea 31.5 91.1 13
Black 617,195 24,604
World Short Sea 68.5 8.9 18
TOTAL 2,316,966 375,536

3 DNV and GL signed a merger contract on 12 September 2013

751
the sub-standard shipping, and about 1.7 million DWT
of the coaster fleet is with unidentified class and are
over 20-year old.
Taking into account the WGB list of the Paris MoU,
IDEAS, it may be concluded that 485 coasters (about
2.0 million DWT, 10% of the fleet) remain registered
under risky flag jurisdictions and low-performing Clas-
sification Societies thus bearing a very high risk.
A further 866 coasters, (about 2,98 million DWT, 15 %
of the fleet) need to be closely monitored. Regardless
of their flag state, vessels classified by low-performing
or unknown Classification Societies threaten the sus-
tainability of coaster trade is due to fact that they oper-
ate under sub-standard or near-sub-standard conditions.
They are potentially unsafe and unfit for the inter- Figure 3. Average freight rates for a general short sea cargo
national trade and create unfair competition. shipped from Azov Sea to Marmara region.
It can be argued that the considerable age, high
freight rates and the increase in the amount of goods
transported by the SSS will result in ordering and
construction of new ships.

2.2 Operational cost

Since 2017, the Brokers Market & Trend Information
(BMTI) Company launched the first official Euro-
pean Short Sea Index (EUSSIX). The index uses
weighted inputs from three sub-regional indexes,
including the Northern Europe, Mediterranean Sea
and Black Sea-Azov seas. The EUSSIX is published
weekly and aggregates freight rates for dry bulk car-
goes transported in Europe and adjacent regions with
vessels between 1,000-20,000 DWT.
Figure 3 presents the average freight rates for
a general short sea cargo shipped from the Azov Sea
to Marmara region, June 2017 – June 2018, (BMTI, Figure 4. IFO-180 price for the last six years. Own calcula-
2019). The shown cycles in Figure 3 can be tions based on ISTFIX.
explained by the harvesting in the southern Russian
and Ukraine.
The Istanbul Freight Index (ISTFIX) is owned
and operated by Istanbul Denizcilik Ar Geve
Danismanlik4, which reaches information about
the shipping in the EMBSR. The ISTFIX is
based on the data for the cargo transportation
from the Black Sea to the five other destinations
including the Marmara Sea, East, Central and
West Mediterranean Sea and Continent Range.
The size of ships is ranging from 2,000 to
12,000 DWT, which describes a small coaster
ship of dry/general cargo or mini bulkers type.
Figure 4 and Figure 5 show the changes in the
IFO-180 and MGO fuel price for the last years.
It is clear that during the collapse in the oil price
in 2014-2016, a growing supply accumulation,
which can be one of the reasons for the increased
amount of transported cargo in that period (see Figure 5. MGO fuel price for last six years. Own calcula-
Figure 1). tions based on ISTFIX.

4 http://en.istfix.com/

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 Table 7. Maximum length of graving docks.
3 SHIPBUILDING CAPACITY

The shipbuilding potential of the East Mediterranean

and the Black Sea regions is evaluated by analysing
the shipbuilding facilities of 46 shipyards from 6
countries including Bulgaria represented by 4 ship-
yards, Greece – 4 shipyards, Romania – 3 shipyards,
Russia – 2 shipyards, Turkey - 27 shipyards and
Ukraine – 6 shipyards.
The analysed facilities are composed of graving
docks, floating docks and slipways. The term slip-
way comprises a sloped slipway for longitudinal Table 8. Maximum breadth of graving docks.
launching, airbags launching, ship lift, rail slipway
etc. A total of 117 facilities have been analysed as
can be seen from Table 5, and their dimensions are
shown in Table 6.
Table 7 to Table 13 present the shipyards with the
most significant dimensions of the shipbuilding facil-
ities and lifting capacity of floating docks for each
country.
Table 14 shows the primary characteristic of con-
tainer ships, general cargo carriers, tankers and bulk-
ers typically operating in a short-sea shipping
(Tsinker, 2004). The presented dimensions are Table 9. Maximum length of floating docks.
approximate and serve only to evaluate the capabil-
ities of the shipyard’s facilities. The range of differ-
ent ship types dimensions is shown in Figure 6.
Based on the analysis of the typical dimensions of
the ships operating in the SSS can be concluded that
existing SMEs have enough capacity in building
new ships in EMBSR.

Table 5. Shipyard facilities by country and type.

Country Graving dock Floating Dock Slipway Table 10. Maximum breadth of floating docks.

Bulgaria BG 3 5 1
Greece GR 2 7 1
Romania RO 5 2 1
Russia RU - 1 1
Turkey TR 4 21 48
Ukraine UA 4 5 6
TOTAL 18 41 58

Table 6. Range of dimensions of the facilities.

Table 11. Maximum lifting capacity of floating docks.
Parameter Graving dock Floating dock Slipway

Length, m 370.0 382.0 400.0

85.0 83.8 92.5
Breadth, m 70.0 58.0 60.0
12.5 16.0 15.0
Lifting capacity, t - 50000 -
- 3000 -

753
Table 12. Maximum length of slipways. NOx emission criteria and to achieve significant
reductions in CO2 and particulate matter (PM).

4 DRY CARGO SHIPS

Nowadays, the European maritime industry counts

on small and medium-sized enterprises, SME to
restore the European shipbuilding industry while
ensuring youth employment. In response to this goal,
several studies can be highlighted.
One direction is to consider the shipbuilding cap-
Table 13. Maximum breadth of slipways. acity of the SME shipyards and the demand of the
ship-owners for efficient ships operating in the
EMBSR. The breadth of the slipway as building
limitation was studied in(Atanasova et al., 2018).
The design of series of Multi-Purpose Vessel
(MPV) with a DWT range from 5,000 to 10,000 tons
subjected to shipbuilding, operational and functional
constraints were design by the software tool “Expert”
(Damyanliev et al., 2017, Garbatov et al., 2017). The
series includes two groups of ships with and without
restriction in the breadth due to shipbuilding facility
Table 14. Main dimensions of SSS type ship types. constraints. The analyses of the total ship resistance,
intact stability and cargo capacity (Denev et al.,
Ship type DWT, t LW, t L, m B, m 2018) and ship performance taking into account the
seakeeping of the ships (Georgiev et al., 2019)
Container ship 6,500 2,500 115 19 showed that some design solutions with a limited
15,000 5,000 180 27 breadth leads to better ship performance compared to
General 1,000 600 65 10 the vessels of the same deadweight without restric-
Cargo ship 10,000 3,600 135 20 tions. The main conclusion was that ships can be
Tanker 1,000 400 60 9 built in small and medium-sized enterprises with
10,000 2,000 140 17 constraints of building new ships.
Bulker 5,000 2,000 110 16 The software tool “Expert” permits ship design
10,000 3,000 140 18 optimisation with constraints taking into account
CAPEX, OPEX or RFR (Required Freight Rate) as
an objective to minimize. The optimal main dimen-
sions of ships with 5,000 - 8,000 DWT at speed =
14,5 kn., stowage factor = 1.45 m3/t, crew =18 per-
sons and sailing distance of 5,000 nm are presented
in Table 15 to Table 18 (i.e Table 15, 16, 17 and 18).
These tables include the main dimensions obtained
at different objective functions taking into account
the specific limitations due to the shipbuilding facil-
ities as analysed in (Denev et al., 2018). In this case,
the breadth of the ship is limited to 16 m. Later, the
obtained design solutions are compared with the
dimensions of already built ships.
Recently, several studies presented the use of
regression relationships in defining the main ship
dimensions. Ebrahimi et al. (2015), demonstrated the
Figure 6. Main dimensions of ships suitable for short sea application of the multivariate data analysis in the
shipping. parametric design of OSVs. The key design charac-
teristics of container ships with a length range of
47.5 to 383 m as a function of DWT and the number
The new design vessels, operating in the SSS of TEU are presented in (Abramowski et al., 2018),
conditions, need to satisfy all environmental where the regression relationships are based on the
requirements of the IMO, including the Tier III container ships built from 2005 to 2015 year.

754
Table 15. Main dimensions of 5,000 DWT MPV. Different relationships for the preliminary design
of Handy size, Medium-Range, Panamax, Post Pana-
Objective Lpp, m B, m D, m d, m Cb- max, Aframax, Suezmax and VLCC tankers built
from 2000 to 2018 year may be found in (Cepowski,
No restrictions 2019) and all relationships have been developed con-
CAPEX 90.09 16.88 8.76 7.04 0.650 cerning deadweight and velocity.
OPEX 113.20 15.92 6.93 9.06 0.600 Recently, Santos and Soares (2017) presented
RFR 101.51 16.08 8.88 7.02 0.632 a novel methodology for determining the characteris-
tics of a ro-ro ship and the fleet size required for
With restrictions a given short sea shipping route, identifying the
CAPEX 86.89 16.00 9.03 7.30 0.680
vessel characteristics as a function of the capacity.
OPEX 121.15 15.90 9.20 7.07 0.574
The present study analyses more than 200 dry
RFR 88.629 16.00 7.08 8.81 0.690
cargo ships (MPVs and mini bulk carriers) in the
range of 2,100 to 9,300 DWT.
The main dimensions as a function of the DW are
Table 16. Main dimensions of 6,000 DWT MPV. presented in Figure 7 to Figure 11, including the
optimal design solutions obtained by “Expert” soft-
Objective Lpp, m B, m D, m d, m Cb- ware framework accounting for CAPEX, OPEX and
RFR as an objective and for the restricted or non-
No restrictions restricted breadth due to shipbuilding constraints of
CAPEX 99.32 16.80 9.34 7.35 0.680 the SMEs.
OPEX 131.80 16.50 9.16 6.85 0.627 Figure 7 and Figure 8 show that the ship length
RFR 116.57 16.43 9.23 7.06 0.652 solution obtained by RFR and CAPEX as an objective
function is close to the already built ships. The
With restrictions CAPEX leads to a reduced length, while the OPEX
increases the length. In the case of a restricted breadth,
CAPEX 104.92 16.00 9.17 7.12 0.700
due to the production constraints of the SMEs, with
OPEX 134.90 15.96 9.32 6.88 0.632
increasing the DW, the ship length, accounting for
RFR 106.60 16.00 8.93 6.88 0.721
CAPEX and RFR, increases too, and the estimated

Table 17. Main dimensions of 7,000 DWT MPV.

Objective Lpp, m B, m D, m d, m Cb-

No restrictions
CAPEX 108.67 17.06 9.79 7.53 0.680
OPEX 144.22 16.69 9.95 7.44 0.613
RFR 123.24 17.05 9.67 7.29 0.668

With restrictions
CAPEX 123.37 16.00 9.27 6.87 0.740
OPEX 139.35 16.00 9.40 6.94 0.690
RFR 120.62 16.00 9.03 6.67 0.772
Figure 7. Length as a function of deadweight, coasters.

Table 18. Main dimensions of 8,000 DWT MPV.

Objective Lpp, m B, m D, m d, m Cb-

No restrictions
CAPEX 118.58 17.43 10.10 7.59 0.720
OPEX 151.38 17.69 10.46 7.75 0.615
RFR 126.44 17.51 9.98 7.43 0.699

With restrictions
CAPEX 139.32 16.02 9.42 6.77 0.770
OPEX 141.75 16.00 9.45 6.77 0.766
RFR 135.06 16.00 9.028 6.67 0.772 Figure 8. Length as a function of deadweight, coasters.

755
Figure 9. Breadth as a function of deadweight, coasters. Figure 12. GT as a function of deadweight, coasters.

Figure 10. Draught as a function of deadweight, coasters. Figure 13. NT as a function of deadweight, coasters.

values are close. The gradient of increasing the length

is more significant than the one observed for already
built ships.
Concerning the breadth, the optimal ship design
solutions based on the CAPEX, OPEX and RFR are
close to the already built ships. The estimated design
values are a little bit greater than the ones of the
already built ships. The design solutions for the
draught are highly influenced by the breadth restric-
tions. The economic criteria do not affect the draught
at the restricted breadth while the RFR, as a design cri-
terion, leads to solutions close to the already built Figure 14. Cargo capacity as a function of deadweight,
ships coasters.
Figure 12 to Figure 14 present the relationship
between the gross tonnage (GT), net tonnage (NT)
and Cargo capacity versus DWT. A very good match 5 CONCLUSIONS
is obtained, and the estimated relations may be used
at the preliminary stage of ship design. The analysis of the recently published studies
showed that the amount of goods transported by SSS
in the EU is higher compared to the year 2009 (the
worst year) and the increase in the last three years is
permanent. The total share of the Mediterranean and
the Black Seas is more than one-third of the total
amount of transported goods, and transportation in
this region has the potential to be increased.
The coastal fleet in the East Mediterranean and
Black Sea regions (EMBSR) faces serious chal-
lenges related with some long-standing problems of
the SSS as for example the legislation and organisa-
tion, new environmental requirements of the IMO
that will impact the efficiency of the ships and the
Figure 11. Draught as a function of deadweight, coasters.
most essential facts are the considerable age of the

756
SSS fleet. The IMO includes ballast water treatment,
sailing in ECAs and EEDI and EEOI. About 12% of
the SSS fleet is over 20-year-old, and 485 from
about 4,300 active units (11%) are considered as
sub-standard. It can be argued that the considerable
age, high freight rates and the increase amount of
goods transported by the SSS will lead to new order-
ing and construction of new-generation coaster ships
taking into account all IMO requirements.
The analysis of 117 facilities from six counties of
the region has shown that there is enough capacity for
the construction in SME shipyards of such new ships.
To respond to the objective of the EC in stimulat-
ing the development of the SMEs, the analysis of
shipbuilding opportunities, with the consideration of
shipbuilding constraints was performed here. To aid
the SME in this process, a design tool “Expert” spe-
cialised in the conceptual design was employed in
defining the optimal design solutions taking in con-
sideration CAPEX, OPEX and RFR. The present
study included the design of MPV in the range of
5,000 to 10,000 DWT with and without restriction in
the breadth due to the construction limitations of the
SMEs. The design solutions were compared with the
already built ships, including the ones accounting for
restriction in the breadth of the vessel.
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