marine 2005

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This year marks Diesel & Gas Turbine Worldwides eighth annual survey ofmechanical drive marine propulsion engine orders. Engine order volumes are againup for the year, however, there has been a slight decrease in orders for the largestoutput categories, thus the overall output total is down from the previous year.

Mechanical drive output has fallen slightly from 39 065 MW in 2004 to 37 436

MW in 2005. Although there was a small drop in output, the overall amount ofmechanical drive engines increased from 7003 units in 2004 to 8792 units in 2005.

As with last years large increase, this unit volume increase still represents tremen-dous marine order activity, including everything from OSVs to ferries to containercarriers to tankers to bulkers. Diesel auxiliary generating unit orders were corre-spondingly down slightly, given the small decrease in larger mechanical driveorders. Diesel-electric marine propulsion orders were a bright spot this year, con-tinuing growth in that sector with a unit increase of 74%.

As D&GTWhas conducted in the past, the years surveys also includes the 14th

consecutive year in reporting orders for marine auxiliary generation engines, as wellas the ninth year in recording orders for diesel-electric marine propulsion units.

As in previous reports, the survey period covers engine orders from a June 1 to

May 31 timeframe and covers various output categories from 0.5 MW (500 kW)

and above. Most of the worlds marineengine builders, and their licensees,have participated in all facets of thissurvey, so that the information provid-ed should be useful for comparisonpurposes and trend analysis.

The mechanical drive unit orders are

up 26% over 2004, from 7003 to 8792.However, overall engine output is downby 4%, from 39 065 to 37 436 MW.Marine auxiliary generator engine ordersare reversed, with unit orders down2.5% over 2004 and engine output upalmost 4%. Diesel-electric engine orderswere up significantly, increasing 74%from 2004. Total diesel-electric outputincreased by about 53%.

The combined output for all enginesfrom the three surveys is down by 2%over last year, from 45 030 MW to

44 097 MW, while total units orderedare up by about 16% from 11 340to 13 198 units. Unit order increaseswere seen in both the mechanical driveand diesel-electric engine categories.Engine order volume was increasedmainly in the smaller output ranges,thus the lower combined output of allthree surveys.

In terms of geographic location of theengines at the shipbuilders site, theincreases were fairly spread out this year

among the worlds major shipbuildingcenters. The Far East was again a leaderfor the largest engine output ranges, withall 164 of the 50+ MW engine ordersgoing to that region, which includesChina, Japan and South Korea. The twoother large volume areas, Europe andNorth America, also increased as well.

Mechanical Drive OrdersTotal mechanical drive propulsion

orders increased by 1789 units this year,

but total output decreased by 1629MW. The decrease in output numbersreflects unit order decreases in two ofthe largest output ranges, 15 to 30 MWand 50 MW and above. As for individualcategories, the largest unit increaseswere recorded in all of the output cate-gories from 500 kW to 7.5 MW. Therewas also an increase of 55 units in the 30to 50 MW range, an increase of 63%over 2004. In the other large engine cat-egories, the 15 to 30 MW range

Orders Remain Highfor Marine EnginesLargest engine ranges decrease slightly, but smaller enginesand diesel-electric show increases

November 2005

Diesel & Gas Turbine Worldwide

MARINE PROPULSION ORDER SURVEY BY MARK MCNEELY

Marine Diesel Orders(number of units)

44 097 MW ofMarine Diesel Power

405Diesel-Electric

Propulsion

8792Mechanical Drive

Diesel Propulsion

4001

MarineAuxiliaryGeneration

5224MarineAuxiliary

Generation

1437Diesel-Electric

Propulsion

37 436Mechanical Drive

Diesel Propulsion

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November 2005


MARINE PROPULSION ORDER SURVEY

decreased by 46% (195 units vs. 360 in2004) and the 50+ MW range decreasedby 21% (164 units vs. 208 in 2004).

In the engine speed ranges, enginesroughly above 7.5 MW fell into theslowest speed range below 300r/min so those numbers were downcorrespondingly this year compared tothe large order figures posted in 2004.Given that engine orders were up in all

categories below 7.5 MW, the twomedium speed engine ranges 300 to600 r/min and 720 to 1000 r/min were up 42% and 55%, respectively.The high speed range above 1000r/min also reflected an increase of about33% for the smaller output engines.

With the increases in the smalleroutput ranges, fuel usage for mechani-cal drive diesels also reflected a 33%increase in diesel fuel. Engines fueled byheavy fuel oil also increased, but onlyby 3%. Both the engine speeds and fueltypes reflect traditional patterns ofdiesel fuel for higher speed engines andheavy fuel for slower speed units.

With regard to the geographic loca-

tion of the shipbuilding site, the FarEast, with an overwhelmingly domi-nant position in large engine produc-tion, reflected the respective increasesand decreases in engines above 7.5MW, including 100% of the orders inthe 50 MW and above category. This

naturally reflects the major manufactur-ers licensee activities. As with last yearsfigures, it is also noteworthy that therewas a 308 unit increase, or about 27%,in the regions encompassing Southeast

Asia/Australasia. Western Europe wasup 13% to 2536 units and mainly in thesmaller kW ranges. North America,mostly a smaller output market, in-creased by a healthy 66% (1711 units

vs. 1029 in 2004).

Marine Auxiliary Gen-setsDespite increases in past years for the

auxiliary drive engines, this years unitorders were off by 2.5%, however, out-put increased by 4%, which was the

MECHANICAL DRIVE DIESEL MARINE PROPULSION ORDERS, June 2003 May 2004

Western

Europe

Eastern

Europe

&Russia

Middle

East

FarEast

Southeast

Asia/

Australasia

Central

Asia

North

Africa

Central,

W.,

E.

&

S.

Africa

North

America

Central

America

South

America

*Geographic location is at the shipbuilding site

Output Number Total Engine Speed (r/min) Fuel (Units)

Range of Output Below 300- 720- Above Diesel Heavy(MW) Engines (MW) 300 600 1000 1000 Oil Fuel

0.5 - 1.0 2925 1934 2 25 48 2850 2917 8 981 9 65 500 661 5 24 8 639 1 32

1.01 - 2.0 1924 2568 4 17 368 1535 1855 69 877 66 26 252 292 5 2 9 380 15

2.01 - 3.5 469 1162 15 35 269 150 359 110 130 17 43 113 119 22 2 4 19

3.51 - 5.0 167 685 39 71 31 26 76 91 57 3 9 66 22 2 8

5.01 - 7.5 163 1064 68 44 31 20 38 125 25 6 14 90 23 4 1

7.51 - 15.0 699 7107 564 103 26 6 6 693 96 18 574 9 2

15.01 - 30.0 360 7628 356 4 360 58 15 286 1

30.01 - 50.0 88 3610 84 4 88 4 4 80

50.0 + above 208 13 307 208 208 16 192

Totals 7003 39 065 1340 295 781 4587 5251 1752 2244 138 157 2153 1127 34 28 17 1029 1 75

MECHANICAL DRIVE DIESEL MARINE PROPULSION ORDERS, June 2004 May 2005

Western

Europe

Eastern

Europe

&Russia

Middle

East

FarEast

Southeast

Asia/

Australasia

Central

Asia

North

Africa

Central,

W.,

E.

&

S.

Africa

North

America

Central

America

South

America



Range of Output Below 300- 720- Above Diesel Heavy(MW) Engines (MW) 300 600 1000 1000 Oil Fuel

0.5 - 1.0 3627 2432 3 98 3526 3622 5 1000 20 76 728 716 15 5 12 993 5 57

1.01 - 2.0 2825 3804 24 600 2201 2626 199 1038 61 272 239 427 56 2 1 674 55

2.01 - 3.5 739 1777 13 22 410 294 574 165 208 15 48 140 242 16 6 40 4 20

3.51 - 5.0 209 865 60 49 70 30 67 142 75 3 25 82 24

5.01 - 7.5 231 1360 74 108 24 25 50 181 46 1 16 151 10 2 4 1

7.51 - 15.0 659 6695 437 212 6 4 48 611 148 32 463 12 4

15.01 - 30.0 195 4016 195 195 20 28 143 4

30.01 - 50.0 143 5744 143 143 1 16 126

50.01 + above 164 10 743 164 164 164

Totals 8792 37 436 1086 418 1208 6080 6987 1805 2536 176 437 2236 1435 87 19 13 1711 9 133

MARINE AUXILIARY GENERATING SET ORDERS, June 2004 May 2005



Range Auxiliary Output 300- 720- Above Diesel Heavy(MW) Units (MW) 600 1000 1000 Oil Fuel

0.5 - 1.0 2112 1600 1502 610 1489 623 354 7 97 1501 56 26 1 1 46 4 19

1.01 - 2.0 1260 1705 981 279 498 762 398 52 24 667 52 5 1 37 24

2.01 - 3.5 557 1604 29 491 37 123 434 73 468 16

3.51 - 5.0 72 315 44 27 1 18 54 53 17 2

5.01 & above

Totals 4001 5224 73 3001 927 2128 1873 878 59 121 2653 110 31 1 2 99 4 43

Western

Europe

Eastern

Europe

&Russia

Middle

East

FarEast

Southeast

Asia/

Australasia

Central

Asia

North

Africa

Central,

W.,

E.

&

S.

Africa

North

America

Central

America&

Caribbean

South

America

MARINE AUXILIARY GENERATING SET ORDERS, June 2003 May 2004



Range Auxiliary Output 300- 720- Above Diesel Heavy(MW) Units (MW) 600 1000 1000 Oil Fuel

0.5 - 1.0 2232 1621 1656 576 1218 1014 588 17 91 1328 91 36 6 2 35 5 33

1.01 - 2.0 1201 1505 1040 161 377 824 302 108 64 628 27 18 4 43 7

2.01 - 3.5 564 1476 547 17 83 481 55 60 441 2 5 1

3.51 - 5.0 99 371 99 14 85 18 70 11

5.01 & above 8 54 8 5 3 3 5

Totals 4104 5027 3350 754 1697 2407 963 125 215 2470 125 54 10 2 94 5 41

Western

Europe

Eastern

Europe

&Russia

Middle

East

FarEast

Southeast

Asia/

Australasia

Central

Asia

North

Africa

Central,

W.,

E.

&

S.

Africa

North

America

Central

America&

Caribbean

South

America

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November 2005



result of slightly higher output engineorders being reported in most cate-

gories. The volume decrease is mostprobably a result of larger engine orderdecreases in the mechanical drive sec-tor, since those orders are tied together.The increase in smaller output me-chanical drive engines also translatesinto smaller auxiliary engines, thosethat fall under the 500 kW threshold.The small highlight this year was the1.0 to 2.0 MW category, which showedan increase of 5% (1260 units vs. 1201in 2004).

Fuel choice this year was skewedtoward diesel fuel, with an increase of25% over 2004. Orders for heavy fuelengines were down by 22%. With re-gard to engine speed, it is interesting tonote that 73 engines were reported inthe speed range from 300 to 600 r/min,whereas there had been none reportedin 2004. Medium speed engines fellapproximately 10%, while high speedengines rose by 23%.

From the geographic location stand-point, engine orders were up only in

the Far East. The Far East increased by7.4%, from 2470 units in 2004 to 2653units in 2005. Western Europe, thesecond largest center for engine vol-ume, was down by 9%. The remainingregions decreased or stayed steadycompared to units reported in 2004.

Diesel-Electric PropulsionThe brightest spot in this years

marine engine order surveys is diesel-electric propulsion. Engine orders in-

creased by 74% and engine outputincreased by 53%. Accounting for thissurge is an increase in electric propul-sors across several vessel types, includ-ing the traditional cruise and surveyship markets, but also increased usagein offshore and ropax vessels.

Diesel-electric engine orders were upin four of the six output categories,including the three smallest ranges from500 kW to 3.5 MW, as well as the largest

output category of 7.5 MW and above.Engine orders decreased from 3.5 to 7.5

MW, but only slightly in comparison tothe other ranges. Engine output totalsmirrored the order volumes.

In contrast to the same size range ofengines running on heavy fuel as auxil-iary generators, diesel-electric systemengines tend toward diesel fuel near-ly 75% in 2005 as they are the mainpropulsion systems for the vessels. It isnoteworthy, however, that this year 59heavy fuel engines were reported in thetwo output categories from 1.0 to 3.5

MW (there were zero in 2004).This year the geographic locations

for these engines were mixed. Most ofthe higher volume regions postedgains, including Western Europe andthe Far East, which had increases of67% and 185%, respectively. Inter-estingly, the Far East reported 18engines this year in the 7.5 MW andabove category (there were zero in2004). Also, North American engineorders were up 155% (79 units vs. 31

in 2004). Regions posting decreases,although small in volume, includedSoutheast Asia/Australasia, Central Asiaand Central and South America.

Engine operating speeds reflect theincreases in the smallest and largestengine output ranges, while the slightdecrease in the medium speed range 720 to 1000 r/min reflects the smalldrop in engine orders from 3.5 to 7.5MW. The above 1000 r/min categoryshowed the greatest increase this year

DIESEL-ELECTRIC MARINE PROPULSION ORDERS, June 2004 May 2005

Output Number of Total Engine Speed ( r/min) Fuel (Units)

Range Diesel-Electric Output 300- 720- Above Diesel Heavy(MW) Propulsion Units (MW) 600 1000 1000 Oil Fuel

0.5 - 1.0 121 95 121 121 21 84 1 15

1.01 - 2.0 75 131 37 38 46 29 32 1 3 10 29

2.01 - 3.5 94 236 63 31 64 30 46 4 15 8 2 2 19

3.51 - 5.0 30 123 12 18 25 5 19 2 6 3

5.01 - 7.5 12 75 1 7 4 9 3 10 2

7.51 & above 73 777 71 2 34 39 39 18 16

Totals 405 1437 84 127 194 299 106 167 9 84 37 24 2 2 79 3

Western

Europe

Eastern

Europe

&Russia

Middle

East

FarEast

Southeast

Asia/

Australasia

Central

Asia

North

Africa

Central,

W.,

E.

&

S.

Africa

North

America

Central

America&

Caribbean

South

America

DIESEL-ELECTRIC MARINE PROPULSION ORDERS, June 2003 May 2004

Output Number of Total Engine Speed (r /min) Fuel (Units)

Range Diesel-Electric Output 300- 720- Above Diesel Heavy(MW) Propulsion Units (MW) 600 1000 1000 Oil Fuel

0.5 - 1.0 20 18 20 6 14 6 14

1.01 - 2.0 64 97 25 39 64 17 7 8 20 12

2.01 - 3.5 63 178 52 11 63 29 3 5 10 4 4 8

3.51 - 5.0 33 128 33 33 13 4 8 4 3 1

5.01 - 7.5 16 89 4 10 2 13 3 10 6

7.51 & above 37 428 37 15 22 25 12

Totals 233 938 41 120 72 194 39 100 7 7 13 38 8 31 14 15

Western

Europe

Eastern

Europe

&Russia

Middle

East

FarEast

Southeast

Asia/

Australasia

Central

Asia

North

Africa

Central,

W.,

E.

&

S.

Africa

North

America

Central

America&

Caribbean

South

America



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(194 units vs. 72 in 2004) due mainlyto a large uptick in the 500 kW to 1.0MW range.

Overall ResultsIn 2004, marine engine order activi-

ty hit a record level, especially for the

largest oceangoing vessels. World ship-building is now in the sixth year of adevelopment boom. Even though over-all engine output decreased slightlyfrom last year, engine orders stillremain at very high levels.

Among the factors continuing toinfluence this building boom are theever-strenghtening economies in Asiaand the Americas, which have fueledthe need for freighters, and in particu-lar, containerships. And, as noted lastyear, there remains a strong focus on

the worlds security matters, which hasmany of the worlds government agen-cies upgrading and/or adding to theirfleets. Finally, from about 1999 on-ward there has been increased usage ofdiesel-electric propulsion systems, ex-tending beyond traditional vesselapplications.

It must also be noted again this yearthat the Far East including SouthKorea, Japan and China continuesto strengthen its position as the center

for shipbuilding activities. And al-though the order volumes are not near-ly as high as Western Europe or the FarEast, two other regions have increasednicely from 2004, including the MiddleEast at 69% and North America at64%.

The marine surveys, combined withour 29thAnnual Power Generation Or-der Survey (see D&GTW, October2005), provide a fairly complete synop-sis of the large reciprocating engine

building business. Engine order activitythis year demonstrated dramatic im-provement in the power generation sec-tor, and the marine marketplace contin-ues to be strong. Add to this a robustmarketplace for mechanical drive en-gines for gas compression applications.For the engine builders serving all threeindustries, this situation creates its ownset of challenges as to how and where tobest allocate development funds, salesresources and manufacturing capacity.

As always, our sin-cere thanks to theengine manufactur-ers who invest timeand effort in com-pleting these marineorder surveys es-

pecially the mechan-ical drive propulsionorder survey. It is thissurvey, along withthe auxiliary genera-tor set and diesel-electric propulsionorder surveys, thatgive the most complete and accuratepicture of the marine diesel marketabove 0.5 MW. A

I Wrtsil Corporation (including): Wrtsil Italia, Italy; Dalian Marine Diesel, China; Hudong Heavy Machinery Co. Ltd.,

China; Yichang Marine Diesel Engine Plant,

China; 3MAJ, Croatia; Diesel United Ltd., Japan; Mitsubishi Heavy Industries, Japan; HSD Engine Co. Ltd., Korea; Hyundai Heavy Industries, Korea; H. Cegielski, PolandI Yanmar Diesel Engine

Marine Auxiliary Generating Unit EngineManufacturers Participating and ReportingOrders in this Survey

ICaterpillar Engine Division (includingCaterpillar Marine Power Systems)

I Cummins MarineI Daihatsu Diesel Mfg.I GuascorI Isotta Fraschini MotoriI MAN B&W Diesel Group (including

licensees)I MTU Friedrichshafen (including Detroit

Diesel)I Mitsubishi Heavy IndustriesI Niigata EngineeringI Rolls-Royce BergenI S.E.M.T. PielstickI Wrtsil Corporation (including licensees)I Yanmar Diesel Engine

Diesel-Electric Marine PropulsionManufacturers Participating and Reporting

Orders in this Survey

I Caterpillar Engine Division (including

Caterpillar Marine Power Systems)

I Cummins Marine

I Fairbanks Morse Engine

I Iveco

I Kawasaki Heavy Industries Ltd.

I MAN B&W Diesel Group

I MTU Friedrichshafen (including Detroit

Diesel)

I Rolls-Royce Bergen

I Wrtsil Corporation

Mechanical Drive Marine PropulsionManufacturers Participating and ReportingOrders in this Survey

I Caterpillar Engine Division (includingCaterpillar Marine Power Systems)

I Cummins MarineI Daihatsu Diesel Mfg.I DeutzI Fairbanks Morse EngineI GE TransportationI Guascor

I MAN B&W Diesel Group (includingMAN B&W Ltd., Frederikshavn, Holeby,Augsburg, Copenhagen and licensees):

Dalian Marine Diesel Works, China; Hudong Heavy Machinery Co. Ltd.,

China; Shanghai HHM Schangchuan Diesel

Co. Ltd, China; Yichang Marine Diesel Engine Plant,China;

Xin Zhong Power, China; Zhenjiang Marine Diesel Works, China; Adria Diesel d.d., Croatia; Brodosplit Brodogradiliste d.o.o.,

Croatia; Uljanik Strojogradnja d.d., Croatia; Hitachi Zosen Corporation, Japan; Kawasaki Heavy Industries Ltd.,

Japan; Makita Corporation, Japan; Mitsui Engineering & Shipbuilding

Co. Ltd., Japan; Mitsubishi Heavy Industries Ltd.,

Japan;

HSD Engine Co. Ltd., Korea; Hyundai Heavy Industries Co. Ltd.,

Korea; STX Corp., Korea; H. Cegielski, Poland; Bryansk Engineering Works, Russia; JSC Rumo, Russia; IZAR Construcciones, SpainI MTU Friedrichshafen (including

Detroit Diesel)I Mitsubishi Heavy IndustriesI Niigata EngineeringI Rolls-Royce BergenI S.E.M.T. PielstickI Vericor Power Systems

PhotocourtesyofBP

marine 2005

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