Foundation of Cluster of Inland Shipbuilding/Shiprepair in Croatia

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European Inland Waterway Navigation Conference 27-29 June, 2007, Visegrád, Hungary Foundation of Cluster of Inland Shipbuilding/Shiprepair in Croatia Gordan KRPANEC*, Kalman ZIHA**, Boris LJUBENKOV** *Croatian Employers’ Association, Pavla Hatza 12, 10000 Zagreb, Croatia **Faculty of Mechanical Engineering and Naval Architecture, Ivana Lucica 5, 1000 Zagreb, Croatia Received: June 2, 1999. ABSTRACT The paper in the introductions shortly describes the idea of clusters in general and reasons for their implementation. Next it brings the description of the environment of Sisak-Moslavina region (SMR) in Croatia, its potentials in shuprepair/shipbulding, needs as prerequisites for foundation of a cluster. Finally, the methodology of cluster implementation on the example of Croatian Inland Shipbuilding cluster (CISC) in the SMR region is elaborated. The conclusions present the recent advances in CICS cluster implementation under the auspices of Croatian Employers’ Association (CEA) and support their usefulness. Keywords: cluster, inland, shipbuilding, shipping, Croatia, Croatian Employers’ Association 1 INTRODUCTION Different forms of collaboration and cooperation have been practicing thru industrial development. The cooperation is by all means the part of the mankind’s experience emerging from needs of survival, improving life and human nature. The cluster is a business association of users with common goal to promote the entrepreneurship and jointly contribute to industrial growth relaying on innovative knowledge based business solutions. Cluster is by definition an association of geographically concentrated industries and companies mutually horizontally and vertically related using the common specific economic infrastructure. The cluster initiative is a coordinated approach to increase of competitiveness and growth of clusters in regions. Participating companies, research, educational and development institutes, even governments in the cluster initiatives are supported through European Commission. The cluster initiative in Croatia is supported by the Ministry of Industry, National Commission for Competitiveness, Croatian Employers’ Association, and many other public and financial institutions having in mind the following goals of association in clusters: Active participation in industrial growth supporting the development of members Accumulation and availability of knowledge and data for members Provide organizational and functional support in development of members Grouping of activities, professional skills and continuous improvements may contribute to increase of the effectiveness of all members. The Ministry of Industry started in the year 2005 a project for implementation of clusters in which it states that the goal is to promote cooperation in order to motivate industrial associations to achieve higher level of finalization of common products. Among “55 proposals” of the National Committee for Competitiveness particularly important for cluster implementation is the 46. proposal to establish professional action

Transcript of Foundation of Cluster of Inland Shipbuilding/Shiprepair in Croatia

European Inland Waterway Navigation Conference 27-29 June, 2007, Visegrád, Hungary

Foundation of Cluster of Inland Shipbuilding/Shiprepair in Croatia

Gordan KRPANEC*, Kalman ZIHA**, Boris LJUBENKOV***Croatian Employers’ Association, Pavla Hatza 12, 10000 Zagreb, Croatia

**Faculty of Mechanical Engineering and Naval Architecture, Ivana Lucica 5, 1000 Zagreb, Croatia

Received: June 2, 1999.

ABSTRACTThe paper in the introductions shortly describes the idea of clusters in general and reasons for their implementation. Next it brings the description of the environment of Sisak-Moslavina region (SMR) in Croatia, its potentials in shuprepair/shipbulding, needs as prerequisites for foundation of a cluster. Finally, the methodology of cluster implementation on the example of Croatian Inland Shipbuilding cluster (CISC) in the SMR region is elaborated. The conclusions present the recent advances in CICS cluster implementation under the auspices of Croatian Employers’ Association (CEA) and support their usefulness.

Keywords: cluster, inland, shipbuilding, shipping, Croatia, Croatian Employers’ Association

1 INTRODUCTION

Different forms of collaboration and cooperation have been practicing thru industrial development. The cooperation is by all means the part of the mankind’s experience emerging from needs of survival, improving life and human nature. The cluster is a business association of users with common goal to promote the entrepreneurship and jointly contribute to industrial growth relaying on innovative knowledge based business solutions. Cluster is by definition an association of geographically concentrated industries and companies mutually horizontally and vertically related using the common specific economic infrastructure. The cluster initiative is a coordinated approach to increase of competitiveness and growth of clusters in regions. Participating companies, research, educational and development institutes, even governments in the cluster initiatives are supported through European Commission. The cluster initiative in Croatia is supported by the Ministry of Industry, National Commission for Competitiveness, Croatian Employers’ Association, and many other public and financial institutions having in mind the following goals of association in clusters:

Active participation in industrial growth supporting the development of members

Accumulation and availability of knowledge and data for members

Provide organizational and functional support in development of members

Grouping of activities, professional skills and continuous improvements may contribute to increase of the effectiveness of all members.

The Ministry of Industry started in the year 2005 a project for implementation of clusters in which it states that the goal is to promote cooperation in order to motivate industrial associations to achieve higher level of finalization of common products. Among “55 proposals” of the National Committee for Competitiveness particularly important for cluster implementation is the 46. proposal to establish professional action

groups for clusters implementation and pilot-projects with governmental support. In the same time started the cluster manager educations and promotion of the idea of clusters.

Common characteristics of regions in which a cluster initiatives could and should bring progress is poverty and unemployment. Some of the regional problems are the consequences of long period of centralized economics in the past and of recent devastations in the war time. The education system still does not provide enough entrepreneurs for modern market economy. Therefore is in these regions very important to undertake activities that can contribute to industrial and overall development. Implementation of clusters does not contribute immediately and directly to industrial development but as it is expected; well conceived cluster organization can motivate people and companies in attempt of industrial revival of a region. In SMR is by support of the National Center for Clusters established the Croatian Inland Shipbuilding Cluster (CICS). At the very beginning overall 24 companies among which 18 were from SMR expressed their readiness to join the cluster. The cluster initiative is closely related to the repair shipyard in Galdovo, close to city and port Sisak on river Sava based on the expectation that the development of shipbuilding and shipping activities may contribute to restructuring and revival of the industry in the region. The CICS opened the office in Sisak and in the beginning it is planned to develop firstly the complete repair of inland vessels in the renewed repair facilities. It is planned that in next step could be development of new buildings based on the existing infrastructure and growth of experience, knowledge and human resources.

2. INSTITUTIONAL ENVIRONMENT FOR CLUSTER IMPLEMENTATION

2.1 The geographic positionMost of the companies in the cluster are from the SMR region on the southern part of the central Croatia, Fig. 1. The center of the cluster is in city and port Sisak on river Sava, the administrative center of the SMR. The region occupies an area of 4468 square kilometers divided in 19 units of local administrations (6 cities and 13 counties), Fig. 2. The comparative advantages of the region are its connections: the river Sava waterway, the planned highway Zagreb-Sisak, the planned trans-european railway and the vicinity of the airport Zagreb.

Fig. 1 The position of SMR in Croatia Fig. 2. The regional administrative subdivision

2.2 The population

The population in SMZ consists of 185387 permanent residents that is 4,18% of the Croatian population. The average number 41,53 of residents per square kilometers are significantly less of the average 78,40 in Croatia. The female population is 51,92% and the mail is 48,02%. The young population (0-14 years) makes 16,15%, the population capable to work (15-65 years) 65,48% and the older population (over 65 years) 18,11%.

2.3..The economyThe industry of the region is mostly oriented to metallurgy, oil and chemical industry, agriculture and commerce. In the year 2005 there were 4671 active entities, 1091 in commerce, 2606 trade, 43 communities, 234 enterprises and 698 other institutions. Most of the entities, about 25% are dealing with trade, about 25% is in field of services since the production is with 13% on the third place. Real estates participate with 8%, building with 6% and the rest of activities are below 5%. The 61,67% of entities and 52,81 traders are concentrated in two cities of the region – Sisak and Kutina.About 94,7% of smaller companies employ 32,8% of all the employees; 4,3 middle size companies employ 24,6% and the 1% of bigger companies employ 42,6%.

2.4..The tradeTrading in the SMR region has a long tradition in past mostly linked to several big companies. In the year 2005 there were 2606 trades with 7349 employees, that is 68% of the activities. Dominant trade activities are the commerce and services (particularly building) with 57% of all entities in the region; production takes 14% and tourism takes 12,5%.

2.5..The employmentThe unemployed population as a consequence of a relatively long period of stagnation in the region provides a reserve of work power. Moreover, in the year 2005 there were 56,2% competent professional workers among the unemployed population, Table 1. In the unemployed population there is 56% of female.

Table 1. Unemployment structureEducation level Unemployed Structure [%]

No elementary education 1773 9,5Elementary education 5125 27,5Secondary education 10979 58,8Higher education 765 4,2Total 18642 100

3. THE IMPORTANCE OF INLAND SHIP REPAIR IN CROATIAThe safety of inland navigation is imposed by lows and regulations. In despite of the fact that only 1% of goods are transported on rivers, it is expected that the importance and efficiency of inland water transportation will grow in the next future. Environmental protection and lower costs of intermodal transportation relaying mostly on railway and inland water transport in contrast to the overloaded road transportation will hopefully contribute to increase of interest for inland shipbuilding and repair. A great impetus to intermodal transportation in Croatia is expected by building of the channel Danube-Sava which is planned to start of building in next years. For a longer while ship repair of the Croatian inland fleet was performed in repair yards abroad, mostly on Danube in former Yugoslavia. Therefore the ship repair capacity in the region is of particular interest for Croatia. Moreover, in the SMR region there is already a ready made slipway in Galdovo near Sisak, Fig. 3, primarily provided for ship repair, presented on EIWN conferences [1] [2]. In addition to the new slipways there is a long-

term industrial tradition in services and production as well as an accumulated experience from highly developed shipbuilding on the Adriatic coast of Croatia, high level education in naval architecture on nearby University of Zagreb and Marin Institute that earlier participated in inland shipbuilding development. And finally, the war in Croatia devastated the inland shipping and a growth of river transportation in the future will for sure help to strengthen the formerly successful shipping company Danube Lloyd from Sisak.

Figure 3. The new slipways on river Sava in Galdovo nearby Sisak

3.1 The domestic needs for inland water vesselsThe lack of maintenance and regulations of rivers in the war times in former Yugoslavia as well as the destruction of bridges on Danube in 1999 during the bombing of Serbia reduced the inland water fleets and many vessels are turned to scrap. It is particularly true for river Sava where most of the ships were over 25 years of age. The announcement of the orientation to intermodal transportation in Europe and in Croatia already brings new orders for working and patrol boats, Fig. 4, and it is in prospect an increase in inland water shipbuilding in the next future.

Figure 4. Starts of newbuildings on river Sava in SMR region

3.2 The international needsThe EU Committee issued “Visions to 2020 inland water transportation and operations key factors for development and future of Europe” forecast that till 2020 about 50% of regional transportation will be transferred to inland waters and short sea transport among main and smaller ports reducing in such a way the traffic loads on railways and roads. In a prospective is that the inland water transportation could rich the level of the now days short sea transport. Recognition of the environmental protection turns the interest of the EU towards the stimulation of inland water transportation and for sure will result in improvements in vessel design and increase in needs for new buildings. As a crucial factor for the development of shipbuilding and repair activities in the region is

the need to improve the Sava river capacity to the fourth category. The availability of the Danube-Sava channel would absolutely improve prospects of inland water shipping and shipbuilding in Croatia.

3.3 The domestic situationAfter the disintegration of the former Yugoslavia most of the inland water shipbuilding and repair capacities were on river Danube outside Croatia. The ship repair of the Croatian fleet has been performing abroad and some necessary new buildings were ordered in shipyards on the Adriatic coast and transported to the rivers. The difficulties of such an approach of building inland vessels in shipyards at sea were too great to be efficient but the sea shipyards industrial experience could be very useful in the revival of inland water shipyards activities.

3.4 The environmental factorsThe experience in complex sea shipbuilding on the Adriatic coast of Croatia normally exceeds the needs encountering in inland shipbuilding. However, these accumulated knowledge and experience is on disposal to the planned development of inland water shipbuilding. Moreover, the educational possibilities on the technical high schools and universities can assure the necessary engineering experts even for the inland shipbuilding. Of particular support is the Department of Naval Architecture and Ocean Engineering on the Faculty of Mechanical Engineering and Naval Architecture as well as the Marine Institute in Zagreb which are ready to participate in education of engineers for inland shipbuilding and in research and development projects. Some of the competent workers from the former shipyard/ship repair facility “Brodoremont” are still ready to start to work in new circumstances with their past experience. The SMR region itself covers a lot of activities needed in the shipbuilding/ship repair industry. The luck of governmental subventions is a drawback, but the even greater disadvantage is the weakness of shipping facilities in the region and wider which has not enough needs to support the shipbuilding/ship repair revival. However, the completion of the new slipways on river Sava in Galdovo near Sisak dramatically changes the circumstances in which the revival of shipbuilding/ship repair industry appears to be feasible. But the most effective impact could be the EU and Croatian Government decision to support the intermodal transportation as a strategic long term goal.

4. SUMMARY OF CLUSTER MEMBERS ACTIVITIESThe cluster implementation methodology starts with an inquiry to each of the potential members – at present 16 entities expresses their good will to join the cluster. The data collection is not necessarily always complete and the real structure of the cluster is not immediately attainable.

4.1 The ownershipsTwo companies are entirely governmentally owned, one of them s in the process of privatization, two of them are partly governmentally and partly privately owned and the remaining twelve are in private ownership.

4.2 The dynamics of the business activitiesThe inquiries is statistically analyzed in the period of three years, Table 2.Table 2. Business activities in the years 2003-2006 – financial data

Yearly financial

data

2004 2005 2006Mean(SD) Median Mean

(SD) Median Mean.(SD) Median

Income 17.499.271(36.842.918) 2.533.329 21.509.731

(39.931.453)2.957.4

8621.859.833

(41.603.191)3.552.60

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Profit 466.416(1.401.911) 31.300 666.146

(1.557.508) 60.000 708.433(1.725.306) 45.000

Export 243.566(461.031) 22.500 5.100.639

(15.115.971) 63.784 73.936(95.158) 28.500

R/D 196.500(362.503) 23.000 354.800

(479.265) 20.000 644.000(867.110) 20.000

Added value

3.139.081(4.282.182) 1.301.611 3.070.644

(4.946.397) 922.354 3.624.839(6.430.749) 619.678

Employees 97(200) 13 101

(193) 20 98(194) 21

4.3 The principal productsThe production profile of the members are analyzed and presented in Table 3.Table 3. Key products of the cluster members

Activity descriptionDiesel motor according MAN B&W licence.Production of iron castings for shipbuilding, wagon elements, railway maintenance, castings for stone-working machines and valve elements.Production of joinery, sticking plates and wooden articles in small series.Production and reparation of ship’s, water, process and energetic pumps.Devices for corrosion protection, devices for washing cleaning and grease removing, devices for electronic protection, devices for corrosion protection in packing and transport, devices for metal coating, protection of pipelines for oil, gas and water.Work of elements and units for machines and production lines maintenance. Service includes damage analysis, drawings, and definition of material, technology, production and fitting. Elements and tools for cutting machines are offered. Own product is air relief valve for hydrant.MECHANICAL WORKSHOPProduction of machine elements and units, welding and material heat treatment.MACHINE MAINTENANCERepair, locksmith work, fitting, elements and outfit maintenance (i.e. cranes, machines, energetic installation, balances, lubrication systems…).ELETRICAL MAINTENANCEIt includes works on automation and electricity like works in electrical installation, electro motors, lighting, earthling, cranes, transformers, etc. Also, works on telecommunications devices, fire protection systems, regulatory systems and medical devices are included. There is possibility for software and special devices production according to customer demands.Repair and maintenance of motors.Production of plastic articles (foils and sacks) and plastic elements (pipes, profiles, plates).Personnel education for work in metallurgy.Production engineering.Repair of hydraulics, control, reconstruction, and design of hydraulic systems. Maintenance and sale of machines, devices and hydraulic tools.Production of rubber products (rubber carriers, washers).Repair of grey iron elements by welding (Metaloke process).Production of hydro insulation materials, glues for civil engineering and levelling floors. Service includes insulation of buildings.

Production of plastic elements and profiles by injection mouldingMaterial coating for shipbuilding, industry, civil engineering and food industry. Work of metal outfits.

4.4 The costumersMost of the cluster members most of their costumers have in Croatia. On the second place are the markets in the former Yugoslav republics. Only few biggest potential cluster members can export to foreign EU markets.

4.5 The capacity utilizationThe average overall capacity as reported in the inquiries is utilized by 79% with standard deviation of 23%.

4.6 The number of employeesNumber of employees varies between one and 730. The average number of employees is 79 with standard deviation of 189.

4.7 The educationThe education level of employees of the cluster members is given in Table 4.

Table 4. The educational levels in the clusterNo elementary Elementary Secondary Higher High

1,2 % 17,9 % 47,8 % 10,4 % 22,7 %

4.8 Number of employees in R/DThe methodology of simple arithmetic mean calculation gave an unrealistically high percentage of 29% employees of cluster members which are participating in research and development activities.

4.9 Personal income (above the Croatian average)The average number of permanent employees with personal income that exceeds the average income in Croatia in the cluster members is 35,75%.

4.10 InnovationsOf all potential cluster members 62,5% entities reported that have implemented in last three years some innovations or improvements, according to Table 5.

Table 5. Implementation of innovations and improvementsType of innovation/improvement Part

New technologies 37,5%Entirely new or improved products or services 18,75%Partially improved products or services 31,25%New processes and procedures 18,75%

Note that due to relatively small number data the results have to be considered with care.

The cluster members declared the importance of their innovations according to Table 6.

Table 6. The importance of the implemented innovationsInnovation Yes (%) No (%)

For the company 31,25 68,75

For the field 12,50 87,50For Croatia 18,75 81,25Global 6,25 93,75

4.11 Readiness to invest in cluster developmentExpectedly, the most of the potential cluster members expressed readiness to invest their human and financial resources according to Table 7.

Table 7. Readiness to invest human and financial resourcesInvestment in cluster of Yes (%) No (%)

Management support 43,75 56,25Best employees support 50,00 50,00Financial support 12,50 87,50

5 CLUSTER PRESENTATIONThe next step in cluster implementation methodology is the cluster map presentation. The CISC cluster map in SMR region is the result of a relatively rigid structure with many constraints. The constraints are imposed by the governmental and ministry lows and regulations, international and local standards and certifications as well as by classification societies, in this particular case by Croatian Register of Shipping (CRS) dealing with inland shipping and shipbuilding in Croatia.

Figure 5. The CISC cluster map in SMR

6. A NEED / REASONS FOR THE CLUSTER DEVELOPMENT

6.1 Reasons to be included in the cluster

A definition of the cluster scope was the first issue in the deliberation on the motives for the creation of the cluster; it is necessary to establish whether the operation of the cluster would be limited only to the inland/river shipbuilding industry, or the small and „large or capital“ maritime shipbuilding industries would be also included in it. The definition of the scope is essential for the inclusion of potential members in the cluster operation. As a conclusion, the idea occurred that the cluster should be open for all „types“ of the shipbuilding industry, but that the generator of the initiative should be the new slipway for the river ships into the Sava River in Galdovo/Sisak, Fig. 6, that is in the first place the Croatian Inland Shipbuilding Cluster – CISC.

Figure 6. Testing repair capabilities on the new slipways in Galdovo

The methodology applied in cluster implementation supports the workshops for all potential cluster members. The essentail issues for cluster implementatio are raised during the first round of the workshop such as:a. Exploitation of common potentials: it is necessary to integrate the existing

resources, technology, knowledge and services between the cluster members. The integration between the companies is normally only sporadic and not based on a longer-term planning. This results in the situation that some of the companies are not able to deliver all the requested amounts of products, while the others remain unemployed. The cluster management collects all the data relevant for the business development.

b. Consulting and certification services: As the shipbuilding industry requires a complyment of services and products with quality standards (ISO 9001), environmental safety (ISO 14001) or with the CRS approvals, a cooperation is necessary in order to accelerate and facilitate (organizationally and financially) the certification and approvals required for a normal operation of any company.

c. New knowledge and technologies: A continuous need to implement the new knowledge and technologies is expensive at the level of a particular business entity; within the cluster, a less expensive and simpler access to new knowledge and technologies should be allowed for the cluster members by the relevant colleges, institutes and consulting companies. A transfer of new knowledge and technologies to all members, even to the members that could not afford it, should be also enabled.

d. New business partners and new jobs: All cluster members expect an increased scope of business, the opening of new businesses, as well as the integration with new business partners. The objective of „cluster“ partnerships is a long-term

business planning: the engagement of capacities, selection of staff and equipment, and new investments.

6.2 Areas of cooperation

A portion of the second part of the workshop was already related to answers to issues raised during the first round of the workshop. The opportunities for the cooperation were not set hierarchically, but only named individually during the discussion and providing of answers to several questions raised:

Joint entering the market: through the contracting of projects or taking part in the fairs vitally important for the cluster. In the larger businesses, the cluster appears as the implementing agency of the business and lobbies for the interests of the cluster members.

Joint procurement: enlargement of orders and selection of the best supplier, with a constant improvement of the suppliers’ financing terms and reduction in the procurement of dependent costs of import/export (transportation, freight forwarding, customs, etc.).

Cooperation during the development planning: definition of the common development objective, responsible agency and contractor of developmental activities.

Distribution of tasks according to optimal capacities (specialization) and the efficient outsourcing: The cluster members should focus on their core activity and specialize maximally for that activity. In this way they will improve both their efficiency and competitiveness. The specialization brings us to the need for an allocation of the less specialized activities between the cluster members, so that they can perform such activities more efficiently and with a better quality, or that their capacities are available when required at a specific time.

Integration of activities within the cluster: During the production process, all technological, administrative and the other activities required for a specific product should be integrated.

Process control: Production should be monitored during the processes, and a quality process management should be ensured with a consistent realization of the product and in complyment with the client’s demands and requirements of applicable regulations.

Development of a joint model of training, consultations, project implementation and research: very high costs of specialized knowledge, consultations, projects and research should be partly shifted on the colleges and institutes already having the required personnel and experience.

The cluster provides assistance to its members in their assets management: with the exchange of information (availability of capacities, status of supplies, human resources) the cluster management facilitates the management of the overall cluster potentialities.

The role of the cluster manager: the cluster manager should be the centre that will allow for a quick exchange of information between the cluster members; he/she will take care of the integration, updating, organization and standardization of the cluster members’ business. The cluster manager should be responsible for the development of the database on the members’ resources and should include new members for the lacking areas. As the cluster representative, the cluster manager would provide assistance

during the contacts with financial institutions and the relevant government agencies and ministries.

Unification of resources: it is necessary to unify the resources and provide the service with a ship as a final, primarily domestic, product.

6.3 Impediments to cooperation

There were no direct discussions on the impediments to cooperation. Conclusions related to these impediments are based on the interpretation of issues that the cluster members could not agree upon:

Initial lack of confidence: As this was the first workshop for various types of representatives, some of them already familiar with each other from the previous meetings, the main motivation to come was for many participants, to all appearances, a curiosity to see what is this all about; in some of them one could even perceive an initial doubt, as if this were yet another futile meeting, serving only to its organizers and much less to its participants.

Basic existential problems of the companies: Excluding the very rare participants that are recording good operating results, the majority of participants were eager to address the basic existential problems related to their business. In the first place, a need was expressed for an increased employment of their capacities. During the discussion, one could conclude that due to the seriousness of the cluster’s economic moment no one was able to recognize the social components and relations of solidarity, but most of the expectations are usually being directed towards the leading firms when the less successful cluster members are looking for a job or employment.

A lack of responsible agent companies – leaders: the essential comment was that the workshop was not attended by the representatives of the potentially leading firms, the firms not yet recognized or identified sufficiently.

The cluster scope: Some of the workshop participants came (and left) with a dilemma regarding the cluster limits. This dilemma is present not only due to the regional extending, but also because of the content-related understatements. Namely, the cluster has the regional characteristics; however it includes, already now, the members with the national and global significance. Of course, this is favourable, even indispensable, however it is the great unknown how will they operate at the local level (how will they bring a less expensive labour force, employ their own employees rather than the local ones, etc.). From a content-related viewpoint it is difficult to defend the focus of the cluster being on the river shipbuilding industry, when it turned out that there are successful producers of maritime vessels in the region, and that their experience showed that only 3 percent of all interests in the shipbuilding are in the vessels intended for the inland navigation.

7 VISIONS, MISION AND STRATEGIC GOALS OF THE CLUSTERThe cluster vision in this report is presented regardless of the fact that the initial gathering of the potential cluster members was movated by utilization of the newly slipways in Galdovoear Sisak.

7.1 Cluster visionsThe members of CISC using own knowledge and experience jointly design, build and deliver from a modern modular shipyard compettitie vessels with at least 50% parts and

components of Croatian origin and in same time provide services of repair using slopways in Galdovo.

7.2 Cluster missionBased on own knowledge and experience, following the needs and requirements of european shpping, implementing the modern technology, the CISC delivers to its costumers vessels of high quality and in the same time assures to cluster members long term bussines stability.

7.3 Clasters’ strategic goalsStrategic goals are the steps towards the implementation of the claster visions and represent the preconditions for accomplishment of the cluster mission. The goals always prescribe the visions and indicate activities/fields of the utmost importance in the future. The discussions among claster membners during workshops enlightend the ordering of goals, see Table 8.

Table 8. The ordering of clusters’ strategic goals

GOALSa. The inventory of clusters’ resources and identification of missing resources:

Prepare a unified data base of mashine, technological, logistic, human and other resoures as well as of missing resources among cluster members

b. The complete ship repair service on slipways and workshops in Galdovo:It is necessary to link the existing resources, technologies, knowledge and services amog cluster members in order to provide a complete repair service on the existing slipways and worksops in Galdovo.c. Market analysis and cluster prospectives (visions):It is necessary to estimate tha shiprepair market requirements, own potentials and find out if there is a need todeveope the infrastructure for modular building of ships.d. Education and qualification R/D in inland shipbuilding and shipping:Additional education for specialist in shipbuildig (particularly inland), M.Sc., B.Sc., workers, welders; Improvement od techology in imland shipbuilding.e. Transportation market analysis; promotion of the inland water navigation

and intermodal transportation: Statistics of the operational fleet on Danube and Sava; Find out the needs for types and numbers of vessels; Find out the method of financing newbuildings; Promote imland navigation through domestic and international agencies and governmental institutions.f. Financial support for modular technology of shipbuilding:If there is a realistic need for intensive newbuildings of ships, find financial and human resources for establishing of a modular shipyard (funds, governmental, private investors); Agreement on financing of newbuildings with shipping companies.

The way how to achieve the strategic goals is presented on flowchart, Fig. 7.

Figure 7. Flowchart of the strategic gaols

9. CONCLUDING REMARKSThe initiative of the Croatian Employers’ Association to found the Cluster of Inland shipbuilding in Sisak-Moslavina region at the beginning of 2007. provoked an unexpectedly great interest of business entities of the region. Moreover, the interest exceeds regional borders by inclusion of some bigger transregional companies. The business connections that are already established among potential cluster members encourage the next efforts in the CISC cluster implementation.

10. REFERENCES[1]Uroda, T., Žiha, K., Brnardić, N., Pekas, P.: Feasibility study on docking using laid-up vessels, European Inland Waterway Navigation Conference EIWN, Budapest, Hungary, 2001.[2] Žiha, K., Brnardić, N., Zaplatić, T., Pekas, P., Bilić-Prcić, I., Uroda, T.: Conceptual Design of a New Shipyard on River Sava, European Inland Waterway Navigation Conference EIWN, Gyor, Hungary, 2003.