Ship repair is a yo-yo business. The first half of 2024 was very slow, with many ships held in the Persian Gulf and shipowners preferring to keep them at sea due to high freight rates. Now, certificates are expiring and ships have to enter dry dock for repairs and periodic inspections. Lisnave, which works for the international market, is already refusing some orders due to lack of dry dock availability. In Portugal, the annual market is worth around 250 to 300 million euros, having reached 273 million in 2024.
Portugal has a privileged geography for this business, positioned almost in the middle of the Atlantic at the crossroads of many routes, with more than 300 ships passing daily along the Portuguese coast. The climate also favors operations, as raining less than in Northern Europe is an advantage for work such as painting ships. The major threat comes from Turkey, which is closer to the Suez Canal and benefits from cheaper labor and state subsidies. Nevertheless, confidence in Portuguese shipyards is considered superior.
The Arctic route is becoming an alternative with the melting ice, with Chinese ships already using it, which could take vessels away from the Portuguese coast. Nuno Antunes dos Santos, who chairs the naval maintenance, repair, and conversion area at Sea Europe, also warns about the burden of European environmental requirements, which make repair more expensive in Europe and can push work to Asia. The solution, he argues, is not about lowering European standards, but about compensating those who choose to repair in Europe.
There is also a shortage of specialized workers. Portugal trains good engineers, but not enough welders, mechanics, or painters. Lisnave has a school and trains dozens per year, paying scholarships to trainees, but many leave for abroad. Europe, after having lost most shipbuilding to Asia, risks also losing repair capacity, further increasing that dependency.
