The yearly growth rate of approximately 19.5 percent since 2000 in Brazil’s shipbuilding industry, associated with investments amounting to $150 billion, has consolidated the sector in Brazil, Carlos Campos Neto, coordinator of the Applied Economic Research Institute (“IPEA”), told Agência Brasil.

IPEA’s study was based on contracts, both signed and expected, which aim to foster the development of pre-salt oil and deepwater exploration in the Northeast. It was presented today (Aug 14) at the Marintec South America – 11th Navalshore, in Rio de Janeiro, a gathering regarded as the main of its kind for Latin America’s shipbuilding and offshore industry. The event brings together leaders from over 17 countries, 380 brands and 12 international pavilions.

According to Campos Neto, the survey shows that “there’s [enough] demand for the naval industry for the next 25 years.” And this demand stands at about $97 million.

Carlos Campos Neto further highlighted the importance of Petrobras’s investments in the industry’s upturn: “What made it possible for the naval industry to rise again, and what will keep it steady for the next 25 years, is the offshore oil and gas industry, most of all.” The study reveals that Brazil’s shipbuilding industry reached its high point in the 1970’s, faced a decline in the 80’s, and its near-extinction in the next decade.

In the economist’s view, however, the Brazilian shipbuilding industry will not prove competitive in all of its sectors. In the construction of oil tankers, for instance, Brazil will not be powerful enough to compete, in terms of prices and costs, with China or Korea. On the other hand, Brazil has showed a good performance in the production of support vessels, offshore oil rigs and drill ships. “Our market, where Brazil has built up its structure and development, should focus on these three sectors, which have a lot of embedded technology. This is very good for us.”