As part of its efforts to upgrade cost competitiveness of the domestic shipbuilding industry, the South Korean government revealed plans to develop smart shipyards equipped with artificial intelligence (AI) technology.
As such, the government will begin a preliminary feasibility study of the Korean Smart Shipyard (K-Yard) project within 2018. The total budget of the project is estimated at 400 billion won (US$360.04 million). From this, 250 billion won (US$225.02 million) will source from the central government and 150 billion won (US$135.01 million) from the local government and the private sector, Business Korea reported.
More specifically, the first step of the project is to develop a smart shipyard simulation model and set up a virtual reality (VR)-based production platform that allows one to track the whole production flow.
Secondly, the government will introduce a system that allows one to monitor the location of materials and blocks using technologies like AI and the Internet of Things. Through the K-Yard project, the government expects to raise the productivity by 20% and lower the production cost by 10%.
This will also help the industry set up the best shipbuilding model and adapt it to two small and mid-size shipbuilders that need innovation and restructuring.
The smart transformation of the small and mid-size shipyards comes as South Korea seeks to take back the mid-size bulk and tanker markets from China. These shipyards, falling behind in research and development (R&D), cannot reach the Chinese price competitiveness. Notably, domestic small and mid-size shipbuilders won orders for only four tanker vessels in Q1 2018.
The announcement comes after a relevant statement by President Moon Jae-in in Geoje on 14 September that the government would promote the shipbuilding industry.
