RECENT DEVELOPMENTS IN THE MERCHANT SHIPBUILDING INDUSTRY IN POLAND

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00935A000400320002-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 15
• Document Creation Date: November 9, 2016
• Document Release Date: August 25, 1998
• Sequence Number: 2
• Publication Date: August 16, 1957
• Content Type: IM

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INTELLIGENCE MEMORANDUM
RECENT DEVELOPMENTS IN THE MERCHANT SHIPBUILDING INDUSTRY
IN POLAND
CIA/RR IM-455
16 August 1957
WARNING
THIS MATIMIAL CONTAINS INFORMATION A 'ECTING THE
NATIONAL DEFENSE OF THE UNITED STATES WITHIN THE
MEANING OF THE ESPIONAGE LAWS, TITLE 18, USC, SECS
793 AND 791, THE TRANSMISSION OR RELATION OF
WHICH IN ANY MANNER TO AN UNAUTHORIZED PERSON IS
PROHIBITED BY LAW.
CENTRAL INTELLIGENCE AGENCY
Office of Research and Reports
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CONTENTS
Page
Summary . .
1.
Production During 1956 . . . . . . . . . . .
2
2.
Elimination of the Bottleneck in Production of
Diesel Engines . . . . . . . . . . . . . . . . .
2
3.
Expansion of Shipyards . . . . . . . . . . . . .
3
1.
Independence from the Council of Mutual Economic
Assistance (CWA) . . . . . . . . . . . . . . .
Appendixes
Appendix A. Production of Merchant Vessels in Poland,
1956 . . . . . . . . . . . . . . . . . 7
Appendix B. Methodology . . . . . . . . . . . .
Appendix C. Source References . . . . . . . . . . . 13
Following Page
Poland. Production of Merchant Ships, by Shipyard,
1956 ........................... 2
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CIA/RR IM-L+55
(ORR Project 35.1970)
RECENT DEVELOPMENTS IN THE MERCHANT SHIPBUILDING INDUSTRY
IN
The merchant shipbuilding industry in Poland is preparing to in-
crease its sales of merchant vessels** to the Free World and already
has accepted an order from a Swiss firm for a 35,000-deadweight-tone
tanker not included in the Polish First Five Year Plan (1956-6o).
Such sales to the Free World manifest the growing confidence of Poland
in the capabilities of its new shipbuilding industry.4
Contributing to the improved position of the shipbuilding indus-
try in Poland are the following developments: (1) major steps toward
eliminating the bottleneck in production of diesel engines to supply
Polish shipyards, (2) plans to expand the capacity of Polish shipyards,
(3) the declaration of independence of the Polish shipbuilding industry
from the Council of Mutual Economic Assistance (CEMA -- Sovet Ekonomi-
cheskoy Vzaimopomoshchi), and (4) the actual accomplishment by the in-
dustry in 1956.
* The estimates and conclusions contained in this memorandum repre-
sent the best judgment of ORR as of 15 July 1957.
** The term merchant vessel as used in this memorandum includes mari-
time vessels, fishing vessels, and inland vessels. This memorandum
covers Polish production of maritime vessels and fishing vessels only.
Production of inland vessels is considered negligible.
*** The deadweight tonnage (DWT) of a vessel is the carrying capacity
(in tons of 2,2JO pounds) of the vessel. It includes the crew and their
effects and all items of consumable or variable load such as stores,
fuel, and cargo. The deadweight tonnage is the difference in tons be-
tween full load displacement and light ship displacement. Light ship
displacement is the weight (in metric tons) of the vessel complete,
ready for service in every respect, including permanent ballast and
liquids in the machinery at operating levels but excluding the crew
and their effects and any items of consumable or variable load such
as stores, fuel, and cargo.
**** The first maritime cargo vessel produced by a Polish shipyard
was the Soldek, completed in 1949.
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The Polish record of shipbuilding during 1956 was impressive.
Polish production during 1956 included 57 merchant vessels* with a
total value estimated to have been 1955 US $71 million..**
1. Production During 1956.
Production of merchant vessels by the shipbuilding industry in
Poland during 1956 amounted to 112,000 DWT (96,000 gross register
tons***), or 57 vessels ranging from 110-DWT fishing cutters to
10,000-DWT cargo vessels. In terms of vessels launched by the ship-
building countries of the world as listed by Lloyd's Register of
Shipping, Polish production ranked eleventh. It is estimated that
the value of Polish production in 1956 was $71 million, compared
with $58 million during 1955. Considerably more than three-fourths
of the 112,000 DWT were produced by the Gdansk Shipyard. A cate-
gorization of Polish production, by type of vessel and by shipyard,
is shown in Appendix A. A comparison of Polish shipyards, in terms
of production, is shown in the chart.****
2. Elimination of the Bottleneck in Production of Diesel Engines.
The most important single development in the shipbuilding in-
dustry in Poland during 1956 was, perhaps, the great advance toward
* This production is the total of vessels under construction and
already completed. It therefore differs from production measured
only on the basis of vessels launched or completed.
Estimated cost of producing the same tonnage of similar vessels
in the US. Dollar values are given in 1955 US dollars throughout this
memorandum.
** Gross register tonnage (GRT) is a measure wherein the entire
internal cubic capacity of the vessel is expressed in register tons
(100 cubic feet to the ton). Not included in the measurement are
certain spaces such as peak tanks and other tanks of water ballast,
open forecastle, bridge and poop, hatchway excess, certain light and
air spaces, anchor gear, steering gear, wheelhouse, galley, cabins
for passengers, and other minor spaces specified by law.
* Following p. 2.
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SECRET
POLAND
Production of Merchant Ships
by Shipyard, 1956
(Thousand deadweight tons)
SECRET
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the elimination of the bottleneck. in production of diesel engines
for merchant vessels. The H. Cegielski Plant in Poznan already has.
begun production of engines for deep-sea fishing cutters. This type
of engine formerly was imported from Sweden and will be the first type
of marine diesel engine to be produced in Poland. Until 1957, all
marine diesel engines for vessels produced in Poland had to be imported
in exchange for scarce foreign currency. i/Arrangements for production of marine diesel engines for maritime
vessels have been completed under a licensing agreement with the firm
of Sulzer Brothers, :Limited, in Winterthur, Switzerland. Initially
the engines will be assembled from parts imported from Switzerland, and
gradually these parts will be produced in Poland. The first engine
under this license is scheduled to be completed in 1958. 0/ According to
a Polish periodical, the number of diesel engines to be produced by Poland
under the terms of the license from the Sulzer company is as follows /:
Size of Engine
Year
7, 800
Horsepower
11,700
Horsepower
1958
1
0
1959
2
0
1960
3
0
1961
11
0
1962
7
4
1963
5
6
1.96+
5
10
1.965
5
10
The Maschinenfabrik Augsburg-Nue.rnber.g Aktiengesellschaft, Augsburg,
West Germany, has contracted to supply five 4,800-horsepower marine
diesel engines by 1958 for the 6,000-DWT freighters being built at
the Szczecin Shipyard. In addition, the Sulzer company will deliver
complete marine diesel engines for 10,000-DWT cargo vessels.
3. Expansion of Shipyards.
By drawing up plans to add additional capacity in the form of
shipbuilding ways, Poland has manifested confidence in the ability
of its shipbuilding industry to produce and sell merchant vessels
* For serially numbered source references, see Appendix C.
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on the world market. The Paris Commune Shipyard, Gdynia, plans to build
additional ways north of its present site, one to accommodate 5,000-
DWT vessels and the other 20,000-DWT vessels. Under they First Five
Year Plan (1956-60), Poland is scheduled to rebuild the Vulcan Ship-
yard, Szczecin, and to put into operation 2 shipbuilding ways which
are suitable for vessels up to 25,000 DWT. The Vulcan Shipyard will
produce its first vessel, one of 12,000 DWT, in 1960.
4+. Independence from. the Copncil. of Mutual Economic Assistance (CEMA).
With respect to its shipbuilding industry,. Poland no longer is
bound by CEMA. g The independence of action thus attained will give
the shipbuilding industry in Poland a flexibility that it has hitherto
not had. This flexibility is important because the plans of a shipyard
to produce merchant vessels must be adapted to the needs and desires of
the customers of the shipyard, and not the reverse.
Poland in the future will follow its own course by building the
merchant vessels it needs for its on merchant fleet and for export
to countries of the S:ino-Soviet Bloc as well as for sale on the world
market. The major customer of the shipbuilding industry in Poland
will still be the USSR. Nonadherence to CEMA does not abrogate the
Polish-Soviet trade agreement. Because sales to the Free World are
a source of hard currency with which Poland can buy sorely needed im-
ports,. however, it is expected that maximum efforts will be made by
Poland to augment sales of vessels to the Free World.
Vessels to the Free World,
As if to show its confidence and an independence of CEMA plans
and to demonstrate its desire for foreign orders, Poland has accepted
an order for a merchant vessel that was not provided for in its First
Five Year Plan (1956-60) and which is much larger than any the ship-
building industry in Poland ever has produced. Because the Swiss
Atlantic Line ordered a 35,000-DWT tanker from the Gdansk Shipyard,
Poland has had to revise its First Five Year Plan to include produc-
tion of this tanker. The Swiss representative who visited Poland to
consummate this deal is reported to have discussed future production
of four 35,000-DWT tankers and to have offered to provide engines for
the tankers and even some investments for the shipyard. Work on the
prototype is to begin in 1958. J
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The sale of a trawler to a British purchaser has been reported. 8/
Poland already has on its order books a sizable order from Brazil for
merchant vessels valued at about $10 million. The types of vessels
involved in this order, however, are those already in production in
Poland -- 3,200-DWT colliers, 5,000-DWT tramps, and 110-DWT fishing
cutters. 2 Poland also has made overtures to Ceylon, 10 Indonesia, ll
and Chile 12 for the sale of various types of vessels but so far has
not delivered any vessels to these countries. The 1956 Polish-Ceylonese
trade agreement included a limit of #200,000 for vessels and fishing
trawlers. 13 Indonesia is reported to have contracted for 5 small
(about 1,000-DWT) vessels. 14+
The latest reported sale of vessels occurred on 13 July 1957, when
official representatives of the Central. Maritime Office (Centrala
Morska -- Centromor) signed a contract in Poland with Egyptian repre-
sentatives for the sale of two 5,000-DWT and. two 3,200-DWT cargo
vessels to be delivered to Egypt in 1958. 15
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B?E-G-I-~-T
APPPI+ pIX _A
P1 ODUCTI;ON OF ME'RC US , L4 IN POLAND
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APPENDIX B
METHODOLOGY
Data for the latter part of 1956 are based on reports received
by CIA on a confidential basis from Lloyd's Register of Shipping,
London. These reports were supported by many others from the Polish
Press Summary of the US and British Embassies in Warsaw and the
reports of the US Naval Attache' in Warsaw.,
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APPENDIX C
SOURCE REFERENCES
Evaluations, following the classification entry and designated
"Eval.," have the following significance:
Source of Information
Information
Doc. - Documentary
1 -
Confirmed by other sources
A - Completely reliable
2 -
Probably true
B - Usually reliable
3 -
Possibly true
C - Fairly reliable
-
Doubtful
D - Not usually reliable
5 - Probably false
E - Not reliable
F - Cannot be Judged
6 - Cannot be judged
"Documentary" refers to original documents of foreign governments
and organizations; copies or translations of such documents by a
staff officer; or information extracted from such documents by a
staff officer) all of which may carry the field evaluation "Docu-
mentary."
Evaluations not otherwise designated are those appearing on
the cited document; those designated "RR" are by the author of this
report. No "RR" evaluation is given when the author agrees with the
evaluation on the cited document.
1. Navy, Warsaw., 81-57, 21- Jan 57. C. Eval. RR 2. (tr from
Zycie WarszE, 23 Jan 57. U)
2. Trybuna ludu,, 26 Sep 56. U. Eval. RR 2.
3. Przeglad mechaniczny, Mar 57. U. Eval. RR 3.
1. Navy, COMNAVGER. APO-403, serial no 43-5-57, 8 Feb 57-
S. Eval. RR 3. (tr from Nordsee Zeitung, 2 Feb 57. U)
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5. Navy, Warsaw. 138-57, 8 May 57. C. Eval. RR 2. (tr from
Trybuna ludo, 16 Feb 57. U)
6. Navy, COMNAVGER. APO-403, serial no 43-5-57 (3, above).
7. Trybuna ludu, 30 Mar 57. U. Eval. RR 2.
Die Welt, 1 Apr 57. U. Eval. RR 3.
Navy, COMNAVGER. APO-403, serial no 644-57, 24 Apr 57. U.
25X1A8a
9. Navy, Warsaw. 15-57, 14 Jan 57. C. Eval. RR 2. (tr from
Trybuna ludu, 28 Nov 56. U)
10. State, Ceylon. Dsp 670, 24 Feb 56. U. Eval. RR 2.
11. State, Djakarta. Dsp 59, 30 Jul 56. OFF USE. Eval. RR 2.
12. State, Santiago. Dsp 459, 23 Dec 55. OFF USE. Eval. RR 2.
13. State, Ceylon. Dsp 670, 24 Feb 56. U. Eval. RR 2.
14. Navy, Djakarta. 88-56, 2 May 56. C. Eval. Rl3 2.
15.
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