Method for Estimating Cost of New Ship Building with Linear Regression

Abstract

The request of a fleet of marine transportation can be fulfilled by constructing new vessels and purchasing secondhand vessels. The current constraints in building new vessels are cost relatively expensive and take a long time, while the advantages for the procurement of vessels of secondhand time relatif faster and the price is cheaper. New shipbuilding includes complex work with the multy year’s payment system, so it is important to develop the cost budget needed to build a new ship. The price should be adjusted concerning material needs and services with the standard market price during the completion time of the work and expected the calculation of the construction of a ship can be updated periodically. The research aims to identify, analyse and construct the cost estimation of the construction of the ferry types: 300 GT, 500 GT, 600 GT, 750 GT and its components. The stages that will be carried out in this study are to identify primary and secondary data relating to the construction costs of ferries and their components with field surveys, market surveys, and relevant library studies. Data is processed by linear regression methods to construct an estimate of the cost of building ferries and their components. Results obtained in the form of graphs and equivalencies of the cost of building ferries and material cost components, labour costs, and shipyard and third party costs.