Here are the 2 biggest threats to Sembcorp Marine's new Tuas Yard

It'll start operating around July 2013.

According to Barclays, the new Tuas yard remains on schedule to commence operations in July 2013, with the four new dry docks adding c1.6mn DWT of capacity, more than doubling the current capacity at Jurong Shipyard. 

With additional fabrication capacity of c144,000mn metric tonnes annually and c80% crane coverage from the improved crane capabilities, Sembcorp Marine expects to improve efficiency and lower costs.

Here's more from Barclays:

Concerns over lower-margin projects remain: Despite the improved outlook from the expected cost savings and increased volume of higher-margin repair work arising from more dock space, we believe concerns about the company's margin outlook remain.

The likely increase in revenue recognition from the seven drillships and other deepwater units remaining in the order book could still potentially weigh down margins.

However, here are the risks: 1) the increasing competitive landscape, particularly the Chinese yards, which continue to offer aggressive discounts on rigs or attractive financing terms; and 2) execution risks, as highlighted by the accident in December.