The Irish ship finance sector could exceed €10 billion by 2010, according to the Irish Maritime Development Office (IMDO).

The portfolio value of marine assets financed by Irish-based firms is now close to $2.5 billion (€1.7 billion), placing Ireland among the top 15 international centres for ship finance and maritime commerce, the IMDO said.

The organisation is hoping to drum up interest among Irish investors in the marine finance market, which is undergoing a dramatic global expansion, and is holding an investment forum in Dublin today.

IMDO director Glenn Murphy said global orders for new ships worth $156 billion were financed last year, with a further $80 billion used to fund the purchase of second-hand vessels. Four years ago, the market was worth $36 billion a year.

European ship owners are driving the purchasing spree, accounting for almost 40 per cent of all new vessels purchased last year, the IMDO said.

Mr Murphy said the Republic already had an established record in asset-backed finance, with Dublin recognised as a leading centre for aviation lease financing. Because of the similarity of the structures of the deals, the marine finance sector could emulate the level of activity in the aviation sector in 10-15 years' time, he said.

Bank of Ireland is currently the largest shipping bank in the market, with a portfolio of more than $1.5 billion, Mr Murphy said. He added that AIB, IIB, Ulster Bank and the Irish bases of Belgo-Dutch bank Fortis and French bank BNP were also active players.