Marine Log - September 2007 - (Page 43)

BY NICK BLENKEY SHIPBUILDING AIMS FORTHE China’s Yangzijiang Shipbuilding launched an IPO on the Singapore Stock Exchange this year. It is one of many independent Chinese yards focused on expansion CHINA TOP ORDERS, ’000 CGT Development Policy for China’s Shipbuilding Industry, approved by the State Council of the People’s Republic of China in 2006, is to become the world's biggest shipbuilding nation. Right now, it is number three after Korea and Japan. Specific targets are to reach an output of 17 million dwt and a capacity of 23 million dwt by 2010 and an output of 22 million dwt and capacity of 28 million dwt by 2015. China’s output of medium and low speed marine diesel engines is targeted to reach 6 million kW (1,200 units). By 2010, more than 60% of ship’s equipment is to be produced domestically and 80% by 2015. These goals appear well within reach given that major European marine manufacturers continue to open up joint ventures in China. Trickier targets are those set for shipyard efficiency. By 2015, the expectations are that the efficiency of major shipyards will reach 15 man-hours per Compensated Gross Ton (CGT)—a measure that takes into account the differing complexities of various ship types. The average production time for vessels over 30,000 dwt is expected to be cut to nine months. Thus far, things seem to be going the way the State Council wants. Ship production in China climbed by 20% to 14.52 million deadweight tons last year from 2005, grabbing 19% of the world total. Vessels for export amounted to 11.71 million deadweight tons and the whole sector’s profits more than doubled to 9.6 billion yuan ($1.27 billion). Indeed, in the first four months of this year, Chinese shipyards briefly led the world in terms of new orders booked, takwww.marinelog.com C hina’s stated aim under the CHINESE SHIPYARD ORDER BOOK Shipyard Group Capacity Tankers B u l k e rs CSSC 1,775.8 3,243.3 2,954.6 CSIC 969.8 2,129.0 779.2 New Century Shipb. 296.7 1,492.2 96.0 Yangzijiang Shipb. 170.5 — 220.5 Jiangsu Rong Sheng — 909.4 185.5 Nantong Cosco 225.5 265.3 429.5 Jinling SY 174.5 285.6 66.3 3 Qingshan S.Y. 104.2 241.3 215.6 1 Zhejiang S.B. 55.1 2 3.4 1 27.1 Dayang S.B. 94.5 — 254.0 Kouan S.B. 103.4 — 98.1 Zhejiang Yangfan 132.7 — — Mawei S.B. 72.9 — 47.5 Jiangsu Eastern 33.3 — 268.1 Zhejiang Ouhua 13.1 — — 355.1 Taizhou Sanfu 17.8 80.3 66.3 Shandong Huanghai 27.7 — — Tsuji H.I. .— — 274.3 Jinglu Shipyard .— 15.0 220.5 Hantong Shipyard .— — 194.9 Others 1,480.3 417.7 Chinese Total. 10,165.1 6,915.9 Percentage of World Total 26.7% 34.3% C o n t a i n e rs h i p s 1,767.5 1,046.4 110.8 1,014.3 — 202.6 16.7 67.1 319.6 53.0 264.7 427.5 339.7 111.8 — 19.9 — — — — 393.7 6,910.5 23.1% GasCarriers Others Total % of Total 423.9 355.2 8,744.5 31.0% 23.5 392.5 4,370.6 15.5% — — 1,699.0 6.0% — 123.1 1,357.8 4.8% — — 1,095.0 3.9% — — 897.4 3.2% — 184.6 853.3 3.0% — 66.9 6 90.8 2.4% — 75.2 545.3 1.9% — 172.0 479.0 1.7% — 101.9 464.8 1.6% — — 427.5 1.5% — 34.3 421.6 1.5% — 36.9 416.8 1.5% — 355.1 1.3% — 130.1 2 96.7 1.1% — 278.8 278.8 1.0% — — 274.3 1.0% — — 235.5 0.8% — 25.4 2 20.2 0.8% 115.5 1,721.6 4,128.8 14.6% 563.0 3,698.4 28,252.9 100.0% 3.8% 18.8% 23.1% As of February 2007. Source:Yangzijiang Shipbuilding IPO prospectus/ Clarkson’s Research Studies ing in orders for 8.5 million CGT, compared to Korea’s 6.9 million CGT, according to Clarkson’s Research Studies. By mid year, though, Korea had regained its lead, booking orders for 15.3 million CGT, compared with China’s 13.8 million CGT. This back-and-forth battle for orders is exciting stuff, but can China really displace Korea and Japan in terms of tonnage delivered year after year? China is laying the groundwork by putting in place the production capacity that should enable it to do just that. The Chinese shipbuilding industry is divided into three types of yards: large state-owned and -controlled yards, joint venture yards involving overseas partners and a slew of local and provincial yards. The state-controlled yards are those under the umbrella of either CSSC (China State Shipbuilding Corporation) or CSIC (China Shipbuilding Industry Corporation). COSCO Shipyards is now part of this group after adding newbuildSEPTEMBER 2007 MARINE LOG 43 http://www.marinelog.com

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Marine Log - September 2007 Contents Update Inside Washington High Speed Design Heads into New Waters The National Maritime Salvage Conference & Expo Guide China Aims for the Top Azipods: Just Add Ice Rigdon Scores Newsmakers Tech News Contracts Events Website Directory InfoDirect Ml Marketplace Last Word

Marine Log - September 2007

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