Marine Log - October 2008 - (Page 38)

CHINA’S GREAT AMBITIONS ONE DAY: TWO MILESTONES: Apr. 3, 2008 saw deliveries, from separate yards, of China’s largest containership and first LNG carrier, both built to ABS Class building Industry Co Ltd (DSIC),part of the giant state-controlled China Shipbuilding Industry Corporation, to boost its production from this year’s 3 million dwt to 10 million dwt by 2020. “We are now in the best period for the shipyard in terms of its development and economic efficiency,” said, Sun Bo, general manager of DSIC. DSIC was China’s first shipyard to build a 300,000-dwt Very Large Crude Carrier (VLCC)—delivered to the National Iranian Tanker Co in August 2002. The Chinese shipbuilder has since booked orders for more than 35 VLCC’s for clients. FINDING THE FUNDING DSIC’s parent CSIC recently gained approval from the National Development and Reform Commission (NDRC), China’s top economic planner, to issue CNY 3.5 billion (about $ 512.5 million) in corporate bonds starting September 3. CITIC Securities Co., Ltd. and CITIC Jiantou Securities Co., Ltd. are the colead underwriters and co-sponsors. China Aerospace Science and Technology Corp. provides irrevocable joint liability guaranty for the bonds. The proceeds will be mainly used for three projects, including the Qingdao Haixi Bay Shipbuilding Base, expansion of medium speed marine diesel engine activities at Shaanxi Diesel Engine Heavy Industry Co., Ltd. and the expansion low-speed marine diesel engine activities at Yichang Marine Diesel Engine Plant. WHERE’S THE CAPITAL GOING TO COME FROM? This raises the question of where the capital will come from to fund the industry’s growth. Thus far, the major private ventures don’t seem to have been having too many problems in getting the needed funding. The question is how much will be available from international sources given the current volatile financial market conditions. Rongsheng, last year bought a $250million minority stake, plans a listing by year-end or early next year, in either Singapore, Hong Kong, or on the Chinese mainland, Chairman Chen Qiang told Shanghai Daily. “For the IPO, fundraising is not the key 38 MARINE LOG OCTOBER 2008 www.marinelog.com http://www.donjon.com http://www.donjon.com http://www.marinelog.com

Table of Contents Feed for the Digital Edition of Marine Log - October 2008

Marine Log - October 2008 Contents Editorial Second Thoughts Update Inside Washington Fresh Fuel Ferries Exhibitors Preview Ferries get "Smarter" China's Great Ambitions Newsmakers Tech News Contracts Events Website Directory ML Buyer's Guide ML Marketplace Shipbuilding History

Marine Log - October 2008

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