During a recent visit to China, editors of some leading shipping publications got a closer look at China's dynamic shipbuilding market. Here are some of their remarks.
Sam Chambers
Editor, Maritime Asia
Significant developments pointing to China's growth include: the successful series construction of the country's first VLCCs, more export orders of higher value ships, plans announced for the largest shipyard in the world and a growing realization around the world that Chinese yards build very decent ships at competitive prices. One area that the Chinese could lean a lot from the Japanese is making their 25 plus year old yards more efficient, while the new ones (such as Shanghai Waigaiqiao Shipyard) don't have to worry about such constraints.
Hugh O'Mahony
Technical Editor, Lloyd's List
China's two main shipyard groups, the southerly China State Shipbuilding Corp (CSSC) group and the north's China Shipbuilding Industry Corp (CSIC) have adopted different growth strategies. CSSC ambitious plans include expanding its current 4m dwt capacity to over 14m dwt by 2015, creating the world's biggest single yard, and becoming the world's number one shipbuilder by 2015. The CSIC's principle path to expansion will be based on restructuring of production processes. Four or five ship assembly plants would be built in Dalian, Bohai, Shanghai, Tianjin and Quangdo City, and yard work will be more of a block assembly operation.
Paul Gunton
Editor, Fairplay
Every shipowner I have met who has ordered ships in Chinese yards brings up the question of quality. Andy Westwood, DNV vice president and maritime regional manager for the Greater China area, says that concerns over quality should be more specific. "There's a train coming through here," he says. "Do you stand on the platform, get on as a passenger or get in and help drive?" Chinese yard managers readily accept that their productivity and yard management skills still lag behind those of South Korea and Japan, but are applying market economy principles as they build and staff new facilities.
Bob Jaques
Editor, Seatrade
One Chinese yard boss has likened shipbuilding in Japan and Korea to "people of 35 to 40, who are very strong and at their prime, while my industry is 16 - 17." With their coming of age in sight, many larger Chinese yards are proving less malleable to owners' wishes than before, now stipulating which types of ship they will build and seeking better prices. Some foreign owners wanting smaller, one-off vessels have even complained of being unceremoniously 'bumped' from building slots on the eve of signing. But Chinese yards feel they are merely adopting 'adult' market practices.
Patrik Wheater
Editor, Marine Engineers Review
Talk to the President of any shipyard in China from Dalian to Guangzhou and you will hear how China's shipbuilding capacity is expected to be comparable to that of Japan and Korea by 2015. CSSC has accelerated its shipyard development phase, which began in 1999 with the construction of the modern (by Chinese standards) SWS yard, and will follow in 2007 with the relocation of Shanghai's Jiangnan, and other CSSC-operated shipyards, to Changxing island. CSIC, meanwhile, has big plans for its yards. The Mayor of the Dalian Municipal People's Government, Xia Deren, declared that the "state government has made it clear it will build Dalian into a very important shipbuilding, manufacturing, petro-chemical, electronic and information technology base". But that expansion must go hand-in-hand with improvements in quality assurance, management systems, automation, and design software packages to help meet China's vast potential.