FT.com: How China Rules The Waves (Shipbuilding Tech, Port Tech, Shipping & Maritime Network)

[Shotgunner51]

http://worldmaritimenews.com/archives/208843/china-cosco-shipping-pools-shipbuilding-assets/
China Cosco Shipping Pools Shipbuilding Assets
Posted on December 16, 2016

China Cosco Shipping Group has integrated all of its shipbuilding assets into one unit – Cosco Shipping Heavy Industry (CSHI).

The state-owned China Cosco Shipping is a merged entity of China Ocean Shipping (Group) Company (Cosco) and China Shipping (Group) Company (China Shipping).

• Cosco owns six shipyards and operates two joint-venture yards with Japanese Kawasaki Heavy Industries, while
• its compatriot China Shipping owns five yards.
• Following the establishment of CSHI, all thirteen shipyards will now be managed by the new unit. With this move, CSHI has become China’s third biggest shipbuilding group.

Wang Yuhang, the deputy general manager of Cosco Shipping, has been appointed as chairman of CSHI.

CSHI is established to improve Cosco Shipping’s position in the shipbuilding industry and will rely on China-made “2025 Strategy” to enhance its overall profitability, Wang said.

The move follows the earlier cooperation between Cosco and China Shipping when they combined their fleets and port operations to form China Cosco Holdings. Created last year, the company is said to be the world’s fourth biggest container operator in terms of capacity.


https://www.statista.com/statistics/263895/shipbuilding-nations-worldwide-by-cgt/
Largest shipbuilding nations in 2015, based on completions in gross tonnage (in 1,000s)

https://www.statista.com/statistics/257865/leading-shipbuilding-companies-worldwide-based-on-volume/
Leading shipbuilding companies worldwide as of March 2016, by orderbook value (in billion U.S. dollars)

 

[ahojunk]

Shenzhen Port's annual container throughput ranks 3rd largest
2017-01-10 16:16XinhuaEditor:Xu Shanshan

File photo taken on Dec. 29, 2016 shows Shekou Port of Shenzhen Port in Shenzhen, south China's Guangdong Province. According to local transport commission, the annual container throughput of Shenzhen Port has reached 23.97 million TEU (20-foot equivalent units) in 2016 and ranked the third largest in the world for the fourth consecutive year. (Xinhua/Mao Siqian)

File photo taken on Dec. 29, 2016 shows Shekou Port of Shenzhen Port in Shenzhen, south China's Guangdong Province. According to local transport commission, the annual container throughput of Shenzhen Port has reached 23.97 million TEU (20-foot equivalent units) in 2016 and ranked the third largest in the world for the fourth consecutive year. (Xinhua/Mao Siqian)

File photo taken on June 2, 2016 shows Yantian Port of Shenzhen Port in Shenzhen, south China's Guangdong Province. According to local transport commission, the annual container throughput of Shenzhen Port has reached 23.97 million TEU (20-foot equivalent units) in 2016 and ranked the third largest in the world for the fourth consecutive year. (Xinhua/Mao Siqian)

File photo taken on June 2, 2016 shows Yantian Port of Shenzhen Port in Shenzhen, south China's Guangdong Province. According to local transport commission, the annual container throughput of Shenzhen Port has reached 23.97 million TEU (20-foot equivalent units) in 2016 and ranked the third largest in the world for the fourth consecutive year. (Xinhua/Mao Siqian)

File photo taken on June 2, 2016 shows Yantian Port of Shenzhen Port in Shenzhen, south China's Guangdong Province. According to local transport commission, the annual container throughput of Shenzhen Port has reached 23.97 million TEU (20-foot equivalent units) in 2016 and ranked the third largest in the world for the fourth consecutive year. (Xinhua/Mao Siqian)


********

Amazing, from a little fishing village to the world's 3rd largest container port in 30 years.
It's just mind boggling.

.

 

[ahojunk]

China's shipbuilding giant charts new course
2017-01-14 17:13 | chinadaily.com.cn | Editor: Gu Liping

Dalian Shipbuilding Industry Company (DSIC), one of the largest shipbuilding companies in the country, is charting a new course to overcome decline in global demand.

Based in Dalian in Northeast China's Liaoning province, the State-owned company is shifting its focus away from conventional shipbuilding to high-end vessels such as very-large crude and ore carriers and bulk carriers.

The shipping giant, which has 12,000 employees, recorded revenue of 23.4 billion yuan ($ 3.4 billion) in 2016 and net profit of 760 million.

DSIC's service spans the entire life cycle of a ship, including research and development, construction, repair and scraping. It's the only domestic equipment manufacturing enterprise that has expertise in all five industrial sectors: military project undertaking, shipbuilding, offshore equipment building, ship repair/ship scraping and heavy industrial project undertaking.

As the flagship of China's shipbuilding industry, DSIC has made great contribution to national defense and modernization of navy.

More than 800 naval ships of 44 types have been built in Dalian since the founding of the People's Republic of China, with DSIC building the greatest number of warships for the navy.

The company, which was formed in 2005 after a merger between Dalian Shipbuilding Industry Company and Dalian New Shipbuilding Industry Company, is part of China Shipbuilding Industry Corporation (CSIC), one of the two State-owned shipbuilding enterprises in the nation.

Currently, CSIC manufactures products not only for the maritime industry, but also designs and produces advanced large turnkey equipment and high-tech products for sectors ranging from energy to transportation to logistics.

It has established an industrial fund with an initial capital of 10 billion yuan to further invest in fields such as offshore engineering products, power, electronic information and intelligent equipment, and underwater defense, said an earlier report in China Daily.

.

 

[onebyone]

FT: China Has Become the New Shipping 'Super Power'

(AP)

By F McGuire | Friday, 13 Jan 2017 01:00 PM


China reportedly has spent billions expanding its ports network to secure sea lanes and establish itself as a maritime super power.

Investments into a wide network of harbors across the globe have made Chinese port operators the world leaders, a Financial Times investigation has discovered.

The "emergence of China as a maritime superpower is set to challenge a U.S. command of the seas," the FT warned.

Strategic tensions between China and the U.S. are smoldering as President-elect Donald Trump prepares to take office and the world waits to see action on his campaign vows to crack down on China.

Pushed by President Xi Jinping to become a maritime superpower, China is indeed a formidable foe to the U.S. on the high seas. China's shipping companies carry more cargo than those of any other nation, as the FT said five of the top 10 container ports in the world are in mainland China with another in Hong Kong. China's coast guard has the globe’s largest maritime law enforcement fleet and its navy is the world’s fastest growing among major powers, the FT said.

As its prime example, the FT cited Pakistan’s Arabian Sea port of Gwadar (owned, financed and built by China), which occupies a strategic location, which potentially political and military ramifications. Islamabad and Beijing "for years denied any military plans for the harbor, insisting it was a purely commercial project to boost trade," the FT reported.


Data compiled or commissioned by the Financial Times from third-party sources show the extent of China’s maritime dominance:

• Beijing’s shipping lines deliver more containers than those from any other country, according to data from Drewry, the shipping consultancy.
• The five big Chinese carriers together controlled 18 per cent of all container shipping handled by the world’s top 20 companies in 2015, higher than the next country, Denmark.
• Nearly two-thirds of the world’s top 50 container ports had some degree of Chinese investment by 2015, up from about one-fifth in 2010, according to FT research. The total size of these investments is difficult to calculate because of sketchy disclosure.

To be sure, Chinese-Americans tensions have been on a slow boil this week.

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Blocking Chinese access to islands in the South China Sea would require the U.S. to "wage war," an influential Chinese state-run tabloid said on Friday, after U.S. Secretary of State nominee Rex Tillerson suggested the strategy on Wednesday.

Tillerson told his confirmation hearing before the U.S. Senate Foreign Relations Committee that he wanted to send a signal to China that their access to islands in the disputed South China Sea "is not going to be allowed." He did not elaborate.

The United States would have to "wage a large-scale war" in the South China sea to prevent Chinese access to the islands, the Global Times said in an English language editorial, Reuters reported.

The paper, which is known for writing strongly-worded, hawkish and nationalist editorials, is published by the ruling Communist Party's flagship paper. It does not reflect Chinese policy.

(Newsmax wire services contributed to this report).

http://www.newsmax.com/Newsfront/china-shipping-super-power-financial-times/2017/01/13/id/768438/

 

[Shotgunner51]

The company, which was formed in 2005 after a merger between Dalian Shipbuilding Industry Company and Dalian New Shipbuilding Industry Company, is part of China Shipbuilding Industry Corporation (CSIC), one of the two State-owned shipbuilding enterprises in the nation.

Yes M&A are happening to consolidate assets for better R&D efficiency and improve economy of scale, driven by two SOE groups:

1. China Shipbuilding Industry Corporation (CSIC), deals with north and west
   
2. China State Shipbuilding Corporation (CSSC), deals with south and east

Both are gigantic firms, making China the largest shipbuilding nation in the world, gross tonnage overtaking South Korea in 2015. But note that South Korea firms own tremendous overseas shipbuilding assets, largest of which is Hanjin Heavy Industries Corp in Philippines (HHIC-Phil).

CSSC ranks world's 3rd largest shipbuilding company.

 

[Shotgunner51]

As the flagship of China's shipbuilding industry, DSIC has made great contribution to national defense and modernization of navy. More than 800 naval ships of 44 types have been built in Dalian since the founding of the People's Republic of China, with DSIC building the greatest number of warships for the navy.

It has established an industrial fund with an initial capital of 10 billion yuan to further invest in fields such as offshore engineering products, power, electronic information and intelligent equipment, and underwater defense

Excellent! That's a good alternative to in-house R&D: Setup a 10 billion yuan industry-specific fund to incubate more innovations in SME (independent labs), then do M&A when time is right to consolidate. Look forward to more technological breakthroughs!

 

[Dalit]

We are very glad and humble to be part of Chinese ambitions to become a global maritime super power. Pakistan is going to facilitate China in their goal. China is going to facilitate Pakistan in energy and trade. For Pakistan and China this maritime
ambition is based on a mutual win win. Pakistan could not have wished for anything better.

 

[GS Zhou]

2016 is actually a bad year for the Chinese shipbuilding industry. Given the global trade slow down, the new contracts volume gained by the Chinese shipbuilders declines by half!

However, good news is, the situation in S. Korea and Japan is far worse. New contracts gained by Korea declines by 80%, and Japan declines by 90%! So lets wait and see who can be the last survivor!

 

[PurpleButcher]

Why are far easterns miles ahead in shipping industry than rest of the world? China, Japan and S.Korea ... well done

 

[GS Zhou]

Why are far easterns miles ahead in shipping industry than rest of the world?

China, Japan and S. Korea are all top exporters of the world, which means they all needs big number of ships for their global trade activities. Therefore domestic demand alone could attract sufficient investment (public or private) to the shipbuilding sector, hence a highly-capable domestic supply chain (from steel sheets to the final vessels assembly) established.

 

[shadows888]

Why are far easterns miles ahead in shipping industry than rest of the world? China, Japan and S.Korea ... well done

State support, even the ones in korea and japan have qusi-direct state support i.e. Chaebol's in Korea, Keiretsu's in Japan, and SOE's in China. Very effective combination of the holy trinity between government, enterprise, and academia.

 

[Shotgunner51]

Why are far easterns miles ahead in shipping industry than rest of the world? China, Japan and S.Korea ... well done

Thanks. Shipbuilding is part of the phenomenon that heavy industries are highly concentrated in NE Asia, say steel, chemical, metallurgy, large electro-mechanical equipment, large machine tools (CNC, forge press, etc), forming a mutually-integrated massive complex of supply chain, an "eco-system".

https://defence.pk/threads/china-co...l-than-the-rest-of-the-world-combined.457241/
https://defence.pk/threads/gardner-...-survey-data-ranking-by-country.468126/page-4​

Why in this region?

1. These are very capital intensive sectors, highly reliant on supply chain in close proximity, hence giant conglomerates enjoy advantage, as @shadows888 mentioned, Chaebol in SK, Keiretsu in Japan, SOE in China.
2. On the social front, they are also very demanding on public utilities, infrastructure, land and large supply of vocational technicians, hence long term state policies are critical. Some may also say, Chaebols decide SK policy, same with Keiretsu in Japan.

Heavy industries fit well with socio-economic norms of NE Asia.

 

[AndrewJin]

State support, even the ones in korea and japan have qusi-direct state support i.e. Chaebol's in Korea, Keiretsu's in Japan, and SOE's in China. Very effective combination of the holy trinity between government, enterprise, and academia.

Very succinct and accurate summary!

 

[Shotgunner51]

I saw an IHS Jane's article, in general outbound M&A is good but wonder where can Chinese shipbuilders find assets large enough and worth the effort to acquire?

China urges shipbuilders to secure foreign acquisitions
Jon Grevatt, Bangkok - IHS Jane's Defence Weekly
16 January 2017

The Chinese government is urging its national shipbuilders - dominated by stat-owned corporations and their subsidiaries - to acquire foreign companies with a view to boosting capabilities and revenues.

A statement by the Ministry of Industry and Information Technology (MIIT) on 13 January said foreign acquisitions were one part of a "plan of action to accelerate the transformation and upgrading" of China's naval/commercial shipbuilders by the end of the decade. The national shipbuilding plan was written by a number of Chinese government agencies including the MIIT's State Administration for Science, Technology and Industry for National Defense (SASTIND), the Ministry of Finance, and the China Banking Regulatory Commission.

http://www.janes.com/article/66967/china-urges-shipbuilders-to-secure-foreign-acquisitions​

 

[GS Zhou]

I saw an IHS Jane's article, in general outbound M&A is good but wonder where can Chinese shipbuilders find assets large enough and worth the effort to acquire?

China urges shipbuilders to secure foreign acquisitions
Jon Grevatt, Bangkok - IHS Jane's Defence Weekly
16 January 2017

The Chinese government is urging its national shipbuilders - dominated by stat-owned corporations and their subsidiaries - to acquire foreign companies with a view to boosting capabilities and revenues.

A statement by the Ministry of Industry and Information Technology (MIIT) on 13 January said foreign acquisitions were one part of a "plan of action to accelerate the transformation and upgrading" of China's naval/commercial shipbuilders by the end of the decade. The national shipbuilding plan was written by a number of Chinese government agencies including the MIIT's State Administration for Science, Technology and Industry for National Defense (SASTIND), the Ministry of Finance, and the China Banking Regulatory Commission.

http://www.janes.com/article/66967/china-urges-shipbuilders-to-secure-foreign-acquisitions​

mainly components suppliers or top design companies.

For example,CSSC acqiured Wartsila, the top low speed diesel engine supplier in 2015.

there are also some chemical tankers design specialists in western europe. they could be nice targets too.