Shotgunner51
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Excellent value, on par with a DDG!
Hudong-Zhonghua is doing fine, now perhaps the most competitive challenger to DSME and Hyundai Heavy Ind.
FT.com: How China Rules The Waves (Shipbuilding Tech, Port Tech, Shipping & Maritime Network)
- Thread starter Hypersonicmissiles
- Start date
GS Zhou
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That's the price of four ships in total.
For such a ship, the pricing from the Korea side is usually ~$200 million per unit, but Hudong Zhonghua offers the pricing at ~$190 million per unit.
The shipbuilding industry in China, Korea and Japan is nowadays facing with very tough situation, new orders are declining continually. So instead of making profits, what's more important is to secure as much new orders as possible, even to sacrifice some profits.
Shotgunner51
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Good clarification, thanks!
I think you got snagged by that line "each are priced at $749.5m".
A bit confusing if you just glanced through.
.
JSCh
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Sun Jul 9, 2017 | 11:21pm EDT
China's COSCO Shipping offers $6.3 billion for Orient Overseas Ltd
By Brenda Goh and Matthew Miller | SHANGHAI/BEIJING
COSCO Shipping Holdings Co Ltd (601919.SS) has offered to buy Orient Overseas International Ltd (OOIL) (0316.HK) for HK$49.23 billion ($6.30 billion), in a deal that will see the mainland China group become the world's third largest container liner.
The proposed deal is the latest in wave of mergers and acquisitions in global container shipping that has left the top six shipping lines controlling 63 percent of the market. OOIL's shipping subsidiary, OOCL, has a 2.7 percent slice of the market.
COSCO Shipping is offering HK$78.67 for each OOIL share, a premium of 37.8 percent over OOIL's closing price of HK$57.10 on its last trading date, the companies said in filings with the Hong Kong and Shanghai stock exchanges on Sunday.
OOIL's controlling shareholders had on Friday agreed to sell their 68.7 percent stake at that price to COSCO Shipping, which is making the offer with Shanghai Port International Group (SIPG) (600018.SS) that will take 9.9 percent, they said.
COSCO Shipping will have a fleet of more than 400 vessels and capacity exceeding 2.9 million TEUs (twenty-foot equivalent units) should the deal go through, it said.
This would make it the world's third largest container shipping line after Denmark's Maersk Line MAERSKb.Co and Switzerland's Mediterranean Shipping Company (MSC), according to Singapore-based transport research firm Crucial Perspective. It is currently the fourth-largest behind France's CMA CGM [CMACG.UL].
"COSCO Shipping Holdings believes this acquisition will enable both COSCO Shipping Lines and OOIL to realize synergies, enhance profitability and achieve sustainable growth in the long term," the Chinese group said in the statement.
OOCL was founded in 1969 by Hong Kong shipping magnate Tung Chao-yung, whose son, Tung Chee-chen is chairman, president and chief executive of the company, while several Tung children are in senior management roles.
The two companies in January dismissed merger rumors but analysts said that OOCL was still a likely bid target due to its long profitable history and relatively low leverage.
Both firms are also part of the "Ocean Alliance" partnership, which also includes CMA CGM and Evergreen Marine Corp (2603.TW), that was formed last year to take on the rival grouping of Maersk Line and MSC.
COSCO Shipping itself was created from the state-driven merger of former rivals China Ocean Shipping (Group) Company and China Shipping Group. Shares in the firm, which flagged a return to first-half profit last week, have been suspended since May 16.
It said it would finance its part of the deal through external debt financing and that the transaction was still subject to anti-trust reviews by Chinese and U.S. government authorities.
The companies said that they plan to retain OOIL's listing status and maintain its global headquarters and presence in Hong Kong to support the city as a global maritime center.
Should the deal fall through, COSCO Shipping has also agreed to pay OOIL a reverse termination fee of $253 million, they said
UBS AG Hong Kong Branch (UBSG.S) is advising COSCO Shipping and SIPG, while J.P. Morgan Securities (Asia Pacific) Limited (JPM.N) is advising OOIL.
(Reporting By Brenda Goh in SHANGHAI and Matthew Miller in BEIJING; editing by John Stonestreet and Jane Merriman)
China's COSCO Shipping offers $6.3 billion for Orient Overseas Ltd | Reuters
China's COSCO Shipping offers $6.3 billion for Orient Overseas Ltd
By Brenda Goh and Matthew Miller | SHANGHAI/BEIJING
COSCO Shipping Holdings Co Ltd (601919.SS) has offered to buy Orient Overseas International Ltd (OOIL) (0316.HK) for HK$49.23 billion ($6.30 billion), in a deal that will see the mainland China group become the world's third largest container liner.
The proposed deal is the latest in wave of mergers and acquisitions in global container shipping that has left the top six shipping lines controlling 63 percent of the market. OOIL's shipping subsidiary, OOCL, has a 2.7 percent slice of the market.
COSCO Shipping is offering HK$78.67 for each OOIL share, a premium of 37.8 percent over OOIL's closing price of HK$57.10 on its last trading date, the companies said in filings with the Hong Kong and Shanghai stock exchanges on Sunday.
OOIL's controlling shareholders had on Friday agreed to sell their 68.7 percent stake at that price to COSCO Shipping, which is making the offer with Shanghai Port International Group (SIPG) (600018.SS) that will take 9.9 percent, they said.
COSCO Shipping will have a fleet of more than 400 vessels and capacity exceeding 2.9 million TEUs (twenty-foot equivalent units) should the deal go through, it said.
This would make it the world's third largest container shipping line after Denmark's Maersk Line MAERSKb.Co and Switzerland's Mediterranean Shipping Company (MSC), according to Singapore-based transport research firm Crucial Perspective. It is currently the fourth-largest behind France's CMA CGM [CMACG.UL].
"COSCO Shipping Holdings believes this acquisition will enable both COSCO Shipping Lines and OOIL to realize synergies, enhance profitability and achieve sustainable growth in the long term," the Chinese group said in the statement.
OOCL was founded in 1969 by Hong Kong shipping magnate Tung Chao-yung, whose son, Tung Chee-chen is chairman, president and chief executive of the company, while several Tung children are in senior management roles.
The two companies in January dismissed merger rumors but analysts said that OOCL was still a likely bid target due to its long profitable history and relatively low leverage.
Both firms are also part of the "Ocean Alliance" partnership, which also includes CMA CGM and Evergreen Marine Corp (2603.TW), that was formed last year to take on the rival grouping of Maersk Line and MSC.
COSCO Shipping itself was created from the state-driven merger of former rivals China Ocean Shipping (Group) Company and China Shipping Group. Shares in the firm, which flagged a return to first-half profit last week, have been suspended since May 16.
It said it would finance its part of the deal through external debt financing and that the transaction was still subject to anti-trust reviews by Chinese and U.S. government authorities.
The companies said that they plan to retain OOIL's listing status and maintain its global headquarters and presence in Hong Kong to support the city as a global maritime center.
Should the deal fall through, COSCO Shipping has also agreed to pay OOIL a reverse termination fee of $253 million, they said
UBS AG Hong Kong Branch (UBSG.S) is advising COSCO Shipping and SIPG, while J.P. Morgan Securities (Asia Pacific) Limited (JPM.N) is advising OOIL.
(Reporting By Brenda Goh in SHANGHAI and Matthew Miller in BEIJING; editing by John Stonestreet and Jane Merriman)
China's COSCO Shipping offers $6.3 billion for Orient Overseas Ltd | Reuters
Bussard Ramjet
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When a state owned behemoth, that is regularly in loss, pays a 49% premium on the price of a shipping line, I am extremely worried if the company is run by actual professional staff, or CPC Political commissars.
JSCh
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Do some homework first, I have better thing to do then refuting troll you know.
Thu Jul 6, 2017 | 6:52am EDT
China's COSCO Shipping flags first-half profit on improving market
China's COSCO Shipping Holdings (601919.SS) (1919.HK) expects to post a profit of around 1.85 billion yuan ($272 million) in the first half, helped by an improving shipping market.
The world's fourth-largest container shipping line made the forecast in a stock market statement on Thursday. It recorded a loss of 7.2 billion yuan in the same period last year.
"Freight rates for container shipping operations have increased year-on-year, container volumes have grown 34.72 percent, and earnings have continued to grow from the base set in the fourth quarter of last year," it said.
Several of the company's peers have said in recent months that the global shipping industry is emerging from a prolonged slump. In May, French container shipping line CMA CGM posted its second straight quarterly profit.
COSCO Shipping has suspended trading in its shares since May 16, citing "material asset restructuring."
(Reporting by Brenda Goh; Editing by Mark Potter)
China's COSCO Shipping flags first-half profit on improving market | Reuters
Bussard Ramjet
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Do some homework first, I have better thing to do then refuting troll you know.
Thu Jul 6, 2017 | 6:52am EDT
China's COSCO Shipping flags first-half profit on improving market
A COSCO container is seen at the Noatum container terminal near Bilboa, in Santurtzi, Spain June 14, 2017. REUTERS/Vincent West
China's COSCO Shipping Holdings (601919.SS) (1919.HK) expects to post a profit of around 1.85 billion yuan ($272 million) in the first half, helped by an improving shipping market.
The world's fourth-largest container shipping line made the forecast in a stock market statement on Thursday. It recorded a loss of 7.2 billion yuan in the same period last year.
"Freight rates for container shipping operations have increased year-on-year, container volumes have grown 34.72 percent, and earnings have continued to grow from the base set in the fourth quarter of last year," it said.
Several of the company's peers have said in recent months that the global shipping industry is emerging from a prolonged slump. In May, French container shipping line CMA CGM posted its second straight quarterly profit.
COSCO Shipping has suspended trading in its shares since May 16, citing "material asset restructuring."
(Reporting by Brenda Goh; Editing by Mark Potter)
China's COSCO Shipping flags first-half profit on improving market | Reuters
Com'on man.
Even this report mentions that there was a 7 billion yuan last year.
And this year's first half results aren't even out. These are just estimates.
So I was totally correct in saying that the company is loss making since the last reported results were losses.
JSCh
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Monday, July 17, 2017, 12:09
Building new marine economy
By Zhong Nan
Two workers direct an LNG cargo to shore at Nantong Wharf in Jiangsu province. (Xu Congjun/China Daily)
After delivering frigates to naval forces of Algeria and Pakistan, and mega-container ships, liquefied natural gas or LNG carriers and vehicle carriers to shipowners in the United States, Norway, Denmark, Germany and Singapore, Chinese shipyards have recently made inroads into the high-end ship segment, to compete with their South Korean competitors.
What's facilitating that trend is the "marine economy", whose meaning has widened in recent times to include industries like shipping, fishing, aquaculture, oil and gas.
Marine economy now includes sectors such as marine chemistry, biomedicine, ocean power, seawater use, marine tourism, ocean engineering and construction. A large variety of vessels serve these industries and sectors. Conventional vessels like bulk ships and ore carriers are no longer the kings of the marine economy transport system.
The new-age marine economy has created new opportunities for shipyards. More so for Chinese shipyards because of the Belt and Road Initiative.
Many economies participating in the initiative are seeking to develop trade, regional connectivity, offshore energy, tourism and other service businesses via the 21st Century Maritime Silk Road. Additional demand for ships is coming from China's increasing resource deployment into high-end manufacturing as part of the Made in China 2025 strategy.
Lin Zhongqin, president of Shanghai Jiaotong University, said capable Chinese shipyards have already upgraded their products, having sold cheap bulk carriers and tugboats for more than a decade. They now make complex, high value-added vessels to reach buyers in new segments through international collaboration, research and development activities.
Shanghai-based Hudong-Zhonghua Shipbuilding (Group) Co, a subsidiary of China State Shipbuilding Corp, bagged an order for four LNG carriers with tank capacity of 174,000 cubic meters each from Japan's Mitsui O.S.K. Lines or MOL last month. The total value of this deal is 5.2 billion yuan ($735 million).
These LNG carriers will be equipped with the latest dual-fuel system technology developed by the Chinese shipyard. The technology helps lower a ship's fuel consumption by up to 16 percent.
The vessel will be used in Russia's Yamal LNG project from 2019 or 2020 onward, through a wholly-owned subsidiary of MOL. The four contracted carriers will transport European LNG to and from the project.
Hudong-Zhonghua also delivered container-carriers, vehicle-carriers and chemical tankers to clients in Sweden and the Netherlands earlier this year.
Chen Jianliang, chairman of Hudong-Zhonghua, said China, as well as both developed and developing countries, are all eager to purchase natural gas from abroad to adopt greener energy. LNG carriers can meet the demand to secure their energy supply from overseas markets.
The American Bureau of Shipping, a Houston-based classification society, predicted that around 100 LNG carriers will be bought by different shipowners across the globe between 2017 and 2020.
"China is shifting from producing inefficient and dated vessels that are clogging up Chinese shipyards to investing heavily in the rapidly growing market of LNG and liquefied petroleum gas or LPG carriers, as well as marine fishing ships, law enforcement vessels, large icebreakers and chemical tankers," said Chen.
To date, Hudong-Zhonghua has built 13 LNG carriers on orders placed by both domestic and foreign companies, including CNOOC Energy Technology and Services, China LNG Shipping Ltd, Teekay LNG Partners and British Gas Services Ltd.
Even though many Chinese shipyards went bankrupt and remerged last year, the operational revenue of Hudong-Zhonghua was 18.35 billion yuan, up a bit from 2015.
The new course adopted by shipyards in Jiangsu, Zhejiang, and Shanghai is largely the result of many global shipping companies reporting losses since 2008 because of overcapacity, declining global trading volume, falling ship prices, surging costs in labor, energy, steel, ship parts and maintenance.
Eager to enhance its earning ability, Nantong COSCO KHI Ship Engineering Co, a 50:50 shipbuilding joint venture between China COSCO Shipping Corp Ltd and Japan's Kawasaki Heavy Industries Ltd, also aims to have an annual production capacity of two LNG carriers by 2018.
In addition to LNG carriers, another Chinese shipyard, Shanghai Waigaoqiao Shipbuilding Co Ltd, is building a cruise liner, the first such vessel to be built on the Chinese mainland. It is expected to be delivered to a Hong Kong-based buyer in 2023, marking a milestone in the evolution of the country's shipbuilding industry.
The as-yet-unnamed ship will be built at Shanghai Waigaoqiao Shipbuilding Co, a joint venture between CSSC and Italy-based Fincantieri SpA, the world's largest builder of cruise ships.
Waigaoqiao Shipbuilding, another CSSC subsidiary, announced earlier this month it will inject another 720 million yuan into its cruise liner building technology company to improve its research and development strength.
The Hong Kong client will order two new liners from the CSSC-Fincantieri joint venture. It has an option to order four more home-built ships.
"The construction of China's first cruise ship will help improve various sectors of the domestic shipbuilding ecosystem, which will become part of the global supply chain," said Dong Liwan, a shipbuilding professor at Shanghai Maritime University.
Even though Chinese shipyards have recovered a bit in the first half of this year, Dong said competition with South Korean competitors will be fierce in the long term, especially at a time when the whole industry is witnessing price wars and demanding advanced ships with more functions.
South Korean shipyards received 34 percent of global orders in the first half of this year, to top the world's country-wise list for the industry's giants, according to British shipping and offshore market intelligence provider Clarkson Research Services Ltd.
Three South Korean companies including Hyundai Heavy Industries Co and Hyundai Samho Heavy Industries Co, received 72 ship orders, including 60 for oil tankers and very large crude carriers or VLCCs, with a total value of $4.2 billion.
Meantime, Samsung Heavy Industries Co received orders worth $4.8 billion to build LNG carriers, mega-container ships and VLCCs from shipowners in Southeast Asia and Europe.
zhongnan@chinadaily.com.cn
Building new marine economy
By Zhong Nan
After delivering frigates to naval forces of Algeria and Pakistan, and mega-container ships, liquefied natural gas or LNG carriers and vehicle carriers to shipowners in the United States, Norway, Denmark, Germany and Singapore, Chinese shipyards have recently made inroads into the high-end ship segment, to compete with their South Korean competitors.
What's facilitating that trend is the "marine economy", whose meaning has widened in recent times to include industries like shipping, fishing, aquaculture, oil and gas.
Marine economy now includes sectors such as marine chemistry, biomedicine, ocean power, seawater use, marine tourism, ocean engineering and construction. A large variety of vessels serve these industries and sectors. Conventional vessels like bulk ships and ore carriers are no longer the kings of the marine economy transport system.
The new-age marine economy has created new opportunities for shipyards. More so for Chinese shipyards because of the Belt and Road Initiative.
Many economies participating in the initiative are seeking to develop trade, regional connectivity, offshore energy, tourism and other service businesses via the 21st Century Maritime Silk Road. Additional demand for ships is coming from China's increasing resource deployment into high-end manufacturing as part of the Made in China 2025 strategy.
Lin Zhongqin, president of Shanghai Jiaotong University, said capable Chinese shipyards have already upgraded their products, having sold cheap bulk carriers and tugboats for more than a decade. They now make complex, high value-added vessels to reach buyers in new segments through international collaboration, research and development activities.
Shanghai-based Hudong-Zhonghua Shipbuilding (Group) Co, a subsidiary of China State Shipbuilding Corp, bagged an order for four LNG carriers with tank capacity of 174,000 cubic meters each from Japan's Mitsui O.S.K. Lines or MOL last month. The total value of this deal is 5.2 billion yuan ($735 million).
These LNG carriers will be equipped with the latest dual-fuel system technology developed by the Chinese shipyard. The technology helps lower a ship's fuel consumption by up to 16 percent.
The vessel will be used in Russia's Yamal LNG project from 2019 or 2020 onward, through a wholly-owned subsidiary of MOL. The four contracted carriers will transport European LNG to and from the project.
Hudong-Zhonghua also delivered container-carriers, vehicle-carriers and chemical tankers to clients in Sweden and the Netherlands earlier this year.
Chen Jianliang, chairman of Hudong-Zhonghua, said China, as well as both developed and developing countries, are all eager to purchase natural gas from abroad to adopt greener energy. LNG carriers can meet the demand to secure their energy supply from overseas markets.
The American Bureau of Shipping, a Houston-based classification society, predicted that around 100 LNG carriers will be bought by different shipowners across the globe between 2017 and 2020.
"China is shifting from producing inefficient and dated vessels that are clogging up Chinese shipyards to investing heavily in the rapidly growing market of LNG and liquefied petroleum gas or LPG carriers, as well as marine fishing ships, law enforcement vessels, large icebreakers and chemical tankers," said Chen.
To date, Hudong-Zhonghua has built 13 LNG carriers on orders placed by both domestic and foreign companies, including CNOOC Energy Technology and Services, China LNG Shipping Ltd, Teekay LNG Partners and British Gas Services Ltd.
Even though many Chinese shipyards went bankrupt and remerged last year, the operational revenue of Hudong-Zhonghua was 18.35 billion yuan, up a bit from 2015.
The new course adopted by shipyards in Jiangsu, Zhejiang, and Shanghai is largely the result of many global shipping companies reporting losses since 2008 because of overcapacity, declining global trading volume, falling ship prices, surging costs in labor, energy, steel, ship parts and maintenance.
Eager to enhance its earning ability, Nantong COSCO KHI Ship Engineering Co, a 50:50 shipbuilding joint venture between China COSCO Shipping Corp Ltd and Japan's Kawasaki Heavy Industries Ltd, also aims to have an annual production capacity of two LNG carriers by 2018.
In addition to LNG carriers, another Chinese shipyard, Shanghai Waigaoqiao Shipbuilding Co Ltd, is building a cruise liner, the first such vessel to be built on the Chinese mainland. It is expected to be delivered to a Hong Kong-based buyer in 2023, marking a milestone in the evolution of the country's shipbuilding industry.
The as-yet-unnamed ship will be built at Shanghai Waigaoqiao Shipbuilding Co, a joint venture between CSSC and Italy-based Fincantieri SpA, the world's largest builder of cruise ships.
Waigaoqiao Shipbuilding, another CSSC subsidiary, announced earlier this month it will inject another 720 million yuan into its cruise liner building technology company to improve its research and development strength.
The Hong Kong client will order two new liners from the CSSC-Fincantieri joint venture. It has an option to order four more home-built ships.
"The construction of China's first cruise ship will help improve various sectors of the domestic shipbuilding ecosystem, which will become part of the global supply chain," said Dong Liwan, a shipbuilding professor at Shanghai Maritime University.
Even though Chinese shipyards have recovered a bit in the first half of this year, Dong said competition with South Korean competitors will be fierce in the long term, especially at a time when the whole industry is witnessing price wars and demanding advanced ships with more functions.
South Korean shipyards received 34 percent of global orders in the first half of this year, to top the world's country-wise list for the industry's giants, according to British shipping and offshore market intelligence provider Clarkson Research Services Ltd.
Three South Korean companies including Hyundai Heavy Industries Co and Hyundai Samho Heavy Industries Co, received 72 ship orders, including 60 for oil tankers and very large crude carriers or VLCCs, with a total value of $4.2 billion.
Meantime, Samsung Heavy Industries Co received orders worth $4.8 billion to build LNG carriers, mega-container ships and VLCCs from shipowners in Southeast Asia and Europe.
zhongnan@chinadaily.com.cn
JSCh
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China Port Plans Hit $20 Billion Mark
17 Jul 2017 10.41am
Chinese entities have doubled the value of overseas port projects targeted for investment since last year, potentially expanding China’s maritime and soft economic power at a rapid rate, according to the Financial Times.
A recent study by UK investment bank Grisons Peak found that Chinese companies plan to buy or invest in nine overseas ports.
Chinese port projects outside of China totalling of US$20 billion means this type of investment has gone up $9.97 billion in the year leading up to June, 2017.
This figure includes four projects in Malaysia: the $7.2 billion Melaka Gateway, the $2.84 billion Kuala Linggi Port, the $1.4 billion Penang Port and a $177 million in projects at Kuantan port.
The Chinese integrated regional port of Ningbo Zhoushan plans to invest $590 million into the Kalibaru project, an expansion of Tanjung Priok port In Indonesia.
China Merchants, a port operator, is mulling plans to build a large new container port at Klaipeda in Lithuania.
Other Chinese entities have considered investments at the Norwegian port of Kirkenes and at two Icelandic ports.
Chinese port purchases were sited in the regions dubbed “blue economic passages”, first announced by the government in June.
These passages are the China-Indian Ocean-Africa-Mediterranean passage; the China-Oceania-South Pacific passage; and a passage leading to Europe by way of the Arctic Ocean.
The Arctic Ocean route has thick ice which means it is not currently navigable by most ships, but is predicted to open up as the ice melts due to global warming. The Chinese government may possibly intend to speed opening of new shipping routes through the Arctic circle.
China’s government has previously laid out its “One Belt One Road” policy to forge market and diplomatic ties with 65 countries.
It also plans to secure sea lanes and establish itself as a maritime power.
Henry Tillman, chief executive of Grisons Peak, said: “In the past year, China has now announced . . . all three of its blue economic passages, so it is not surprising to see this significant level of increased investment in ports and shipping.”
China Port Plans Hit $20 Billion Mark - Port Technology International
17 Jul 2017 10.41am
Chinese entities have doubled the value of overseas port projects targeted for investment since last year, potentially expanding China’s maritime and soft economic power at a rapid rate, according to the Financial Times.
A recent study by UK investment bank Grisons Peak found that Chinese companies plan to buy or invest in nine overseas ports.
Chinese port projects outside of China totalling of US$20 billion means this type of investment has gone up $9.97 billion in the year leading up to June, 2017.
This figure includes four projects in Malaysia: the $7.2 billion Melaka Gateway, the $2.84 billion Kuala Linggi Port, the $1.4 billion Penang Port and a $177 million in projects at Kuantan port.
The Chinese integrated regional port of Ningbo Zhoushan plans to invest $590 million into the Kalibaru project, an expansion of Tanjung Priok port In Indonesia.
China Merchants, a port operator, is mulling plans to build a large new container port at Klaipeda in Lithuania.
Other Chinese entities have considered investments at the Norwegian port of Kirkenes and at two Icelandic ports.
Chinese port purchases were sited in the regions dubbed “blue economic passages”, first announced by the government in June.
These passages are the China-Indian Ocean-Africa-Mediterranean passage; the China-Oceania-South Pacific passage; and a passage leading to Europe by way of the Arctic Ocean.
The Arctic Ocean route has thick ice which means it is not currently navigable by most ships, but is predicted to open up as the ice melts due to global warming. The Chinese government may possibly intend to speed opening of new shipping routes through the Arctic circle.
China’s government has previously laid out its “One Belt One Road” policy to forge market and diplomatic ties with 65 countries.
It also plans to secure sea lanes and establish itself as a maritime power.
Henry Tillman, chief executive of Grisons Peak, said: “In the past year, China has now announced . . . all three of its blue economic passages, so it is not surprising to see this significant level of increased investment in ports and shipping.”
China Port Plans Hit $20 Billion Mark - Port Technology International
JSCh
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Sri Lankan cabinet approves agreement with China on Hambantota Port
Source: Xinhua| 2017-07-26 08:24:26|Editor: Yang Yi
Sri Lanka's Minister of Ports and Shipping Mahinda Samarasinghe (L) speaks at a media briefing in Colombo, Sri Lanka, on July 25, 2017. Sri Lankan cabinet has approved agreement with China on Hambantota Port, describing it as "a win-win situation for both countries." (Xinhua/Ajith Perera)
COLOMBO, July 26 (Xinhua) -- Sri Lankan cabinet has approved agreement with China on Hambantota Port, describing it as "a win-win situation for both countries."
Under the agreement, China Merchants Port Holdings will own 70 percent stake of the port while Sri Lanka Ports Authority will own 30 percent, Ports Minister Mahinda Samarasinghe said late Tuesday.
Speaking at a media briefing in Colombo, Samarasinghe said the matter will also be discussed in parliament on Friday and all legislators will be briefed about the agreement signed between the two countries.
"This agreement will be a win-win situation for both China and Sri Lanka. We hope to strengthen the operations of the Hambantota Port which will be beneficial for Sri Lanka," Samarasinghe said.
China Merchants Port Holdings will manage the operations of the port. Sri Lanka will manage the security of the port along with the navigation and approvals.
Samarasinghe added that although negotiations with China Merchants Port Holdings took a long time, all matters regarding the agreement had been thoroughly discussed for the benefit of both China and Sri Lanka.
He further explained that after 10 years, if Sri Lanka wished to purchase an additional 20 percent stake of the port, they could do so by purchasing it, resulting in China and Sri Lanka owning an equal share of 50 percent each.
Source: Xinhua| 2017-07-26 08:24:26|Editor: Yang Yi
COLOMBO, July 26 (Xinhua) -- Sri Lankan cabinet has approved agreement with China on Hambantota Port, describing it as "a win-win situation for both countries."
Under the agreement, China Merchants Port Holdings will own 70 percent stake of the port while Sri Lanka Ports Authority will own 30 percent, Ports Minister Mahinda Samarasinghe said late Tuesday.
Speaking at a media briefing in Colombo, Samarasinghe said the matter will also be discussed in parliament on Friday and all legislators will be briefed about the agreement signed between the two countries.
"This agreement will be a win-win situation for both China and Sri Lanka. We hope to strengthen the operations of the Hambantota Port which will be beneficial for Sri Lanka," Samarasinghe said.
China Merchants Port Holdings will manage the operations of the port. Sri Lanka will manage the security of the port along with the navigation and approvals.
Samarasinghe added that although negotiations with China Merchants Port Holdings took a long time, all matters regarding the agreement had been thoroughly discussed for the benefit of both China and Sri Lanka.
He further explained that after 10 years, if Sri Lanka wished to purchase an additional 20 percent stake of the port, they could do so by purchasing it, resulting in China and Sri Lanka owning an equal share of 50 percent each.
JSCh
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Next Up: Abu Dhabi; China’s Maritime Silk Road Breaks Into The Middle East
in International Shipping News 04/08/2017
The next stop on China’s “21st Century Maritime Silk Road” has been chosen: Abu Dhabi. At the end of last month, China’s Jiangsu province signed a deal with the UAE’s Abu Dhabi Ports to develop a $300 million manufacturing operation in the free trade zone of Khalifa Port.
The deal will see China getting 2.2 million square meters of space in the FTZ for Chinese companies to do what they do best: make stuff. Five Chinese firms, who engage in a variety of sectors, including clean energy, mining, construction materials, steel, and environmental clean up technologies, have already signed on to the endeavor.
According to Seatrade Maritime, the UAE handles 60% of China’s exports throughout the region, with a trade value in the ballpark of $70 billion each year.
This deal comes in the wake of another which occurred at the end of last year which saw China’s COSCO shipping winning the rights to develop and operate a new container terminal at Khalifa Port, the second busiest port in the UAE to Dubai, for the next 35 years at a cost of $738 million.
While big ocean shipping companies owning and/or operating terminals and ports on foreign terrain is a standard operating procedure for the industry — Denmark’s Maersk line is running terminals in 36 countries, Switzerland’s Mediterranean Shipping Co. is operating in 22 countries, and Dubai Ports World is in 40 countries, for example — these are generally mono-faceted, shipping-centric operations. Where China is different is that they often don’t only come in and open a new port but invest in an adjoining free trade/special economic zone and other development initiatives as well — which they ideally stock full of Chinese companies. With China, countries get the entire development package.
Jiangsu province’s recent investment in the Khalifa Free Trade Zone and COSCO’s commitment to the Khalifa Port is all a part of China’s Maritime Silk Road project — the watery half of the broader Belt and Road Initiative — which seeks to establish an enhanced and interconnected network of Chinese-run ports and manufacturing zones along the route from the east coast of China to Europe. This is an endeavor that is coming together very quickly, with China pumping over $46.6 billion into new/reinvigorated port projects in countries such as Indonesia, Myanmar, Australia, Sri Lanka, Tanzania, Djibouti, Greece, and now the UAE.
These Maritime Silk Road investments benefit China in two main ways: 1) China is able to invest enough money and resources to make them viable economic entities which help to extend the country’s commercial reach throughout a vast part of the world. 2) It further enmeshes China into the political and economic fabric of Eurasia. While we see the bright glitter of billions of dollars flashing by today, these projects mean that China is going to have a strong foothold in these countries for the long-term: China is entering spaces today that they will occupy for decades, establishing an entirely new geo-political paradigm in the process. And as Sri Lanka recently discovered, China is a houseguest that is very hard to get rid of.
While the BRI is ultimately a top-down, Beijing-devised expansionist strategy, it is often individual provinces that are going out into the field and getting their hands dirty. Regardless of how it appears from the outside, the Communist Part of China is not a monolithic organization — various levels of government and factions maintain huge amounts of power and decision-making ability. As far as Belt and Road development is concerned, Jiangsu province has been one of the most active players, with key overland and maritime ports and other big investments being laid down throughout the various routes. This new $300 million Khalifa deal fits right into a portfolio which includes such massive investments as a $600 million (promised) manufacturing operation in Kazakhstan’s Khorgos East Gate SEZ.
Why this is good for Abu Dhabi?
It is obvious why this port / FTZ deal is good for China, but what does Abu Dhabi get out of it?
In brief, they get a port and a section of a key FTZ built, funded, and started up for them by China, as well as $300 million on top of it. Even if Abu Dhabi doesn’t directly economically benefit from these projects beyond the initial investment capital, they can serve as catalysts for other projects to grow up around them (i.e. factories need local suppliers, workers, etc).
The idea behind these places is for them to become multinational hubs of transport, production, and commerce. Khalifa port and FTZ is a very big place that is designed to bring in investment from many different countries from around the world — not just China — and the land area allotted to the Jiangsu province operation amounts to just 2.2% of the available land in the FTZ. However, China is often a key part of these plans, as the country has the political will and capital to come in and get the ball rolling. Such new transportation and manufacturing capacity creates new possibilities — and such new possibilities is precisely what oil-reliant Abu Dhabi is looking for.
The UAE has the world’s fifth-largest oil reserves, and Abu Dhabi controls 95% of them. This oil supply has allowed Abu Dhabi to prosper; however, the emirate sees the writing on the wall: either their oil stores are eventually going to dry up or the world is going to start losing interest in them, relegating fossil fuels to an archaic, niche energy source as we theoretically transition to other sources. To these ends, Abu Dhabi has set itself on a trajectory to diversify its economy away from oil-reliance. Dubbed “Abu Dhabi Economic Vision 2030,” the emirate has outlined how it’s going to build a “sustainable economy” by bolstering its tourism, manufacturing, health care, petrochemical, financial services, and renewable energy sectors.
The 100-square-kilometer Khalifa Port FTZ is a major part of this diversification program. Launched earlier this year and scheduled for completion in 2030, the port/FTZ combo is expected to eventually be responsible for 15% of Abu Dhabi’s non-oil GDP.
Abu Dhabi seems to be looking over the border at their neighboring emirate Dubai for inspiration here. Not being blessed — or cursed — with large reserves of oil, Dubai set out to develop their economy in a different direction. Rather than erecting thickets of oil wells they erected gantry cranes, factories, airports, shopping malls, and skyscrapers; rather than surviving off the whims of the global energy market, they gunned for tourism, FDI, technological innovation, logistics, real estate, and financial services; rather than trying to build their economy from the inside out, they invited the outside world to come in. Along the way, they created a global epicenter for trade and one of the most international cities on the planet — 85% of the population of Dubai are expats.
What we see in Dubai today was developed in synergy with the Jebel Ali Free Zone (JAFZA) — the world’s largest functioning free economic zone. JAFZA was built from scratch in accordance with a top-down plan, and is now the model for other such zones that are sprouting up along the various routes of the New Silk Road. This place that hardly even existed 30 years ago now contains over 7,000 international companies — including 100 of the Fortune 500 firms — employs nearly 150,000 people, and is responsible for roughly 21% of Dubai’s GDP ($87.6 billion in 2015), including $12.6 billion worth of trade with China.
Clearly, Abu Dhabi wants to get itself some of that.
Source: Forbes
Next Up: Abu Dhabi; China’s Maritime Silk Road Breaks Into The Middle East | Hellenic Shipping News Worldwide
in International Shipping News 04/08/2017
The next stop on China’s “21st Century Maritime Silk Road” has been chosen: Abu Dhabi. At the end of last month, China’s Jiangsu province signed a deal with the UAE’s Abu Dhabi Ports to develop a $300 million manufacturing operation in the free trade zone of Khalifa Port.
The deal will see China getting 2.2 million square meters of space in the FTZ for Chinese companies to do what they do best: make stuff. Five Chinese firms, who engage in a variety of sectors, including clean energy, mining, construction materials, steel, and environmental clean up technologies, have already signed on to the endeavor.
According to Seatrade Maritime, the UAE handles 60% of China’s exports throughout the region, with a trade value in the ballpark of $70 billion each year.
This deal comes in the wake of another which occurred at the end of last year which saw China’s COSCO shipping winning the rights to develop and operate a new container terminal at Khalifa Port, the second busiest port in the UAE to Dubai, for the next 35 years at a cost of $738 million.
While big ocean shipping companies owning and/or operating terminals and ports on foreign terrain is a standard operating procedure for the industry — Denmark’s Maersk line is running terminals in 36 countries, Switzerland’s Mediterranean Shipping Co. is operating in 22 countries, and Dubai Ports World is in 40 countries, for example — these are generally mono-faceted, shipping-centric operations. Where China is different is that they often don’t only come in and open a new port but invest in an adjoining free trade/special economic zone and other development initiatives as well — which they ideally stock full of Chinese companies. With China, countries get the entire development package.
Jiangsu province’s recent investment in the Khalifa Free Trade Zone and COSCO’s commitment to the Khalifa Port is all a part of China’s Maritime Silk Road project — the watery half of the broader Belt and Road Initiative — which seeks to establish an enhanced and interconnected network of Chinese-run ports and manufacturing zones along the route from the east coast of China to Europe. This is an endeavor that is coming together very quickly, with China pumping over $46.6 billion into new/reinvigorated port projects in countries such as Indonesia, Myanmar, Australia, Sri Lanka, Tanzania, Djibouti, Greece, and now the UAE.
These Maritime Silk Road investments benefit China in two main ways: 1) China is able to invest enough money and resources to make them viable economic entities which help to extend the country’s commercial reach throughout a vast part of the world. 2) It further enmeshes China into the political and economic fabric of Eurasia. While we see the bright glitter of billions of dollars flashing by today, these projects mean that China is going to have a strong foothold in these countries for the long-term: China is entering spaces today that they will occupy for decades, establishing an entirely new geo-political paradigm in the process. And as Sri Lanka recently discovered, China is a houseguest that is very hard to get rid of.
While the BRI is ultimately a top-down, Beijing-devised expansionist strategy, it is often individual provinces that are going out into the field and getting their hands dirty. Regardless of how it appears from the outside, the Communist Part of China is not a monolithic organization — various levels of government and factions maintain huge amounts of power and decision-making ability. As far as Belt and Road development is concerned, Jiangsu province has been one of the most active players, with key overland and maritime ports and other big investments being laid down throughout the various routes. This new $300 million Khalifa deal fits right into a portfolio which includes such massive investments as a $600 million (promised) manufacturing operation in Kazakhstan’s Khorgos East Gate SEZ.
Why this is good for Abu Dhabi?
It is obvious why this port / FTZ deal is good for China, but what does Abu Dhabi get out of it?
In brief, they get a port and a section of a key FTZ built, funded, and started up for them by China, as well as $300 million on top of it. Even if Abu Dhabi doesn’t directly economically benefit from these projects beyond the initial investment capital, they can serve as catalysts for other projects to grow up around them (i.e. factories need local suppliers, workers, etc).
The idea behind these places is for them to become multinational hubs of transport, production, and commerce. Khalifa port and FTZ is a very big place that is designed to bring in investment from many different countries from around the world — not just China — and the land area allotted to the Jiangsu province operation amounts to just 2.2% of the available land in the FTZ. However, China is often a key part of these plans, as the country has the political will and capital to come in and get the ball rolling. Such new transportation and manufacturing capacity creates new possibilities — and such new possibilities is precisely what oil-reliant Abu Dhabi is looking for.
The UAE has the world’s fifth-largest oil reserves, and Abu Dhabi controls 95% of them. This oil supply has allowed Abu Dhabi to prosper; however, the emirate sees the writing on the wall: either their oil stores are eventually going to dry up or the world is going to start losing interest in them, relegating fossil fuels to an archaic, niche energy source as we theoretically transition to other sources. To these ends, Abu Dhabi has set itself on a trajectory to diversify its economy away from oil-reliance. Dubbed “Abu Dhabi Economic Vision 2030,” the emirate has outlined how it’s going to build a “sustainable economy” by bolstering its tourism, manufacturing, health care, petrochemical, financial services, and renewable energy sectors.
The 100-square-kilometer Khalifa Port FTZ is a major part of this diversification program. Launched earlier this year and scheduled for completion in 2030, the port/FTZ combo is expected to eventually be responsible for 15% of Abu Dhabi’s non-oil GDP.
Abu Dhabi seems to be looking over the border at their neighboring emirate Dubai for inspiration here. Not being blessed — or cursed — with large reserves of oil, Dubai set out to develop their economy in a different direction. Rather than erecting thickets of oil wells they erected gantry cranes, factories, airports, shopping malls, and skyscrapers; rather than surviving off the whims of the global energy market, they gunned for tourism, FDI, technological innovation, logistics, real estate, and financial services; rather than trying to build their economy from the inside out, they invited the outside world to come in. Along the way, they created a global epicenter for trade and one of the most international cities on the planet — 85% of the population of Dubai are expats.
What we see in Dubai today was developed in synergy with the Jebel Ali Free Zone (JAFZA) — the world’s largest functioning free economic zone. JAFZA was built from scratch in accordance with a top-down plan, and is now the model for other such zones that are sprouting up along the various routes of the New Silk Road. This place that hardly even existed 30 years ago now contains over 7,000 international companies — including 100 of the Fortune 500 firms — employs nearly 150,000 people, and is responsible for roughly 21% of Dubai’s GDP ($87.6 billion in 2015), including $12.6 billion worth of trade with China.
Clearly, Abu Dhabi wants to get itself some of that.
Source: Forbes
Next Up: Abu Dhabi; China’s Maritime Silk Road Breaks Into The Middle East | Hellenic Shipping News Worldwide
JSCh
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Chinese yards picked to build world's largest boxships
China Plus
Published: 2017-08-21 17:22:21
Two Chinese shipyards have reportedly signed a letter of intent with French liner CMA-CGM Group for the construction of up to nine 22,000 TEU (twentyfoot equivalent unit) megaships, reports Huangqiu.com.
File photo of the current largest ship, the 'OOCL Hong Kong'. [Photo: ifeng.com]
The Chinese companies have reportedly secured the $1.4 billion US dollar order after out-bidding South Korean rivals including Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering.
Hudong-Zhonghua Shipbuilding will be in charge of constructing five of the ships. Shanghai Waigaoqiao Shipbuilding will build the remaining four units. Both companies are major shipbuilding firms owned by the China State Shipbuilding Corporation.
The new class of ships are going to have a world-record displacement as compared to the current largest ship, the 'OOCL Hong Kong,' which has a displacement of 21,413 TEU worth of capacity.
The ships are going to be powered by Liquified Natural Gas.
It's being reported the ships will be delivered by 2020.
After lagging behind their South Korean counterparts for years, Chinese shipbuilders are said to be making significant headway.
Industry analysis out of South Korea is predicting China-based shipbuilders are likely to start surpassing South Korean shipmakers in the production of high-end vessels by 2020.
China Plus
Published: 2017-08-21 17:22:21
Two Chinese shipyards have reportedly signed a letter of intent with French liner CMA-CGM Group for the construction of up to nine 22,000 TEU (twentyfoot equivalent unit) megaships, reports Huangqiu.com.
The Chinese companies have reportedly secured the $1.4 billion US dollar order after out-bidding South Korean rivals including Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering.
Hudong-Zhonghua Shipbuilding will be in charge of constructing five of the ships. Shanghai Waigaoqiao Shipbuilding will build the remaining four units. Both companies are major shipbuilding firms owned by the China State Shipbuilding Corporation.
The new class of ships are going to have a world-record displacement as compared to the current largest ship, the 'OOCL Hong Kong,' which has a displacement of 21,413 TEU worth of capacity.
The ships are going to be powered by Liquified Natural Gas.
It's being reported the ships will be delivered by 2020.
After lagging behind their South Korean counterparts for years, Chinese shipbuilders are said to be making significant headway.
Industry analysis out of South Korea is predicting China-based shipbuilders are likely to start surpassing South Korean shipmakers in the production of high-end vessels by 2020.
JSCh
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- Jun 9, 2011
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China's first self-developed ultra-low temperature tuna transport ship registered
(People's Daily Online) 17:17, August 22, 2017
(Chinanews.com/provided by Zhoushan Entry-Exit Inspection and Quarantine Bureau)
China's first self-developed ultra-low temperature transport ship has been registered and is ready to be put into use, according to the Zhoushan Entry-Exit Inspection and Quarantine Bureau on Aug. 21, China News reported.
The transport ship is 108 meters long, 15.6 meters wide, and 9.2 meters deep, with 6,000 deadweight tonnage and ultra-low temperature refrigeration technology of negative 60 degrees centigrade.
The ship belongs to the Zhejiang Ping Tai Rong Ocean Fishery Group. Established in 2007, the Group owns 28 ultra-low temperature long-distance ocean-going fishing vessels working in waters including the Pacific Ocean and the Atlantic and Indian oceans.
Group Chairman Ni Jianbo said that they used to transport tuna back to China by keeping fish in containers or refrigerated cargo ships rented from foreign companies, which is expensive and inconvenient. This self-developed ship is able to address that issue.
The Bureau now plans to help the Group that owns the transport ship register in the EU.
(People's Daily Online) 17:17, August 22, 2017
China's first self-developed ultra-low temperature transport ship has been registered and is ready to be put into use, according to the Zhoushan Entry-Exit Inspection and Quarantine Bureau on Aug. 21, China News reported.
The transport ship is 108 meters long, 15.6 meters wide, and 9.2 meters deep, with 6,000 deadweight tonnage and ultra-low temperature refrigeration technology of negative 60 degrees centigrade.
The ship belongs to the Zhejiang Ping Tai Rong Ocean Fishery Group. Established in 2007, the Group owns 28 ultra-low temperature long-distance ocean-going fishing vessels working in waters including the Pacific Ocean and the Atlantic and Indian oceans.
Group Chairman Ni Jianbo said that they used to transport tuna back to China by keeping fish in containers or refrigerated cargo ships rented from foreign companies, which is expensive and inconvenient. This self-developed ship is able to address that issue.
The Bureau now plans to help the Group that owns the transport ship register in the EU.
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