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Promising Future for Shanghai's Shipbuilding
5/26/2003
Shanghai shipbuilding is on course to grasp the opportunities presented by the warming global economy and transform itself into a world leader, according to China Daily. The industry aims to achieve the output of 3.5 million tons by 2005 and 8 million by 2010, by which time it will have secured 18 per cent of the world's total. The planned relocation of Shanghai Shipyard and Jiangnan Shipyard ties in well with the city's industrial restructuring and the ongoing construction of the city's waterways, both of which present an opportunity to develop the local shipbuilding industry.
Shanghai Shipyard will be moved from the Lujiazui area to Chongming and Jiangnan Shipyard will be relocated on Changxing Island now that the new docks construction is underway. Hudong Zhonghua Shipyard is converting its strategy to focus on more value-added products, such as large container ships and liquified natural gas tankers. It has recently signed a contract with China Shipping Group to build five 5,668 TEU container ships.
The growing focus of offshore oil exploration provides an opening into a new market for Shanghai's oldest shipyard, Jiangnan, which last month signed a contract to build two 625,000-barrel Floating Production, Storage and Offloading vessels. Shanghai Waigaoqiao Shipyard, which will complete its first phase of construction this October, has secured 2.5 million tons in orders. With investments in excess of 8 billion yuan (US$967 million), the shipyard may become China's largest and most promising.
