China's shipbuilders need technology to keep edge

A rapidly appreciating yuan, rising labour costs and inflation will make it 'extremely difficult' for China's shipbuilding industry to maintain its competitive advantage, the head of the country's industry leader said yesterday.

Tan Zuojun, president of China State Shipbuilding Corp, said the shipbuilding industry must refocus on 'technological innovation so as to meet intense and cruel competition and challenges in the future'.

He said this included the development of new, more fuel efficient and environmentally friendly vessels and ship machinery as well building higher value ships including passenger cruise liners.

China has tussled with South Korea for the title of the world's largest shipbuilding nation for the past two years. But while South Korean shipyards have concentrated on building high value and sophisticated vessels such as drill ships and ultra-large containerships of more than 10,000 teu (20-foot equivalent units), China's have targeted dry cargo bulk carriers, smaller sized containerships of 4,000 to 8,000 teu and medium range tankers.

Pointing to the innovations his group has introduced, Tan said subsidiaries such as Guangzhou Shipyard International and Jiangnan Shipyard developed dry cargo bulk carriers and tankers that consume 10 to 15 per cent less fuel.

Another unit, Shanghai Waigaoqiao Shipbuilding, had designed 206,000 deadweight tonne coal and iron ore carriers to operate in shallow draft conditions with a longer range, Tan told the China Shipbuilding Forum. These design innovations offer greater operating flexibility while optimising engine efficiencies.