Chinese yards seek growth with special purpose vessels

Chinese yards seek growth with special purpose vessels

Singapore: With the traditional shipping market still in the slow recovering process and the offshore market struggling, some Chinese shipyards are looking to find new growth areas in special purpose vessels, representatives from a number of Chinese yards told Splash.

An official from Jiaolong Heavy Industries said the yard is looking to expand into the wind turbine installation vessel market, the yard has developed a new design and in negotiations with some potential clients. “I think it is a promising market but the government should offer more guidance to support the yards,” the official added.

Li Jiamin, a representative from Guangzhou-based Yuexin Ocean Engineering, a shipyard primarily building offshore vessels, told Splash that the yard’s offshore business has been good so far, however, the yard has noticed the potential price drop in the sector, and is looking to expand its portfolio into special purpose vessels including dredgers.

AVIC International Offshore, the offshore division of state-run AVIC International, is also considering developing more ship types. According to Xu Chunrou, a senior manager at the company, the yard is currently doing research.

“Currently it is hard to say which ship type is good for profiting, the important thing is to keep the shipyard running,” the official from Jiaolong Heavy Industries said.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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