Maritime CEO

M3 Marine: The go-to people for China offshore yards

Singapore: China has a controlling market share in the construction of platform supply vessels (PSVs), a sector that has lost a little of its shine of late.

The number of PSVs ordered this year has declined over 2012. Nevertheless, China has accounted for close to 50% of all orders placed.

The trend in ordering has switched away from large-sized PSVs to more moderate offerings, typically with deck areas in the 500 to 750 sq m range.

Chinese PSV builders are attracting more and more international owners not only thanks to available slots, but, more importantly, cheap prices.

Mike Meade, founder of Singapore’s M3 Marine, Asia’s largest independent offshore brokerage, reckons the “strident” ordering of PSVs of late could lead to supply outstripping demand by 2015.

“Speculators like PSVs as they are easier to build and the resale margins are high,” he comments.

M3 Marine has seen a trend where owners and shipyards are building North Sea style PSVs in China of European design. Designs from the likes of Ulstein, Rolls-Royce, IMT and Vard are being built in China

Pricing is compelling, Meade admits, with a typical Chinese PSV being 60% of the cost of a European vessel.

What’s more age-old concerns about quality are no longer such a worry if contracted and supervised properly, he asserts. [28/11/13]

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