Breakbulk ■ ■ ■
Overseas hope Domestically the nation’s heavy machinery manufacturers are facing overcapacity. Beijing has told them to export more. Good news for local lines, reports Jason Jiang
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s traditional bulk and container sectors remain weak, breakbulk has become one of the few growth points in shipping. With opportunities from the growing number of global infrastructure projects and China becoming one of the leading manufacturers of project equipment, breakbulk players in the People’s Republic have started a new round of fleet optimisation in order to keep pace with market demand. Moreover, Beijing is helping out. At the end of 2013, the State Council introduced a new guidance to many industries, which are currently suffering from overcapacity including the heavy project machinery industry. The council is encouraging companies to expand exports as an important strategy to solve the overcapacity problem and specific favourable policies will soon be announced. Cosco Shipping, which acquired Guangzhou Ocean Shipping from parent Cosco Group in early 2013 to integrate its
special vessel shipping business, placed an order for four 36,000 dwt multipurpose vessels at CSSC Guangzhou Huangpu Shipbuilding at the end of last year. The order is worth a total of RMB894m. Earlier last year, Cosco Shipping placed orders for four similar vessels at Nantong COSCO KHI Ship Engineering (NACKS).
Infrastructure projects in emerging markets like Africa and Latin America remain active “Affected by the depression of the dry bulk market, our businesses in multipurpose vessels are weak this year and the lumber shipping business also remains at a low level amid the lumber export ban in Africa. However, we have made achievements in the adjustment of our fleet
structure and the operation of heavylift vessels and submersible vessels has gained some growth,” says a senior project manager from Cosco Shipping. “The new Chinese government has committed to further adjust the structure of the economy, while infrastructure projects in emerging markets like Africa and Latin America remain active. The growing trend for global wind power installation, and the enhancement of offshore equipment manufacturing capacity in China will all support the shipping market for special project cargoes,” the Cosco official reckons. According to the China International Contractors’ Association, although the growth of China’s overseas contracting project volumes has slowed down for the past two years due to the global economic recession, things are picking up and there should be a steady growth of about 10% annually in the next two years. “The special project cargo shipping market is expected to warm up in 2014. The SINOSHIP spring 2014
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