Enhance cooperation to seek mutual development

1
Enhance cooperation to seek mutual development

• CSNAME

2
1?Condition of China shipbuilding
industry
3
1) China shipbuilding industry is developing
rapidly in these years.
4

• First, The output is increasing rapidly. From
  2000 to 2004, the output of China shipbuilding
  industry has increased by 26 annually. The
  shipbuilding output of China reaches 8.8million
  dwt in 2004, 14 of the global share. China has
  remained the worlds third largest output
  shipbuilder for consecutive ten years. Its total
  output in 2005 is expected to exceed 10million
  dwt, a global share of 18 is expected.

5

• Second, The structure of products has been
  undergoing changes. After the completions of the
  300000dwt VLCC, 175000dwt bulk carrier and 5668
  TUE containership, and 8000TUE containership,
  China
• has entered into LNG shipbuilding market
  successfully. Its longstanding experience and
  comprehensive range of skills has resulted in the
  capability to build all kinds of hi-quality
  ships. The quality of China-made main engines,
  auxiliary engines have reached the world advanced
  level.
• Lot of home-made marine equipment have been
• used on the domestic shipping vessels and
  ships exported outside. China has considerable
  experience in designing and building many
  different types of offshore products, such as
  platforms and FPSO over 200,000 dwt.

6

• Ships built by China have been exported to over
  100 countries and regions including USA, Japan,
  Germany, France and Canada. The shipbuilding
  industry has become an important part in Chinas
  foreign trade business. The total volume of
  exported ships in 2004 reached 5.6 million DWT,
  valued US3.16 billion.

7

• Third, quality economic progress achieved. The
  output, income and profits of China shipbuilding
  industry have been improved greatly in 2004.
  Great progress has been achieved in the structure
  reform by China shipbuilding industry. An
  shipbuilding base with a proper structure and
  layout consisting of state-owned enterprises,
  private enterprises,joint ventures and foreign
  solely owned enterprises has been setting up
  through management system reform.

8
2) Make great effort to serve the world shipping
industry
9

• As a member of the shipbuilding community, we pay
  more attention to the effects put by global
  economic growth and international trade on the
  development of both shipping market and
  shipbuilding industry in recent years.
• According to IMF statistics, in past 4 years, the
  global GDP grew by 2.4, 3, 3.9, 5
  respectively, while the global export and import
  volume grew by 0.1, 3.3, 5.1 and 8.8
  respectively thanks to the rapid world economic
  growth especially Chinese economic growth.
• At present, 90 of the export and import goods in
  the world have been carried by oceangoing
  freighters. The prosperous global trading market
  has spurred the development of global
  shipbuilding industry.

10

• It is predicted the sustained growth of China
  economy in the future will stimulate the
  development of domestic shipping industry. Ocean
  exploitation and ocean fishery development will
  increase the demand on the products of the
  chinese and the world shipbuilding industry.

11

• We are confident that China
  shipbuilding industry will provide hi-quality
  vessels, marine products and service to the
  world. We wish to make contributions to the
  development of global shipping and shipbuilding
  industry!

12
3). Challenge lies ahead
13

• Competition and risk are the two main respects
  which lies ahead of China shipbuilding industry.
  The first is market fluctuation risk. Because of
  the periodic fluctuation rule of international
  economy and shipbuilding market, unusual market
  blossoming in a period will not last a long time.
  The current price of tanker has emerged drop
  trend. With two year tides of contracting and the
  upcoming two year picks of delivery, the global
  shipbuilding market will suffer great pressure.

14

• Secondly, exchange rate fluctuation is the other
  important risk. The fluctuation will bring huge
  pressure on shipbuilding competitive power.
  Fluctuation of RMB exchange rate to other
  currency will influence the profits of Chinese
  shipyards inevitably. Additionally, the changes
  of interest rate, steel price, and labour cost
  will increase pressure on shipbuilding production
  cost. All of these are serious problems that
  China shipbuilding industry should resolve so as
  to make further development.

15
2. More attention to the changes of international
standards
16

• In recent years, IMO, IACS and international
  shipping circles have introduced many new
  international standards, such as Common Structure
  Rules (CSR), JTP, JBP, Standard for Coating on
  Ballast Tanks, and Standard on Shipbuilding
  Contract, etc. All of these items have caught
  much of our eyes.

17
1). JTP and JBP
18

• JTP and JBP of IACS will enter into force on
  April 1st, 2006. Both of them are the common
  intellectual wealth combining science
  technology achievements and operational
  experience s of the world shipping and
  shipbuilding industry. These projects will help
  us to develop and build more reliable,
  environmental and safer ships so as to avoid
  serious environmental pollution. On the other
  hand, we also know that the implementation of the
  JTP and JBP will bring new requests on ship
  design and construction. More efforts are
  necessary for China to take to adapt to these new
  rules and regulations. Therefore, were looking
  forward to communicating with shipbuilding
  colleagues, class societies and ship owners from
  other countries.

19
2). New standards for coating on ballast tanks
20

• IMO has been making new standards for coating on
  ballast tanks which are planned to come into
  effect on June 1st, 2006. In viewing of the
  effect on ship coating, production cost and
  building period brought by new standards, CSNAME
  has set up a work team focusing on the
  shipbuilding coating performance standards. The
  work team has make research on international
  shipbuilding development, investigation on
  coating technics and measures in Chinese
  shipyards, in order to hand in Chinas suggestion
  to IMO within the time.

21

• 3) Though we are concerning with the Standard
  on Shipbuilding Contract and other issues
  involved in the meeting, we have not present a
  thought because we have not yet read related
  files and details.
• But we welcome any suggestions which helpful
  to the development of shipbuilding industry, and
  expect discussion with each party.

22
3?Best wish to the Tripartite-meeting
23

• In the course of development of China
  shipbuilding industry, Chinas payed great
  attention to cooperation. Since the initiation of
  reform and opening, China has introduced more
  than 100 patents and technology for shipbuilding
  and marine equipment, which has played important
  role for improving our shipbuilding technology
  and quality level. China Shipbuilding Engineering
  Society is very interested in establishing
  friendly cooperation relationship with the
  related organizations of shipping industry,
  shipbuilding industry and classification society
  over the world.

24

• We believe that the Tripartite-meeting will
  further enhance communication and understanding
  among
• the communities of shipping, shipbuilding and
  classification society in the world. Since its
  first meeting in Singapore, the
  Tripartite-meeting has been held successively in
  Shanghai, Seoul, Osaka. Today, its
• our pleasure to hold the Tripartite-meeting
  in China again. The scale of the meeting has been
  expanding, attracting more delegates to discuss
  items. Not only
• the shipbuilding communities in China, Japan
  and Korea, but also the communities of the global
  shipbuilding, shipping and classification
  societies have eyed on it.
• The subjects under discussion on the meeting
  are important problem of common concern and
  common interests. We hope the Tripartite-meeting
  will be a long lasting platform for every party
  to communicate and exchange information and ideas
  in the future.

25
Thank you for your attention!