New icebreaker needed in the Great Lakes
Great Lakes lawmakers are hoping that another icebreaker can be added into any kind of infrastructure rebuilding plan that comes out of Congress.
Congresswoman Candice Miller (R-MI) recently joined her Senate and House colleagues of the Great Lakes region in urging Admiral Thad Allen of the United States Coast Guard to increase icebreaking capabilities in the Great Lakes. "The ability of watercraft to transit the Great Lakes during winter months is imperative to keeping commerce moving and protecting jobs in Great Lakes states. The flow of cargo through our waterways far exceeds a billion dollars during the winter months. Frozen waterways which disrupt or delay cargo can have a detrimental impact on our economy and cause further job loss. Not only are our waterways necessary for our economy, but search and rescue and flood prevention are impaired if we fail to restore water flow to ice clogged rivers," Miller said. Ice coverage of the Great Lakes varies in severity each winter, but in a typical year ice covers over half of Lake HuronÕs surface. There are currently eight Coast Guard vessels stationed in the Great Lakes available for ice-breaking duties. Only one vessel conducts ice breaking in the St. Clair River, Lake St. Clair and the Detroit River which are vital to the Southeast Michigan region. Many times there are simply not enough vessels to cover the ice clogged areas. In addition to the difficulty blocked water-ways causes for commerce and transportation, the lack of a Coast Guard ice-capable vessel in Lake Ontario leaves the northern maritime border vulnerable. "While the 225-foot Hollyhock stationed in Port Huron is one of the newest additions to the fleet, it can only be in one place at a time and already has a huge amount of territory to cover." Miller continued, "I believe that more must be done in order to ensure adequate ice breaking capacity in the Great Lakes, and urge the Coast Guard to address this urgent need by purchasing new vessels and deploying them as quickly as possible to the Great Lakes. Congress should also mandate additional funding for this effort in the upcoming economic stimulus package."
2009년 1월 18일 일요일
2009년 1월 15일 목요일
News / January 16, 2009
Newbuilding orders may fall 40% in China
Newbuilding orders at Chinese shipyards will slump 40% this year derailing its efforts to become the world’s number one shipbuilder, a top Asian bank claims. Dwindling demand for bulk carriers following a crash in the sector’s earnings will account for the majority of the shortfall, BOC International says.
Cancellations at China State Shipbuilding Co, which has an orderbook dominated by bulk carriers, will also hit China’s market share, according to a note from the investment bank. China’s share of the shipbuilding market slipped to 36% in the first 10 months of 2008. A year earlier its slice was at 42%. Conversely, South Korea’s portion was lifted by nearly a tenth to 46% over the same timeframe. China has stated it wants to overtake South Korea as the dominant shipbuilder by 2015.
Big three’s investment in facilities goes on
Impression of Gunsan Shipyard of Hyundai Heavy Industries Despite global economic recession, South Korea’s major shipbuilding companies are planning to continue investment in shipyard facilities in 2009 for the improvement of productivity. Large shipbuilders with three to four year long order backlogs will continue to make massive investment in facility expansion this year following last year, seeking to ‘digest’ the heavy workload more smoothly. Samsung Heavy Industries plans to invest 800bn won ($579m) in shipyard facilities this year which is the same level to a year earlier. About 250bn won will be used for facility maintenance caused by depreciation and the rest will be invested in reclamation work, workshop and ship-block factory construction, etc. for the expansion of its Geoje Shipyard. With the aim of increasing shipbuilding output to 70 ships per year, Samsung is recovering land from the sea to form a site of 280,425㎡ off Geoje Shipyard and it is also planning to construct a block factory which would produce 100,000 tons of ship blocks per year once completed. Daewoo Shipbuilding & Marine Engineering plans to invest 500bn won to raise productivity. It will replace the 450t Goliath crane at its No.2 dock of which expansion work was completed in last November with a 900t Goliath crane. It will also add one more floating dock to existing three. Further, Daewoo will increase the number of its 3,600t floating cranes to two by introducing one more to largely boost productivity. It had invested just 190bn won in 2007 but it laid out 760bn won last year in the expansion work of the No.2 dock, etc. In case of Hyundai Heavy Industries, a firm business plan has not decided yet but grand scale projects are already under way such as the construction of the Gunsan Shipyard which would have the world’s longest dock (700 meters) and the world’s largest Goliath crane (1,600t) once completed, so a considerable amount of investment in facilities is expected this year as well. It had invested as much as 1.638trn won last year. An official at shipbuilding industry said, “Big three’s order backlogs stretch over more than three years and they need to enhance productivity. Unlike other industries, shipbuilding is forecast to keep investing in facilities this year too.”
Russian shipyard developing ice-class cargoships
Russian shipyard Krasnoye Sormovo is developing a new 7,600-dwt river-sea dry cargoship. The MNP-owned shipbuilder is teaming up with sister company Volga-Caspian Design Bureau to design the vessel, which will be able to carry hazardous cargo.
The ice-class ships will be classed by the Russian Maritime Register of Shipping. They will be 141.6 metres long with a 4.75 metre draft. The loaded speed will be 10.3 knots and the vessels will accommodate 12 crew.
Newbuilding orders at Chinese shipyards will slump 40% this year derailing its efforts to become the world’s number one shipbuilder, a top Asian bank claims. Dwindling demand for bulk carriers following a crash in the sector’s earnings will account for the majority of the shortfall, BOC International says.
Cancellations at China State Shipbuilding Co, which has an orderbook dominated by bulk carriers, will also hit China’s market share, according to a note from the investment bank. China’s share of the shipbuilding market slipped to 36% in the first 10 months of 2008. A year earlier its slice was at 42%. Conversely, South Korea’s portion was lifted by nearly a tenth to 46% over the same timeframe. China has stated it wants to overtake South Korea as the dominant shipbuilder by 2015.
Big three’s investment in facilities goes on
Impression of Gunsan Shipyard of Hyundai Heavy Industries Despite global economic recession, South Korea’s major shipbuilding companies are planning to continue investment in shipyard facilities in 2009 for the improvement of productivity. Large shipbuilders with three to four year long order backlogs will continue to make massive investment in facility expansion this year following last year, seeking to ‘digest’ the heavy workload more smoothly. Samsung Heavy Industries plans to invest 800bn won ($579m) in shipyard facilities this year which is the same level to a year earlier. About 250bn won will be used for facility maintenance caused by depreciation and the rest will be invested in reclamation work, workshop and ship-block factory construction, etc. for the expansion of its Geoje Shipyard. With the aim of increasing shipbuilding output to 70 ships per year, Samsung is recovering land from the sea to form a site of 280,425㎡ off Geoje Shipyard and it is also planning to construct a block factory which would produce 100,000 tons of ship blocks per year once completed. Daewoo Shipbuilding & Marine Engineering plans to invest 500bn won to raise productivity. It will replace the 450t Goliath crane at its No.2 dock of which expansion work was completed in last November with a 900t Goliath crane. It will also add one more floating dock to existing three. Further, Daewoo will increase the number of its 3,600t floating cranes to two by introducing one more to largely boost productivity. It had invested just 190bn won in 2007 but it laid out 760bn won last year in the expansion work of the No.2 dock, etc. In case of Hyundai Heavy Industries, a firm business plan has not decided yet but grand scale projects are already under way such as the construction of the Gunsan Shipyard which would have the world’s longest dock (700 meters) and the world’s largest Goliath crane (1,600t) once completed, so a considerable amount of investment in facilities is expected this year as well. It had invested as much as 1.638trn won last year. An official at shipbuilding industry said, “Big three’s order backlogs stretch over more than three years and they need to enhance productivity. Unlike other industries, shipbuilding is forecast to keep investing in facilities this year too.”
Russian shipyard developing ice-class cargoships
Russian shipyard Krasnoye Sormovo is developing a new 7,600-dwt river-sea dry cargoship. The MNP-owned shipbuilder is teaming up with sister company Volga-Caspian Design Bureau to design the vessel, which will be able to carry hazardous cargo.
The ice-class ships will be classed by the Russian Maritime Register of Shipping. They will be 141.6 metres long with a 4.75 metre draft. The loaded speed will be 10.3 knots and the vessels will accommodate 12 crew.
2009년 1월 13일 화요일
News / January 14, 2009
Green field shipyards in a fix
Newly-established small- and medium-sized shipbuilders in South Korea are being put into a dilemma. While the evaluation of troubled shipbuilders’ credit risk is under way led by financial industry,
s- & m-sized shipbuilders find it difficult to get back to their previous ship block manufacturing business due to the already purchased massive yard facilities and equipment. They also find it hard to continue shipbuilding business as managerial environment shows no sign of recovery. According to industry sources, the green field shipbuilders are now seeking ways to break the stalemate as it got more and more difficult to secure RG (refund guarantee) from banking agencies for the ships on their orderbook and new ship ordering activity got depressed worldwide. One option they consider the most positive is to return to ship block manufacturing business where they had enjoyed ‘good times’. Block building business would enable them to stably make profits by supplying the ship blocks to large shipbuilders as the major firms have got at least two to three year long order backlogs. Nevertheless, ‘returning’ is too late now because they have already invested a lot in shipyard facilities to make inroads into newbuilding business during the past couple of years. In order to go back to block manufacturing, they would have to dispose of those grand-scale yard facilities and equipment because building only ship blocks at a dock is absurd. But continuing shipbuilding business is far from easy as well because without RG, shipowners would not place order for newbuildings or would even cancel the orders that had already been made. Furthermore, even if the smaller shipyards lose newbuilding contracts by shipowner’s cancellation, they cannot announce the fact because it can cause a negative effect on the relationships with marine equipment suppliers and financial institutions. “Small and medium sized shipbuilders cannot get out of shipbuilding business now even if they want, nor can they stay in. They are just paying sharp attention to the policies of the government and financial industry,” said an official at shipbuilding industry.
Newly-established small- and medium-sized shipbuilders in South Korea are being put into a dilemma. While the evaluation of troubled shipbuilders’ credit risk is under way led by financial industry,
s- & m-sized shipbuilders find it difficult to get back to their previous ship block manufacturing business due to the already purchased massive yard facilities and equipment. They also find it hard to continue shipbuilding business as managerial environment shows no sign of recovery. According to industry sources, the green field shipbuilders are now seeking ways to break the stalemate as it got more and more difficult to secure RG (refund guarantee) from banking agencies for the ships on their orderbook and new ship ordering activity got depressed worldwide. One option they consider the most positive is to return to ship block manufacturing business where they had enjoyed ‘good times’. Block building business would enable them to stably make profits by supplying the ship blocks to large shipbuilders as the major firms have got at least two to three year long order backlogs. Nevertheless, ‘returning’ is too late now because they have already invested a lot in shipyard facilities to make inroads into newbuilding business during the past couple of years. In order to go back to block manufacturing, they would have to dispose of those grand-scale yard facilities and equipment because building only ship blocks at a dock is absurd. But continuing shipbuilding business is far from easy as well because without RG, shipowners would not place order for newbuildings or would even cancel the orders that had already been made. Furthermore, even if the smaller shipyards lose newbuilding contracts by shipowner’s cancellation, they cannot announce the fact because it can cause a negative effect on the relationships with marine equipment suppliers and financial institutions. “Small and medium sized shipbuilders cannot get out of shipbuilding business now even if they want, nor can they stay in. They are just paying sharp attention to the policies of the government and financial industry,” said an official at shipbuilding industry.
2009년 1월 11일 일요일
NEWS / January 12, 2009
Urging of review on restructuring
A governor in a South Korean province strongly opposed the plan of restructuring of small and medium sized shipbuilders, saying it is absolutely disadvantageous to the newly-built shipyards located at the province. On January 11th, Park Joon-yung, the governor of South Jeolla Province, situated in the southwest part of South Korea,
issued a statement on current restructuring process led by government and financial industry and said the reshuffling standards set by financial agencies are seriously unfavorable to the newly-established shipyards in the province and strongly urged reappraisal. He argued that restructuring of s- & m-sized shipbuilders should take place by analyzing the future potential of them, not by the logic of financial industry. South Jeolla Province stressed that s- & m-sized shipbuilding industry had been chosen as government’s strategic business in 2004 and it should be re-examined whether liquidating those smaller shipbuilders would be desirable at a time when they are about to start their business. Besides, the province announced that it is opposed to the ‘same standard’ restructuring on construction and shipbuilding industries as a whole because shipbuilding business provides a great deal of jobs and it is a large-scale export industry. The Korea Federation of Banks recently embarked on restructuring by setting appraisal criteria for ailing s- & m-sized shipbuilders such as ‘experience of newbuilding delivery’, ‘shipyard facilities’, ‘the rate of RG securement’, etc. The shipyards whose line of credit to a main creditor is over 5 billion won ($3.745 million) should have their credit risk evaluated. If restructuring is carried out according to the current standards, shipbuilding industry in South Jeolla Province where most of the shipbuilding companies are ‘green field’ shipyards would likely face forced restructuring. Of some 12 s- & m-sized shipbuilders in the province, some 10 companies would be categorized in the ‘restructuring group’ according to the current standards set by financial industry. Four of them have not delivered a single newbuilding yet, and seven are now constructing docks which are necessary for shipbuilding. It remains unclear, however, whether the province’s urging would be reflected in the current restructuring plan as government’s will for restructuring of shipbuilding and construction industries is so firm.
Hyundai to build new frigates
Hyundai Heavy Industries has been awarded a contract to build the lead ship of the South Korean Navys new 2,300 ton-class frigates to begin service in 2011, a military source said recently.
The Defense Acquisition Program Administration (DAPA) signed the contract worth about 140 billion won Dec. 26 with Hyundai, which had been in charge of the basic design of the state-of-the-art frigate codenamed FFX, said the source. FFX ships will replace the older Ulsan class frigates and Donghae/Pohang class corvettes by 2020, according to the Navy.The first six FFX ships are to be built by 2015 to replace the current nine Ulsan class frigates in service. The lead ship of the Ulsan class was commissioned in 1981.
Clarkson downgraded boxship market
Recently released data from Clarkson research institution revealed, despite the global financial crisis, the containership trading volume will still show growing tendency in 2009.However, it was warned that the massive volume of shipping capacity scheduled to be delivered in 2009 will cut the container ship rental price. Clarkson research institution again anticipated the growth of 2009 global container ship trading volume, and downgrade movement of the 2009 growth rate to about 6.7% when considered the global trading volume will still be affected by credit crunch. It is reported that the current biggest issue is the overcapacity from the massive order backlogs. The growth rate for the 2008 containership shipping capacity stood at 12.6% approximately, and 12.7% was expected for 2009. The difference between supply and demand is about 6% which will drop the freight rates of some major routes and container ship rental price.
A governor in a South Korean province strongly opposed the plan of restructuring of small and medium sized shipbuilders, saying it is absolutely disadvantageous to the newly-built shipyards located at the province. On January 11th, Park Joon-yung, the governor of South Jeolla Province, situated in the southwest part of South Korea,
issued a statement on current restructuring process led by government and financial industry and said the reshuffling standards set by financial agencies are seriously unfavorable to the newly-established shipyards in the province and strongly urged reappraisal. He argued that restructuring of s- & m-sized shipbuilders should take place by analyzing the future potential of them, not by the logic of financial industry. South Jeolla Province stressed that s- & m-sized shipbuilding industry had been chosen as government’s strategic business in 2004 and it should be re-examined whether liquidating those smaller shipbuilders would be desirable at a time when they are about to start their business. Besides, the province announced that it is opposed to the ‘same standard’ restructuring on construction and shipbuilding industries as a whole because shipbuilding business provides a great deal of jobs and it is a large-scale export industry. The Korea Federation of Banks recently embarked on restructuring by setting appraisal criteria for ailing s- & m-sized shipbuilders such as ‘experience of newbuilding delivery’, ‘shipyard facilities’, ‘the rate of RG securement’, etc. The shipyards whose line of credit to a main creditor is over 5 billion won ($3.745 million) should have their credit risk evaluated. If restructuring is carried out according to the current standards, shipbuilding industry in South Jeolla Province where most of the shipbuilding companies are ‘green field’ shipyards would likely face forced restructuring. Of some 12 s- & m-sized shipbuilders in the province, some 10 companies would be categorized in the ‘restructuring group’ according to the current standards set by financial industry. Four of them have not delivered a single newbuilding yet, and seven are now constructing docks which are necessary for shipbuilding. It remains unclear, however, whether the province’s urging would be reflected in the current restructuring plan as government’s will for restructuring of shipbuilding and construction industries is so firm.
Hyundai to build new frigates
Hyundai Heavy Industries has been awarded a contract to build the lead ship of the South Korean Navys new 2,300 ton-class frigates to begin service in 2011, a military source said recently.
The Defense Acquisition Program Administration (DAPA) signed the contract worth about 140 billion won Dec. 26 with Hyundai, which had been in charge of the basic design of the state-of-the-art frigate codenamed FFX, said the source. FFX ships will replace the older Ulsan class frigates and Donghae/Pohang class corvettes by 2020, according to the Navy.The first six FFX ships are to be built by 2015 to replace the current nine Ulsan class frigates in service. The lead ship of the Ulsan class was commissioned in 1981.
Clarkson downgraded boxship market
Recently released data from Clarkson research institution revealed, despite the global financial crisis, the containership trading volume will still show growing tendency in 2009.However, it was warned that the massive volume of shipping capacity scheduled to be delivered in 2009 will cut the container ship rental price. Clarkson research institution again anticipated the growth of 2009 global container ship trading volume, and downgrade movement of the 2009 growth rate to about 6.7% when considered the global trading volume will still be affected by credit crunch. It is reported that the current biggest issue is the overcapacity from the massive order backlogs. The growth rate for the 2008 containership shipping capacity stood at 12.6% approximately, and 12.7% was expected for 2009. The difference between supply and demand is about 6% which will drop the freight rates of some major routes and container ship rental price.
2009년 1월 6일 화요일
NEWS / January 7, 2009
Highest production amid slump
South Korean large shipbuilders are expected to deliver over 500 ships this year, the highest figure ever. According to Korea Shipbuilders’ Association (Koshipa), its nine member companies, which are major shipbuilders, have completed over 400 newbuildings last year and they would turn over more than 500 ships to shipowners for the first time in 2009.
The nine shipbuilders’ output accounts for 90% of the total ship production in Korea and they handed over a total of 407 vessels in 2008, up around 20% from 340 units in 2007. Last year, Hyundai Heavy Industries (HHI) delivered over 100 vessels for the first time. Other major shipbuilders such as Samsung Heavy Industries (SHI), Daewoo Shipbuilding & Marine Engineering (DSME), STX Shipbuilding and Hanjin Heavy Industries & Construction (HHIC), etc also have expanded their output. In 2009, the output growth rate is expected to increase with the nine shipbuilders planning to hand over 522 newbuildings, up around 30% against 2008. Newbuilding order boom since 2004 and shipbuilders’ expansion of building capacity contributed to the increase in shipbuilding output. As for HHI, its FPSO-exclusive dock is set to be completed within this month and its new yard Gunsan Shipyard is scheduled to launch the first ship in November this year. Also, SHI’s No. 3 floating dock starts operation this month and DSME has completed the expansion of its No. 2 dock in November last year. In 2009, HHI plans to deliver 119 ships (102 in 2008), SHI 63 ships (53 in 2008), DSME 75 ships (55 in 2008), HHIC 35 ships (20 in 2008). Hyundai Samho Heavy Industries aims to hand over 40 ships this year (35 in 2008) and Hyundai Mipo Dockyard 72 ships (70 in 2008).
Hyundai completes 102 vessels
World Top spot Hyundai Heavy Industries (HHI) announced that its newbuilding completions in 2008 reached a total of 102 units, up 22 ships from 2007. The record is a world first for any major shipyard. Since 1974, HHI has completed a total of 1,505 ships for 237 shipowners in 44 countries across the world. Cumulative totals for completion volume were 100 ships as of 1979, 200 as of 1983, 500 as of 1992 and 1,000 as of 2003. HHI expects to complete 119 ships in 2009. With HHI receiving no orders in both October and November, the company's total orders received for January-November 2008 stood at 110 ships aggregating 10.01 million grt and $13.6 billion in value, unchanged from the earlier reported performance for January-September 2008. The 110 ships consist of 37 tankers, 35 containerships, eight LPG carriers, 23 bulkers, two drillships, one special ship and four others. In its total order book, HHI now has a total of 362 ships of 31.3 million grt valued at $34.8 billion. The 362 ships consist of 114 tankers, 155 containerships, four LNG carriers, 30 LPG carriers, 38 bulkers, three drillships, 10 special ships and eight others.
South Korean large shipbuilders are expected to deliver over 500 ships this year, the highest figure ever. According to Korea Shipbuilders’ Association (Koshipa), its nine member companies, which are major shipbuilders, have completed over 400 newbuildings last year and they would turn over more than 500 ships to shipowners for the first time in 2009.
The nine shipbuilders’ output accounts for 90% of the total ship production in Korea and they handed over a total of 407 vessels in 2008, up around 20% from 340 units in 2007. Last year, Hyundai Heavy Industries (HHI) delivered over 100 vessels for the first time. Other major shipbuilders such as Samsung Heavy Industries (SHI), Daewoo Shipbuilding & Marine Engineering (DSME), STX Shipbuilding and Hanjin Heavy Industries & Construction (HHIC), etc also have expanded their output. In 2009, the output growth rate is expected to increase with the nine shipbuilders planning to hand over 522 newbuildings, up around 30% against 2008. Newbuilding order boom since 2004 and shipbuilders’ expansion of building capacity contributed to the increase in shipbuilding output. As for HHI, its FPSO-exclusive dock is set to be completed within this month and its new yard Gunsan Shipyard is scheduled to launch the first ship in November this year. Also, SHI’s No. 3 floating dock starts operation this month and DSME has completed the expansion of its No. 2 dock in November last year. In 2009, HHI plans to deliver 119 ships (102 in 2008), SHI 63 ships (53 in 2008), DSME 75 ships (55 in 2008), HHIC 35 ships (20 in 2008). Hyundai Samho Heavy Industries aims to hand over 40 ships this year (35 in 2008) and Hyundai Mipo Dockyard 72 ships (70 in 2008).
Hyundai completes 102 vessels
World Top spot Hyundai Heavy Industries (HHI) announced that its newbuilding completions in 2008 reached a total of 102 units, up 22 ships from 2007. The record is a world first for any major shipyard. Since 1974, HHI has completed a total of 1,505 ships for 237 shipowners in 44 countries across the world. Cumulative totals for completion volume were 100 ships as of 1979, 200 as of 1983, 500 as of 1992 and 1,000 as of 2003. HHI expects to complete 119 ships in 2009. With HHI receiving no orders in both October and November, the company's total orders received for January-November 2008 stood at 110 ships aggregating 10.01 million grt and $13.6 billion in value, unchanged from the earlier reported performance for January-September 2008. The 110 ships consist of 37 tankers, 35 containerships, eight LPG carriers, 23 bulkers, two drillships, one special ship and four others. In its total order book, HHI now has a total of 362 ships of 31.3 million grt valued at $34.8 billion. The 362 ships consist of 114 tankers, 155 containerships, four LNG carriers, 30 LPG carriers, 38 bulkers, three drillships, 10 special ships and eight others.
2009년 1월 5일 월요일
NEWS / January 6, 2009
“Innovation & Challenge”
While newbuilding order drought is expected to continue in 2009, chief executives of South Korean major shipbuilders selected “Innovation and Challenge” as the management key words of this year.
Although the market is showing a severe slump, CEOs plan to convert this crisis into an opportunity with the spirit of challenge peculiar to Korean enterprises, business process innovation, cost reduction and new technology development such as ice-class ships.
Hyundai Heavy Industries President Choi Kil-seon stressed that management innovation is what should be done first. He laid emphasis on three things: improvement of ‘high cost’ structure / preparing countermeasures against fluctuations in foreign exchange rates and raw material prices / refrainment from unnecessary investment and preoccupation of new business opportunity.
HHI Vice Chairman Min Keh-sik demanded inefficient business routines be innovated and said radical reform is required as profitability in all business sectors is expected to sharply deteriorate in 2009.
Samsung Heavy Industries, the only shipbuilder which over-achieved the self-set order target last year among major shipbuilders, advocates “Creative Innovation and Challenge” as its 2009 management slogan. It plans to focus on three tasks: cost reduction / new technology development such as ice-class ship and wind power generating equipment / client satisfaction through security and quality improvement.
SHI President Kim Jing-wan said cost reduction is the utmost priority and SHI needs to preserve the market share in offshore sector such as drillship and LNG-FPSO while making inroads into ‘future’ businesses.
Daewoo Shipbuilding & Marine Engineering, although the negotiations are having a hard going regarding the sale of a 50.4% stake in it to Hanwha Group, it plans to achieve KRW13trn (USD9.8bn) of revenue this year and set its 2009 order target at more than $10bn for the fourth consecutive year.
DSME also aims to gain a dominant position in drillship and FPSO sectors after it has already attained superiority in LNG carrier and VLCC markets and plans to develop new technology such as ice-class ships.
STX Group placed emphasis on ‘aggressive foreign market exploitation’ and ‘strengthening the growth potential’, advocating “Challenge” as its 2009 management key word.
STX Chairman Kang Duk-soo particularly highlighted four sectors: offshore plant business such as drillship and FPSO / LNG carrier construction and LNG shipment / industrial plants such as power plant and oil refinery / development of energy resources.
South Korean shipbuilders are now leading the world shipbuilding industry but in order to change the current crisis into an opportunity, they need to face the newbuilding order slump with daring strategies.
Meanwhile, shipbuilders have usually announced their order target at the beginning of a new year but no shipbuilder has revealed its aim yet except DSME this year. Despite “Innovation and Challenge”, shipbuilding industry is forecast to face rough going in 2009.
QBSHI started construction for cruiseship building base
Junuary 2, 2009, according to municipal government of Yinghai town in Jiaozhou city, the construction of cruiseship building base of Qingdao Beihai Shipbuilding Heavy Industry will begin officially in Yinghai town industrial park with a total investment of CNY 50m (about USD 6.25m).
It is reported that the construction of the base will be completed by August 2010, the 1st construction cite will be about 4,000 square meters.
It will mainly produce cruiseships and shipbuilding equipments, the annual output value will amount to CNY 100m (about USD12.5m).
The 2nd construction is scheduled to be completed by the 2010 year-end, the annual output value will total CNY 300m (about USD 37.5m).
When entering into operation after the completion of the construction of shipbuilding base, it will resolve the employment problem for about 400 people in the local area and the imaginable income and tax revenue will aggregate CNY 30m (about USD 3.75m).
Qingdao delivered three vessels in 5 days
Qingdao Shipyard delivered a vessel each to China Communications Construction Company, China Petroleum Ocean Enineering, and China Oilfield Services Limited within 5 days of 2008 year-end.
Qingdao Shipyard has been approaching harmonious development of old and new plant areas, production, construction, and relocation while carrying out its development strategy, ‘relocation, reshuffling, and collaboration’.
It will try to open up international market by mainly developing large and medium military vessels, marine engineering vessels, and special liquefied gas carriers with constructing a shipbuilding base for special ships.
While newbuilding order drought is expected to continue in 2009, chief executives of South Korean major shipbuilders selected “Innovation and Challenge” as the management key words of this year.
Although the market is showing a severe slump, CEOs plan to convert this crisis into an opportunity with the spirit of challenge peculiar to Korean enterprises, business process innovation, cost reduction and new technology development such as ice-class ships.
Hyundai Heavy Industries President Choi Kil-seon stressed that management innovation is what should be done first. He laid emphasis on three things: improvement of ‘high cost’ structure / preparing countermeasures against fluctuations in foreign exchange rates and raw material prices / refrainment from unnecessary investment and preoccupation of new business opportunity.
HHI Vice Chairman Min Keh-sik demanded inefficient business routines be innovated and said radical reform is required as profitability in all business sectors is expected to sharply deteriorate in 2009.
Samsung Heavy Industries, the only shipbuilder which over-achieved the self-set order target last year among major shipbuilders, advocates “Creative Innovation and Challenge” as its 2009 management slogan. It plans to focus on three tasks: cost reduction / new technology development such as ice-class ship and wind power generating equipment / client satisfaction through security and quality improvement.
SHI President Kim Jing-wan said cost reduction is the utmost priority and SHI needs to preserve the market share in offshore sector such as drillship and LNG-FPSO while making inroads into ‘future’ businesses.
Daewoo Shipbuilding & Marine Engineering, although the negotiations are having a hard going regarding the sale of a 50.4% stake in it to Hanwha Group, it plans to achieve KRW13trn (USD9.8bn) of revenue this year and set its 2009 order target at more than $10bn for the fourth consecutive year.
DSME also aims to gain a dominant position in drillship and FPSO sectors after it has already attained superiority in LNG carrier and VLCC markets and plans to develop new technology such as ice-class ships.
STX Group placed emphasis on ‘aggressive foreign market exploitation’ and ‘strengthening the growth potential’, advocating “Challenge” as its 2009 management key word.
STX Chairman Kang Duk-soo particularly highlighted four sectors: offshore plant business such as drillship and FPSO / LNG carrier construction and LNG shipment / industrial plants such as power plant and oil refinery / development of energy resources.
South Korean shipbuilders are now leading the world shipbuilding industry but in order to change the current crisis into an opportunity, they need to face the newbuilding order slump with daring strategies.
Meanwhile, shipbuilders have usually announced their order target at the beginning of a new year but no shipbuilder has revealed its aim yet except DSME this year. Despite “Innovation and Challenge”, shipbuilding industry is forecast to face rough going in 2009.
QBSHI started construction for cruiseship building base
Junuary 2, 2009, according to municipal government of Yinghai town in Jiaozhou city, the construction of cruiseship building base of Qingdao Beihai Shipbuilding Heavy Industry will begin officially in Yinghai town industrial park with a total investment of CNY 50m (about USD 6.25m).
It is reported that the construction of the base will be completed by August 2010, the 1st construction cite will be about 4,000 square meters.
It will mainly produce cruiseships and shipbuilding equipments, the annual output value will amount to CNY 100m (about USD12.5m).
The 2nd construction is scheduled to be completed by the 2010 year-end, the annual output value will total CNY 300m (about USD 37.5m).
When entering into operation after the completion of the construction of shipbuilding base, it will resolve the employment problem for about 400 people in the local area and the imaginable income and tax revenue will aggregate CNY 30m (about USD 3.75m).
Qingdao delivered three vessels in 5 days
Qingdao Shipyard delivered a vessel each to China Communications Construction Company, China Petroleum Ocean Enineering, and China Oilfield Services Limited within 5 days of 2008 year-end.
Qingdao Shipyard has been approaching harmonious development of old and new plant areas, production, construction, and relocation while carrying out its development strategy, ‘relocation, reshuffling, and collaboration’.
It will try to open up international market by mainly developing large and medium military vessels, marine engineering vessels, and special liquefied gas carriers with constructing a shipbuilding base for special ships.
2008년 12월 29일 월요일
NEWS / December 30, 2008
Hyundai, revenue rose 26%
Hyundai Heavy Industries has overcome a drop in ship orders as revenue jumped by a quarter in the first 11 months of 2008. The World’s largest shipbuilder says newbuilding contracts fell by 7.4% but higher prices pushed the value of deals up. Seoul-listed HHI booked orders worth $26.20bn between January and November 2008, up 12% on the figure recorded a year ago. Revenue for the period rose 26% to $14.07bn, with November sales up 44% to $1.70bn. Hyundai had failed to book a single newbuilding in October. Only construction equipment and electronics orders kept figures ticking over as HHI's orders plunged 57% year-on-year.
Argentina record order
Trans Ona is set to place an order Monday for a handysize tanker at Argentina's Rio Santiago Shipyard (ARS).
Rio Santiago Shipyard The compatriot tanker and towage player will sign a letter of intention for the 16,000-gt unit and an option for another, according to the Buenos Aires provincial government, which owns the yard. Details of the tanker order, including the price tag, have not been released. A call to the yard went unanswered Monday. The gross tonnage would make the vessels roughly 24,000 dwt. Provincial officials, including Governor Daniel Scioli, are scheduled to attend the signing for the deal as Trans Ona takes delivery of the tug "Ona Don Lorenzo" from ARS. Buenos Aires-based Trans Ona runs a fleet of eight tugs and owns one tanker, the 35,700-dwt Ona Tridente, which ARS built in 1997. ARS, which is located in the Buenos Aires suburb of Ensenada, builds both military and merchant vessels, including bulkers, tankers, boxships and offshore supply vessels.
Minors’ crisis deteriorating in China
Although Chinese shipbuilding industry’s order cancellation has not been aggravated yet, about whether the minor private shipbuilding forces will be well-preserved after a year or two remains of concern.A large number of small private shipbuilders have been established in coastal areas in China in recent years. Media report says, up to the first half of 2008, the number of registered shipyards in Zhejiang province aggregates about 200 and they are all private shipyards. It was mentioned that the total investment in 10 shipbuilding bases by Zhejiang province on the ‘Zhejiang province shipbuilding industry distribution plan’ in December 2006 should be CNY 10.1bn. According to the local media, there are 7 shipbuilding enterprises close to the Jiangsu Jingjiang coasts, whose 2007 shipbuilding completion stood at 2.5m-dwt, nearly the half of the total completion amounts of Jiangsu province, the shipbuilding industry’s sales income went beyond CNY 30bn. According to the development plan, 4 shipbuilders’ sales income will be exceeding CNY 10bn and the total production amount in shipbuilding industry will go beyond CNY 100bn by 2012. However, small private shipyards and state-owned ineffective large state-owned shipyards are facing a very big risk due to the financial crisis. The minor shipowners and shipbuilers on vessel loans are all at great risks. It is because although the order-backlogs for the newly-rising minor private shipyard are filled until the next year or the year after, the 70% cash for the vessel the Europe shipowners were funded by a number of banks in Europe. But, due to the collapse and reconstruction of the Europe’s financial system, whether shipowners m are able to perform the contract agreement will be a doubt. If the shipowners show poor contract performance capabilities, then the down payment paid to shipyards will be insufficient either, which means the orders are likely to be withdrawn, and the market downturn will lead their not signing a new contract. When a private enterprise have no sales income or show no capability to pay back the loans, it means that they are on the brink of bankruptcy. To resolve the minor private shipbuilders difficulties, vessel mortgage loan policy is being set up currently.
Hyundai Heavy Industries has overcome a drop in ship orders as revenue jumped by a quarter in the first 11 months of 2008. The World’s largest shipbuilder says newbuilding contracts fell by 7.4% but higher prices pushed the value of deals up. Seoul-listed HHI booked orders worth $26.20bn between January and November 2008, up 12% on the figure recorded a year ago. Revenue for the period rose 26% to $14.07bn, with November sales up 44% to $1.70bn. Hyundai had failed to book a single newbuilding in October. Only construction equipment and electronics orders kept figures ticking over as HHI's orders plunged 57% year-on-year.
Argentina record order
Trans Ona is set to place an order Monday for a handysize tanker at Argentina's Rio Santiago Shipyard (ARS).
Rio Santiago Shipyard The compatriot tanker and towage player will sign a letter of intention for the 16,000-gt unit and an option for another, according to the Buenos Aires provincial government, which owns the yard. Details of the tanker order, including the price tag, have not been released. A call to the yard went unanswered Monday. The gross tonnage would make the vessels roughly 24,000 dwt. Provincial officials, including Governor Daniel Scioli, are scheduled to attend the signing for the deal as Trans Ona takes delivery of the tug "Ona Don Lorenzo" from ARS. Buenos Aires-based Trans Ona runs a fleet of eight tugs and owns one tanker, the 35,700-dwt Ona Tridente, which ARS built in 1997. ARS, which is located in the Buenos Aires suburb of Ensenada, builds both military and merchant vessels, including bulkers, tankers, boxships and offshore supply vessels.
Minors’ crisis deteriorating in China
Although Chinese shipbuilding industry’s order cancellation has not been aggravated yet, about whether the minor private shipbuilding forces will be well-preserved after a year or two remains of concern.A large number of small private shipbuilders have been established in coastal areas in China in recent years. Media report says, up to the first half of 2008, the number of registered shipyards in Zhejiang province aggregates about 200 and they are all private shipyards. It was mentioned that the total investment in 10 shipbuilding bases by Zhejiang province on the ‘Zhejiang province shipbuilding industry distribution plan’ in December 2006 should be CNY 10.1bn. According to the local media, there are 7 shipbuilding enterprises close to the Jiangsu Jingjiang coasts, whose 2007 shipbuilding completion stood at 2.5m-dwt, nearly the half of the total completion amounts of Jiangsu province, the shipbuilding industry’s sales income went beyond CNY 30bn. According to the development plan, 4 shipbuilders’ sales income will be exceeding CNY 10bn and the total production amount in shipbuilding industry will go beyond CNY 100bn by 2012. However, small private shipyards and state-owned ineffective large state-owned shipyards are facing a very big risk due to the financial crisis. The minor shipowners and shipbuilers on vessel loans are all at great risks. It is because although the order-backlogs for the newly-rising minor private shipyard are filled until the next year or the year after, the 70% cash for the vessel the Europe shipowners were funded by a number of banks in Europe. But, due to the collapse and reconstruction of the Europe’s financial system, whether shipowners m are able to perform the contract agreement will be a doubt. If the shipowners show poor contract performance capabilities, then the down payment paid to shipyards will be insufficient either, which means the orders are likely to be withdrawn, and the market downturn will lead their not signing a new contract. When a private enterprise have no sales income or show no capability to pay back the loans, it means that they are on the brink of bankruptcy. To resolve the minor private shipbuilders difficulties, vessel mortgage loan policy is being set up currently.
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