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Marine Industries- China

Marine Industries

Overview

Billions USD

x	2004	2005	2006 (Estimated)
Total Market Size	58.0	77.2	79.5
Total Local Production*	60.0	81.4	86.4
Total Exports **	3.1	4.7	7.4
Total Imports **	1.1	0.5	0.5
Imports from the U.S. **	45.2	15.0	5.3

Source of data: * News Service Centers of Ministry of Commerce of People’s Republic of China

**China Customs (HS code: 89 Ships and boats and floating structures.)

This section covers the use and development of the various sea-related industries, including shipbuilding, port, pleasure boat, sea communications and transportation, offshore oil and gas, sea-related chemicals and sea fisheries, etc.

China has seen rapid development of its marine industry over past few years. China has more than 3 million square kilometers of sea areas, with more than 1,400 harbors and 210,000 cargo ships. According to the “National Marine Economy Development Program” issued by the state council, the value of increase of sea-related industries constituted approximately 4% of GDP by 2005; and the aggregate marine industries will gradually become one of the pillar industries of China’s economy.

According to China Customs statistics , China’s total ship import and export values reached USD5.2 billion in 2005, of which ship import accounted for USD0.5 billion. Trade volume would rise to a historic high of USD 7.9billion in 2006. However, oceanic pollution and the industry's structural imbalances continue to present challenges for the development of the marine industry.

Opportunities

Best prospects in China’s marine industries include shipbuilding, pleasure boat, and port related accessories and sea transportation.

Shipbuilding

Since 1999, the output of China's shipbuilding industry has been ranked number three in the world. According to the statistics from the China Association of the National Shipbuilding Industry (CANSI), China's shipbuilding output exceeded 12 million deadweight tonnage (DWT) in 2005, accounting for 18 percent of world’s total. The output is expected to reach a historical high of 14 million DWT in 2006. Chinese shipyards filled about 20 percent of global orders for ships measured by cargo capacity. Shanghai Waigaoqiao Shipbuilding Co, the country's top shipbuilder, churned out 3.11 million DWT of ships in 2006, making it the world's eighth-largest shipyard.

According to the government’s National Medium and Long-Term Plan of the Shipbuilding Industry, issued in August 2006, China’s shipbuilding industry is expected to hit capacity of 17million DWT by 2010 and would become the No. 1 shipbuilding power in the world by 2015.

The central government’s 11th five-year plan (2005 to 2010) pointed out that the key to strengthening the shipping industry lies in design capability, marine equipment supply, large-scale shipbuilding construction, and optimizing the three main ship types: bulk-carriers, oil tankers, and container vessels. Emphasis will be put on hi-tech ships, new ship designs and ocean engineering equipment, which have additional added value.

China urgently needs hi-technology, machinery and management for the shipbuilding industry. The best prospects for shipbuilding are raw materials, coating equipment and coating materials, CAD (Computer aided design) software and associated technology for ship design and construction, equipment maintenance, high-tech equipment such as GPS, navigation and on board computer systems, cutting and welding technology and related equipment.

Pleasure Boats

With the rapid growth of the economy, China's recreational marine market is forecast to expand sharply in the coming years. Based on the confidence that pleasure boats will become a part of life style in the country’s expanding wealthy and the middle-class, provincial governments, property developers and boat builders are all investing heavily in this industry. Business experts estimated that the market would pick up speed after 2005, and the overall market size would reach USD10billion over the next decade, which presents significant opportunities for the exports of U.S. pleasure boats, accessories, marina planning and construction materials.

Port and Sea-Transportation

China is allocating a massive amount of money to the port and waterway construction to meet the significant growth of freight volume. Since 2004, China has stepped up the infrastructure construction of ports. China's port throughput is increasing at exponential rates, reflecting a booming foreign trade. According to the Ministry of Communications (MOC), freight turnover at major coastal ports rose 19% in 2005 to 2.9 billion tons. Container traffic at Chinese ports also increased 23% to 75.6 million Twenty-foot Equivalent Units (TEUs). Double-digit growth continued in 2006 and was projected to expand to 130m TEUs by 2010. The cargo turnover of Shanghai port exceeded 500 million tons in 2006, making it the world's busiest port for the second consecutive year. Eight ports in mainland China, namely Shanghai, Shenzhen, Qingdao, Tianjin, Guangzhou, Xiamen, Ningbo and Dalian, are included among the 30 top container harbors in the world.

To facilitate global trade, most ports in China are putting emphasis on expanding the capacity and upgrading the port facilities as well as the modernization of operations. The products and technologies in high demand are Vessel Traffic Management Information System, laser-docking systems, terminal tractors, dredging equipments and security equipment for the ports and vessels to abide by the International Ship and Port Security Code (ISPS).

Shipbuilding bases

According to the shipbuilding industry report issued by the state council, China is embarking on major efforts to increase shipbuilding capacity. The country plans to build three major shipbuilding bases in the Bohai Rim, East China Sea and South China Sea. The China State Shipbuilding Corporation (CSSC), the country's leading shipyard began construction on the Changxing Shipbuilding Base on the Shanghai coast in 2003. When completed in 2015, the Changxing base will be the largest shipyard in the world with annual shipbuilding capacity reaching eight million tons. Additionally, CSSC plans to build China’s largest yacht building base in the Fengxian district of Shanghai.

Marina development

Although there are presently only a handful of marinas in China, dozens more are under construction or in planning. Many luxury residences in major cities incorporate waterways and boating facilities in their developments.

The Shanghai municipal government is in the process of announcing plans for the city’s yachting industry development over the next two decades. The success of Shanghai's bid to host the 2010 World Expo will push the boat industry to develop more rapidly. The Shanghai Government has decided to build marinas and cruising shipping centers along the downtown river as part of the efforts to remake Shanghai into a world-class city.

Other cities and areas that either have on-going marina projects, or in the planning process include Zhoushan, Qingdao ,Dalian, Ningbo, Beihai, Dongguan, Shengzhen and Hainan Island.

Deepwater Port

China is building more deep-water berths to handle the larger fifth and sixth generation container vessels. The largest project is the construction of Yangshan deep-water port, approximately 20 miles offshore from Shanghai and linked to the mainland by a 32.5-kilometre causeway bridge. The first phase was completed and put into operation at the end of 2005, including 5 new berths and a capacity of 2 million TEUs per year. A second phase opened in December 2006, adding four berths on a 1.4-kilometer waterfront with a designed handling capacity of 2.1 million TEUs annually. The original plan is to complete 50 berths by 2020, which will cost over USD10billion. The master plan also includes a logistics park and new harbor city on the mainland.

Resources

Major shows

China International Boat Show 2007

(Incorporating: China Fast Ferry & Commercial Craft Show)

DATE: 5--8 April 2007

VENUE: Shanghai Exhibition Centre

Organizer: Shanghai CMPsinoexpo International Exhibition Co., Ltd.

Tel: +86 21 64371178

Fax: +86 21 64370982

E-mail: helenagao@N0SPAM.cmpsinoexpo.com or Angelahe@N0SPAM.cmpsinoexpo.com

Web Site: http://www.cmpsinoexpo.com/boat/

Marintec China 2007- the all China Maritime Conference & Exhibition