NEWSLETTER October 2012Market News C DA S osco wins FPSOKorea National Oil Corporation (KNOC) has turned to China for a circular Floating Pro-OT Iduction Storage and Offloading unit (FPSO).Reports said the company’s UK subsidiary Dana Petroleum is the name on the con-2x Ytract at Cosco. The FPSO is valued at around $400m, with storage capacity of 400,000barrels. KNOC said it selected Cosco as no Korean yard had experience of building acircular unit, but at least one domestic builder is constructing such a vessel.Source: Trade winds, 15 October 2012 C hina Shipyard wins Multiple DA S Container Ship Orders OT I Ship operators Bernhard Schulte and US banking institution JP Morgan have 2x Y come together to order a series of me- dium-size box ships in China. Zhejiang Yangfan Group will construct up to eight 2,300 teu box ships for the pairin a four plus four option deal with deliveries scheduled in 2014 and 2015.Pricing is thought to be in the region of US$26.5-million per ship. Zhejiang Yangfan Group is the largest shipbuilding group in Zhejiang Province andthe scope of its business operation includes shipbuilding and marine outfitting.Source: Sinoship News, Monday, ctober 15, 2012
C hina Subsea Contract for Technip DA S Technip in a consortium with Offshore Oil Engineering Co. Ltd. (COOEC) wins aOT Isubstantial subsea contract in China.The contract, value 200 million (Technip share: around 110 million) was awarded by2x YChina National Offshore Oil Corporation (CNOOC) Deep water Development Ltd..It is for the South China Sea deep water gas development project in the Panyu field,located about 150 kilometres South of Hong Kong. The development consists in a new production system with six wells and its associ-ated control system tied up to a new central processing platform.The contract covers the supply and installation of a 10” and a 6” diameter clad-linedpipelines, of steel tube umbilicals*, and associated equipment. Offshore installation is scheduled to be completed in two phases during the thirdquarter of 2013 and the second quarter of 2014, using the Deep Orient, one ofTechnip’s deep water construction vessels, and the HYSY 201, COOEC’s pipelayvessel. Hallvard Hasselknippe, Chief Operating Officer of Technip Subsea Division, AsiaPacific stated: “This award represents a major step forward to reinforce Technip’sstrong presence in the emerging Chinese subsea market. We are delighted to haveCOOEC as our consortium partner to deliver this prestigious project to our key client,CNOOC.”Source: Maritime reporter and MarineNews magazines on-line,Monday, October 15, 2012
C DA SOT I2x Y angtze River Delta Shipbuilders Floundering China’s Ministry of Industry and Information Technology reports that orders in first half 2012 are down by 50.3 % year-on-year. The volume of handling orders was a mere 125.87 million DWT by the end of June, down 30.7 percent year-on-year, which can easily lead to the assumption that some shipbuilders will not be able to keep operating in the following months. “We have not received any new orders. If the situation continues, we will have only one ship to build in the second half of this year,” says Pan Haiwei, general man- ager of Wu Zhou Shipbuilding Industry Co., Ltd. in central Zhejiang. Shipbuilders in neighbouring Jiangsu province are also barely staying afloat. Zhang Yuyong, executive deputy general manager of New Century Shipbuilding Corp. in central Jiangsu, says the company had also not received any orders by August. “The orders we are handling now will be completed by April or May next year. But my pre- diction is that the shipbuilding market will not pick up until 2015,” Zhang says. “Meanwhile, the profits of shipbuilding are much reduced. A 80,000-ton bulk carrier, for example, was priced at $34 million (28 million Euro) in 2010, but the price now is merely $23 million. That 30 percent profit is almost gone now,” he says. “Of course there are shipbuilders fighting for orders. But the profits are so small that it is like chewing bones for us. Some private shipbuilding companies that have found trouble keeping their cash flow healthy definitely desire new orders. But for us, we can make it even if we are out of any new orders.” “For the low-end shipbuilding companies, the historic low in the shipping mar- ket will pose much threat to them. But for companies specializing in high-end ocean engineering, the lull means nothing,” he says. C DA S Source: China Daily, Friday, August 17, 2012 OT Irder situation in China and Japan 2x Y China’s new orders drop nearly 47% CHINA’S yard sector is continuing to shrink, according to the industry ministry. 23 Oct Japanese yard orders surge 272.5% JAPAN’s shipbuilding orders rose 272.5% year on year in September, thanks to more contracts with compatriot shipowners. 23 Oct
Our On-Going Projects Projects at Shanghai Zhenhua Heavy Industry(ZPMC): 2 X Cable Laying Vessels for BOSKALIS-SMIT are still under construction. Alphatron’s navigation equipment delivered at the warehouse. Engineers from ZPMC and BAKKER SLIEDRECHT are checking the delivered equipment from BAKKER.Block sections erected on a floating pontoon.
Orders We Booked Recently• Assisting the customers of SDT INTERNATIONAL (e.g. TTS Marine Shanghai) to purchase conventional parts and support customers for product calibration.• Assisting JAN DE NUL to purchase the Chinese domestic conventional ship spare parts, such as valves and hydraulic pump.Our Follow-up Projects• Offshore Ship Design (OSD) delivered the basic design for 32 m and 50 m Tugs to Wuxi Shipyard. The owner is POET Singapore. The CARICH team is busy with contacting the owner now.• Wuhan Jiangbei Shipyard signed a contract to build a 500 m3 self- propelled split hopper barge with Yangtze River Waterway Administration on August 31 this year. The vessel was designed by Wuhan Jinding Marine Engineering Design. The CARICH team is busy with contacting the shipyard for RDM SMEERTECHNIEK grease pumps, INA Bearings and ERIKS seals now.• Several Platform Supply Vessels (PSV) projects of 60 m, 75 m and 83 m have been designed by OSD for Fujian Dong Nan Shipyard and another shipyard located in South of China. All the purchases for these projects are handled by Sun Ocean Marine. Our principals ALPHATRON MARINE and VETH PROPULSION are preparing the technical proposals and quotations.• Our product “Vibracon” from SKF MACHINE SUPPORT is highly recognized by CNR Dalian Locomotive Rolling Stock Company. Our offer is waiting for approval.
• Afai Southern Shipyards (Panyu Guangzhou) are now requested to build two water taxi catamaran ferries for a Dutch owner; the design company is Cocoyachts from Holland. Our principal VETH PROPULSION has already offered their proposal and quotation. We are still waiting for the result.• Axis Offshore has ordered a semi-submersible accommodation vessel satisfying the stringent North Sea operating requirements. The unit will be delivered in the first quarter of 2015. Axis Offshore has selected Global Maritime’S GM500A design. It will be built by COSCO Qidong Offshore which has a strong track record of building similar units. The contract with COSCO includes options for two more units, valid for 12 months and 24 months respectively.• The CARICH team keeps close contact with Dalian Shipyard Offshore Division for the project of ocean 500 which is a semi-submersible platform. The owner is OSM Group, a Norwegian company.• We just got the news that on 18th September, Dalian Shipyard Offshore Division signed the official building contract with NORSHORE for building up a drilling vessel. We are trying to learn more about this project.• Several Chinese shipyards are bidding for a 5000m3 cutter dredger for China Railway Construction Harbour Channel Engineering Bureau Group. We learned that Wenchong shipyard will most probably win this order. This vessel is designed by Shanghai Jiaotong University Design Research Institute of Ship and Ocean Engineering. We are trying to convince them to purchase our equipments.• The CARICH team keeps also close contact with Wison (Nantong) Heavy Industry for project EXMAR FLRSU. The Project Engineering Manager Sun Yingtao (Tom Sun) and Coating Engineer Liu Shulian are our main contact persons. According to owner’s technical specification, the ECOSPEED paint has to be applied.• Besides these projects, right now we are also focusing on a Chinese Polar Research Vessel. We have already got contact with the design company and have introduced some principals’ products to them.
C DA S Build its First Polar Research Vessel Chinese toOT I he world’s move north to the Arctic for the exploration of energy resources has attracted global attention of Arctic and non-Arctic states. The newest player: China, which last month announced its plan to design and build its2x Y first ever Polar Research Vessel. The plan has been organized by State Oceanic Administration (SOA), China, Chinese Arctic and Antarctic Administration (CAA) and the Polar Research Institute of China (PRIC) to build a new ice breaking research vessel to meet the country’s increased need of polar scientific research. As would be expected, the new vessel will be equipped with advanced scientific equipment for polar oceans research, an integrated survey systems including marine geological and geophysical equipment, marine biological and ecological instruments. For the integrated environmental science programs the vessel will have marine and atmos- pheric observing and sampling capabilities closely related with climate change monitoring. The ma- rine geological and geophysical capabilities will give possibilities for seasonal polar marine geol- ogy, marine gravity, magnetic and seismic surveys. For marine biological and ecological programs the vessel will enable marine organism and ecological surveys and acts as a biological research platform. The vessel may be used also for the Antarctic station supplies lo- gistic tasks undertaking some of M/V Xuelong’s mission especially in the heavy sea ice condition. To design the new ship China has turned to Finnish Arctic powerhouse Aker Arctic, an organization with a long and successful record in designs for the harsh Arctic environment. Aker Arctic will perform the conceptual and basic design of the new Polar Research Vessel. The value of the signed contract for Aker Arctic is more than $5m.
“After sustained effort, the State Oceanic Administration (SOA) and the AkerArctic Technology Inc., agree with all the basic design requirements of the new PolarResearch Vessel of China and sign the contract,” said Qu Tanzhou, DirectorGeneral, Chinese Arctic and Antarctic Administration of State Oceanic Administra-tion. “As the first polar scientific research icebreaker for China, its successful designand build will not only push forward our polar scientific research career by achievingmore successes, but also will make great development on Chinese ship constructionindustry.” The polar research icebreaker for China will be designed to accommodatea total of 90 persons and will have a length overall of about 120 m, a maximumbreadth of 22.3 m and draft of 8.5 m. The vessel will have the ability to breakthrough 1.5 m of level ice at 2 to 3 knots speed, including multi-year ice. The vesselwill be fitted with twin azimuth propeller drives. Ice class will be PC3 and the vesselwill have dual classification from China Classification Society (CCS) and Lloyds Regis-ter of Shipping (LR).The design time is expected to take seven months to complete.Source: MarineLink.com, Sunday, August 05, 2012 During the SMM in Hamburg Germany at BAKKER’s stand, the CARICH teamintroduced Kari Laukia from Aker Arctic which is in charge for the design of the firstChinese Polar Research Vessel. Moreover BAKKER took the chance to introduce theirproducts and services to him. Kari Laukia showed a great interest in the presentation ofBAKKER. After the trade fair BAKKER has already got inquiry from Aker Arctic for this Chi-nese Polar Research Vessel. CARICH introduced also ALPHATRON MARINE, MASCHINEN-FABRIK BRÖHL and ECOSPEED to the design company and the Owners.Monica Fu and Amedee Van De Vijver from CARICH and Kari Laukia from Aker Arcticwere listening to Business Development Manager Arie Boer from BAKKER
Some other activities On the 5th and 6th September 2012, the Carich team visited the Shipbuilding, Machinery and Marine technology international trade fair (SMM) in Hamburg Ger- many. As usual, the CARICH team paid visits to different principals’ stands which include BAKKER SLIE- DRECHT ELECTRO INDUSTRY, VETH PROPULSION, SDT INTERNATIONAL, ALPHATRON MARINE, LOGGERS, WORTELBOER, SUBSEA INDUSTRIES and MACHINE SUPPORT. During the visits, the team members exchanged market and project information with the prin- cipals and learned about the new products which were presented at the stands. Amedee Van De Vijver had a meeting with a Chinese private dredging com-pany in Belgium and the CARICH team is going to make a visit to them againat the end of this October for discussing further cooperation in China. On September 31, Amedee Van De Vijver has organized for a delegation ofChina Shipping Industry (Shanghai Pudong) (CIC Shipyards), a visit toseveral Belgian ship-owners and management companies. Both parties alsodiscussed further cooperation opportunities.
UW (Under Water) Air-filled Submersible Motors Jiangsu Haihong Construction Engineering (Ship Owner) made the FAT on AEM- Anhaltische Elektromotorenwerk Dessau GmbH and visited BAKKER SLIEDRECHT ELECTRO INDUSTRY during July 17 to 24. The CARICH team gave full support to this visit which is highly appreciated by Jiangsu Haihong. Reference List Shipyard Owner Ship Description Commodity Description Quantity Status1 Tianjin Xinhe Shipyard Qingdao Beiya Construction Co., Ltd., 4500m3 Cutter Suction Dredger TH630 M6 1200 kw/3x690V/1000rpm 2 sets Delivered2 Tianjin Xinhe Shipyard Qingdao Beiya Construction Co., Ltd., 4500m3 Cutter Suction Dredger TH630 M4 1650kw/3x690V/1500rpm 2 sets Delivered3 Jiangsu Haixin Ship 4500m3 Cutter Suction Dredger Heavy Industry Co., Ltd Jiangsu Haihong Construction Co., Ltd., (belongs to Haihong) TH 630 L6 1400KW/3X690V/1000rpm 2 sets Delivered4 Jiangsu Haixin Ship 4500m3 Cutter Suction Dredger Heavy Industry Co., Ltd Jiangsu Haihong Construction Co., Ltd., (belongs to Haihong) TH 630 L6 1400KW/3X690V/1000rpm 2 sets Delivered5 Nanjing Cutter Suciton Dredger High Accurate Marine Equipment Co.,Ltd Nanjing High Acc. Mar.Equipm. Co., Ltd., TMU-225/4-290 15KW/3X400V 2 sets Delivered6 Nanjing Cutter Suciton Dredger High Accurate Marine Equipment Co.,LTd Nanjing High Acc. Mar.Equipm. Co., Ltd., TMU-225/4-290 15KW/3X400V 2 sets Delivered7 Guangzhou Wenchong Shipping 5000m3 Cutter Suction Dredger China Railway Construction Co., Ltd., 1200kw/3x660V/1000rpm 4 sets Pending 10
Visits to Shipyards Ouhua shipbuildingIn July, CARICH team visited Ouhua Shipyard for discussing the specification of doorsand windows for a Supper Heavy Lift Vessel. NAVAL SUPPLIERS (HET ANKER) hasmade a quotation for Ouhua shipyard. Owner Spliethoff (The Netherlands). Dalian Shipbuilding IndustryIn August, CARICH team made a regular visit to Dalian Shipbuilding Industry andexchanged some market information. ZPMC shipyard:In the beginning of July, during the stay of Van de Vijver in China, the Carich teamvisited the shipyard of Shanghai Zhenhua Heavy Industry (ZPMC) on Changxing Is-land, where the 2 cable laying vessels from BOSKALIS, division SMIT are being con-structed. At that moment, CARICH team saw the bloc section’s construction of thefirst vessel and in the storehouse Carich team checked also with ZPMC aboutthe delivered goods from BAKKER. 11
At the end of July and at the beginning of August, CARICH team paid a visit again to ZPMC shipyard, during this visit, CARICH team had chance to join the meet- ing in which representatives of BAKKER, SMIT, OSD and ZPMC were present. During this meeting several technical issues were discussed, and after the meeting, some additional orders have been placed by ZPMC to BAKKER. Visits to principals and ship-owners In the beginning of September, CARICH made visits to BAKKER SLIEDRECHT, VETH PROPULSION, RDM SMEERTECHNIEK and JAN DE NUL GROUP in Holland and Belgium. During the visits, the CARICH team had meeting with J. Noorlander BSc from BAKKER to speak about several issues with regard to the on-going projects which are at ZPMC shipyard. During the meeting with RDM, we learned about the changes in their partnership with Demeyer. We visited also the warehouse and workshop of VETH and had meeting with JDN to see if there would be new vessel which is planned to be built in China again in short term. Later on CARICH team had also a meeting with representatives from MASCHINENFABRIK BRÖHL in Hamburg to discuss several issues for the OSM Group’s semi- submersible platform (Ocean 500).ऀ 2013 Holiday Arrangement in China In China the longest National Holiday (8 days) is just finished. In order to let you have an overview for the coming official holidays in China, we show here a draft of the holiday arrangement for 2013, which is waiting for the approval by the State Council of China. The final version will be announced by the end of this year.New Year * December 30, 2012 - January 1 (three days in total) * December 29, 2012 (Saturday) is an official working daySpring Festival * February 9 - 15 (seven days in total) * February 16 (Saturday) and February 17 (Sunday) are official working daysTomb * April 4 - 6 (three days in total)Sweeping Day * April 7 (Sunday) is an official working dayLabor Day * April 29 - May 1 (three days in total) * April 27 (Saturday) and April 28 (Sunday) are official working daysDragon Boat * June 10 - 12 (three days in total)Festival * June 8 (Saturday) and June 9 (Sunday) are official working daysMid-Autumn * September 19 - 21 (three days in total)Festival * September 22 (Sunday) is an official working dayNational Day * October 1 - 7 (seven days in total) * September 28 (Saturday) and September 29 (Sunday) are official working days 12
Ecospeed on China Market In the past 3 months, the rudders and the bow thruster tunnels of container vessels and reefer /car carrier (RCC), owned by several different owners, were coated with ECOSPEED at shipyards in China. (please see the example list as below). The rudders and bow thruster tunnels of these vessels are given lasting protection by ECOSPEED against cavitations for the remainder of their sailing life.Vessel CMA CGM SwordfishOwner CMA CGM GroupCustomer CGM GroupApplicator/Shipyard CIC Shanghai Changxing ShipyardLocation Changxing Island, Shanghai, ChinaVessel CMA CGM Blue WhaleOwner CMA CGM GroupCustomer CMA CGMz GroupApplicator/Shipyard Yiu Lian Shipyard in Hong KongLocation 1-7Sai Tso Wan Road，Tsing Yi IsIand，Hong KongVessel CSCL DalianOwnerCustomer Seaspan Ship Management Ltd. VancouverApplicator/Shipyard CIC Shanghai Changxing shipyardLocation Changxing Island, Shanghai, ChinaVessel M/V Kota LayarOwner PILCustomer PILApplicator/Shipyard HRDD ShipyardLocation Chongming Island, ShanghaiVessel Norgas CarineOwner Customer Norgas Carriers Private LimitedApplicator/Shipyard HRDD ShanghaiLocation Chongming Island, Shanghai, China 13
This summer, Tianjin Xinhe Shipyard delivered the 28th engineer-ing vessel to Jan De Nul. These 9 years’ cooperation between the Ship-yard, the Owner and all our equipment suppliers meant a lot for CARICH.All people who have been involved in the building these vessels stillremember the good times they spent together. For this edition of ourNewsletter we had 2 short interviews with people who worked for theseprojects. We hope the suggestions from these interviewees may be use-ful for all parties involved. He Jingang from Tianjin Xinhe ShipyardQ: As I know, you were working at the business department when the shipyardbuilt the first vessel for Jan De Nul and then you were transferred tothe purchase department and now you are back in business department andworking as the manager of the business department. Could you share with usyour feeling about the cooperation with Jan De Nul ?A: Frankly speaking, Jan De Nul is a very strong, rich and kind company whichis the top dredging company in the World. Through 9 years’ cooperationwith JDN, we deeply think it is very lucky to have chance to cooperate with thiscompany. Every time when the shipyard met problem, JDN always tried theirbest to help the yard solve the problems, not only onsite, but also technicalways and etc, we sincerely hope to continue the cooperation with JDNin the future.Q: After 9 years’ cooperation with JDN, what does the shipyard change the mostcompare to 9 years ago ?A: From 2003 till now, after 9 nine years’cooperation with JDN, the shipyardbenefited much from JDN. Our shipyard has improved a lot; we don’t only speakabout the shipbuilding quality, but also the English language level has beenimproved a lot.Q: On which aspects do you think the shipyard needs to improve in the future ?A: I think that our shipyard needs to continue improve shipbuilding quality andafter-sale-service level in the future, because quality is an enterprise’s life. 15
David Ding Owner’s surveyor Q: How many years have you been working for JDN? For which vessels were you busy at Xinhe shipyard? A: Four years, for the workboats “Multicat”Q: What’s your advice to the Chinese shipyard and how to improve the project management?A: This is really a big issue. At least I have following suggestions:1. The design department has to make all drawings more practical. Drawings need to be updated on time during the building process in order to avoid the same mistakes happen to the sister ships.2. The Shipbuilding Project Manager is one of the most important persons during the building. He should have sufficient experience, have a general overview of the procedures, be able to manage the process/manpower/equipment, etc..3. The foremen of every workshop need to give sufficient support and have to cooperate with each other in a good organization lead by the project manager.4. The follow-up and communication by the quality department need to be im- proved.5. The Purchase Department needs to keep close contact with all suppliers and be familiar with the delivery status of each item. Delay needs to be foreseen and always keep the shipbuilding manager informed in advance. Ir. Walter Dietens of JDN at launching ceremony of the first vessel “l’Aigle” March 24th., 2005 16
6. The Business Department should collect all the feedback from TD, crews as well as class surveyor and should communicate with yard people in time. Communication is very important. 7. A new building with good quality and short delivery time only could be expected when yard, class surveyor and ship owner have good cooperation. Q: As you know, we are also agent of some European marine equipment suppliers such as BAKKER, VETH, RDM, BROEHL and etc. Could you give us some advices how these foreign compa- nies can work more effectively with the Chinese shipyard and foreign Ship owners ? A: One local engineer with technical back- ground, good commu- nication capacity and positive attitude will be very helpful I believe. He (or she) should not only think from supplier’s/agent’s side, but also think from yard’s/ship-owner’s view.CARICH MARINE ENGINEERING (HK) CO., Ltd. 联系地址：Room 1729 Changjiang Plaza 大连市中山区长江路123号长江写字楼1729房间No. 123 Changjiang Road 邮政编码：116001Zhongshan District Dalian 116001 P.R. China 电话：+86 411 82529217Tel: +86 411 8252 9217 传真：+86 411 82529237Fax: +86 411 8252 9237 电子邮件：email@example.comE-mail: firstname.lastname@example.orgWebsite: www.carich.cn 网址：www.carich.cnCARICH CONSULTANCY TRADING (HK) CO., Ltd. 凯瑞咨询贸易（香港）有限公司Room 3202, Huaneng Union Tower 地址：上海浦东银城东路139号华能联合大厦605室N° 958 Lujiazui Ring Road PudongShanghai 200120P.R. China 17