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Shanghai Waigaoqiao focuses on operational efficiency

Shanghai Waigaoqiao focuses on operational efficiency
Shanghai Waigaoqiao Shipbuilding (SWS), a subsidiary of state-owned China State Shipbuilding Corp (CSSC), revealed that it has spent the first half of this year focusing on improving operational efficiency and boosting production at the yard, in a bid to raise its overall competitiveness and reliability, as it targets higher-value contracts.

The promotion of green energy technology, in particular, has allowed SWS to win more orders and meet the requests of an increasing number of owners requiring fuel-efficient tonnage, a spokesman was reported as saying.

The Chinese shipyard has incorporated eco-friendly features into the construction of 180,000-208,000 dwt dry bulk carriers and 300,000 dwt VLCCs, all of which boast fuel savings of up to 20%.

As at 30 June 2014, the share of SWS’s completed capesize bulkers and existing capesize orders accounted for 14.2% of the global market’s same segment, and that of the 300,000 dwt VLCC accounted for 9.1% of the global market share.

At the same time that the yard has reinforced its capabilities in building bulkers and tankers, SWS has also entered into the construction of the ultra-large 18,000 teu containerships and 83,000 cu m VLGCs.

The spokesman pointed out that although the newbuilding contract prices sought by SWS are typically higher than its domestic competitors by more than 5% on average, buyers have not been deterred from approaching the yard.

In the first half of 2014, SWS completed jobs on 20 vessels and one jack-up drilling rig with a combined capacity of 3.33m dwt. The jack-up rig of the JU-2000E design marks the first rig that is being built at SWS, and the yard has one more similar unit under construction.

SWS is now looking to expand its rig building orderbook based on the series of JU-2000E design, as it expects that demand for new rigs is set to continue due to the booming oil and gas market.

The SWS spokesman said that the management believes that the yard is on track to meet its 2014 full year performance targets amid stiff competition both locally and internationally.