- China’s shipbuilding industry is thriving, surpassing global competitors in contracting, orders, and deliveries.
- Achievements include breakthroughs in constructing complex vessels like large cruise ships, LNG carriers, and Very Large Gas Carriers.
- Major players are leading in technological advancements and production efficiency. Despite securing nearly 58% of global ship orders, experts believe China is still in the early stages of establishing itself as a recognized global shipbuilding power.
To navigate future challenges, emphasis is placed on continuous research and development, talent cultivation, efficient management, and adaptability to market needs, reports China Daily.
Deliveries from Chinese constructors account for half the global total
China’s first large cruise ship, Adora Magic City, recently embarked on its inaugural journey from Shanghai to destinations in Northeast Asia. This achievement positions China alongside Italy, France, Germany, and Finland in independently designing and constructing cruise ships. Notably, China is the only nation proficient in building an aircraft carrier, a large liquefied natural gas carrier, and a large cruise ship.
This milestone signifies China’s shipbuilding industry’s capability to develop its cruise industry chain. Experts anticipate China’s cruise economy to reach ¥500 billion ($71 billion) by 2035. Xing Yue of Clarksons Research notes that China State Shipbuilding Corp (CSSC) and Shanghai Waigaoqiao Shipbuilding Co’s development of Adora Magic City challenges the European shipyards’ dominance in this sector.
Chen Gang, general manager of Shanghai Waigaoqiao Shipbuilding Co, considers constructing a cruise ship as the pinnacle of the shipbuilding industry, reflecting a nation’s scientific and technological prowess. The Adora Magic City project, initiated in October 2013, involved 2.3 million man-hours in design and 18 million man-hours in construction.
The 323.6-meter-long, 37.2-meter-wide vessel accommodates 5,246 travelers in 2,125 cabins, featuring a 40,000-square-meter public area. Chen, the chief designer, emphasizes the project’s immense scale, with the ship containing 55,000 sets of equipment, 25 million components, and 4,750 kilometers of cables.
Niklas Peterstam, the captain, expresses high expectations for the vessel, offering a unique maritime experience. Adora Magic City also features a 2,000-square-meter duty-free retail space, the largest in Chinese waters, in partnership with China Duty-Free Group. Captain Peterstam and his diverse crew have undergone trials and voyages to ensure the ship’s readiness for passengers, anticipating its popularity among Chinese families.
Thorough checks
Shanghai Maritime University’s Logistics Research Center Director, Lin Guolong, highlighted that cruise ships typically undergo two sea trials, focusing on technical indicators and safety, comfort, and emergency response capabilities, before receiving certificates from international classification bodies. Zhang Yuzhuo, Chairman of the State-owned Assets Supervision and Administration Commission, sees Adora Magic City’s delivery as a milestone in China’s shipbuilding power and a start for creating an industrial cruise ecosystem.
Wang Hong, President of the China Europe International Business School, emphasized the significance of the China-built vessel’s inaugural voyage as a breakthrough in high-end manufacturing and meeting Chinese people’s demand for a better life. The vessel, Adora Magic City, is seen as a massive amusement park and mobile resort, expected to become a new growth engine for consumption and the Chinese economy.
Clarksons, a leading shipping services provider, remains optimistic about the long-term outlook for the cruise market, predicting over 40 million passengers by 2028. Despite the challenges posed by the COVID-19 pandemic, the report emphasizes the importance of China’s consumer cruise market in the sector’s development.
China became the world’s second-largest cruise market by the end of 2019, with an economic contribution of 14 billion yuan from international cruise companies. Shanghai Waigaoqiao Shipbuilding Co anticipates the continuous development of the domestic cruise economy, projecting the nation’s cruise industry to reach a scale of 500 billion yuan.
Construction of China’s second domestically built cruise ship began in August 2022, with hopes to reduce construction man-hours by 20% and enhance efficiency based on the experience gained from building Adora Magic City. In 2023, Chinese shipbuilders delivered half of the global total, contributing 17.4 million compensated gross tonnage (CGT), signifying a significant consolidation of China’s role in the global shipbuilding industry.
Clarksons Research’s Steve Gordon noted that, despite recent disruptions, shipping remains crucial to the global economy, transporting 85% of all trade worldwide and recording a year-on-year growth of 2.2% in 2023, with an estimated 12.3 billion tons of global trade.
Significant results
Xing Wenhua, chairman of the Shanghai Society of Naval Architects and Marine Engineers, highlighted the robust development of the Chinese shipbuilding industry, excelling in contracting, orders, and deliveries with a leading market share. The industry’s recent achievements encompass large cruise ships, LNG, methanol, ammonia-powered vessels, high-end marine engineering equipment, ultra-large container ships, pure car and truck carriers, high-end marine fishery equipment, and marine research vessels.
Lin Guolong, director of Shanghai Maritime University’s Logistics Research Center, emphasized that these achievements reflect technological and craftsmanship prowess and market recognition. Major Chinese shipbuilders have excelled in constructing vessels known for their technical complexity, gaining global recognition.
Hudong-Zhonghua Shipbuilding, a CSSC subsidiary, has made strides in LNG carriers since delivering the nation’s first home-built LNG carrier, Dapeng Sun, in April 2008. With five generations of LNG carriers and a goal to double LNG vessel construction capacity, the company secured 37 new orders in 2022. Their self-designed LNG carrier, the world’s largest at 271,000 cubic meters, received approval in principle certificates from major classification bodies.
Jiangnan Shipyard (Group) Co, another CSSC unit, achieved its manufacturing target for the year ahead of schedule by upgrading techniques and accelerating processes. Noteworthy is the delivery of the world’s largest dual fuel Very Large Gas Carrier (VLGC), capable of transporting up to 93,000 cubic meters of liquefied gas, meeting the latest emissions regulations.
Despite China securing nearly 58% of global ship orders in the first 10 months of the previous year, Lin suggested that the nation is still at the initial stage of becoming a globally recognized shipbuilding power. To overcome challenges, he emphasized the need for enhanced competitiveness in research and development, designs, techniques, talent nurturing, efficient management, and flexibility in adapting to market needs.
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Source: China Daily
