Enhance cooperation to Enhance cooperation to

seek mutual seek mutual

developmentdevelopment

CSNAMECSNAME

11 、、 Condition of China shiCondition of China shipbuilding industrypbuilding industry

1) China shipbuilding 1) China shipbuilding

industry is developing industry is developing

rapidly in these years.rapidly in these years.

• FirstFirst, The output is increasing rapidly. From 2, The output is increasing rapidly. From 2000 to 2004, the output of China shipbuilding i000 to 2004, the output of China shipbuilding industry has increased by 26% annually. The shndustry has increased by 26% annually. The shipbuilding output of China reaches 8.8million ipbuilding output of China reaches 8.8million dwt in 2004, 14% of the global share. China hadwt in 2004, 14% of the global share. China has remained the world’s third largest output ss remained the world’s third largest output shipbuilder for consecutive ten years. Its total ohipbuilder for consecutive ten years. Its total output in 2005 is expected to exceed 10million utput in 2005 is expected to exceed 10million dwt, a global share of 18% is expected.dwt, a global share of 18% is expected.

• SecondSecond, The structure of products has been undergoi, The structure of products has been undergoing changes. After the completions of the 300000dwt Vng changes. After the completions of the 300000dwt VLCC, 175000dwt bulk carrier and 5668 TUE containersLCC, 175000dwt bulk carrier and 5668 TUE containership, hip, and and 8000TUE containership, China8000TUE containership, China

has entered into LNG shipbuilding market successfully. has entered into LNG shipbuilding market successfully. Its longstanding experience and comprehensive range Its longstanding experience and comprehensive range of skills has resulted in the capability to build all kinds of skills has resulted in the capability to build all kinds of hi-quality ships. The quality of China-made main enof hi-quality ships. The quality of China-made main engines, auxiliary engines have reached the world advangines, auxiliary engines have reached the world advanced level.ced level.

• Lot of home-made marine equipment have been Lot of home-made marine equipment have been used on the domestic shipping vessels and ships exporused on the domestic shipping vessels and ships expor

ted outside. China has considerable experience in desited outside. China has considerable experience in designing and building many different types of offshore pgning and building many different types of offshore products, such as platforms and FPSO over 200,000 dwt.roducts, such as platforms and FPSO over 200,000 dwt.

• Ships built by China have been exported to Ships built by China have been exported to over 100 countries and regions including over 100 countries and regions including USA, Japan, Germany, France and Canada. USA, Japan, Germany, France and Canada. The shipbuilding industry has become an The shipbuilding industry has become an important part in China’s foreign trade important part in China’s foreign trade business. The total volume of exported business. The total volume of exported ships in 2004 reached 5.6 million DWT, ships in 2004 reached 5.6 million DWT, valued US$3.16 billion.valued US$3.16 billion.

• ThirdThird, quality economic progress achieved. Th, quality economic progress achieved. The output, income and profits of China shipbuile output, income and profits of China shipbuilding industry have been improved greatly in 2ding industry have been improved greatly in 2004. Great progress has been achieved in the s004. Great progress has been achieved in the structure reform by China shipbuilding industry.tructure reform by China shipbuilding industry. An shipbuilding base with a proper structure a An shipbuilding base with a proper structure and layout consisting of state-owned enterprisend layout consisting of state-owned enterprises, private enterprisess, private enterprises ，， joint ventures and forjoint ventures and foreign solely owned enterprises has been setting eign solely owned enterprises has been setting up through management system reform.up through management system reform.

2) Make great effort to 2) Make great effort to

serve the world shipping serve the world shipping

industryindustry

• As a member of the shipbuilding community, we pay As a member of the shipbuilding community, we pay more attention to the effects put by global economic more attention to the effects put by global economic growth and international trade on the development of growth and international trade on the development of both shipping market and shipbuilding industry in both shipping market and shipbuilding industry in recent years.recent years.

• According to IMF statistics, in past 4 years, the global According to IMF statistics, in past 4 years, the global GDP grew by 2.4%, 3%, 3.9%, 5% respectively, while GDP grew by 2.4%, 3%, 3.9%, 5% respectively, while the global export and import volume grew by 0.1%, the global export and import volume grew by 0.1%, 3.3%, 5.1% and 8.8% respectively thanks to the rapid 3.3%, 5.1% and 8.8% respectively thanks to the rapid world economic growth especially Chinese economic world economic growth especially Chinese economic growth. growth.

• At present, 90% of the export and import goods in the At present, 90% of the export and import goods in the world have been carried by oceangoing freighters. world have been carried by oceangoing freighters. The prosperous global trading market has spurred the The prosperous global trading market has spurred the development of global shipbuilding industry.development of global shipbuilding industry.

• It is predicted the sustained growth of CIt is predicted the sustained growth of China economy in the future will stimulathina economy in the future will stimulate the development of domestic shipping e the development of domestic shipping industry. Ocean exploitation and ocean findustry. Ocean exploitation and ocean fishery development will increase the deishery development will increase the demand on the products of the chinese anmand on the products of the chinese and the world shipbuilding industry.d the world shipbuilding industry.

We are confident that China We are confident that China shipbuilding industry will provide hi-shipbuilding industry will provide hi-quality vessels, marine products and quality vessels, marine products and service to the world. We wish to service to the world. We wish to make contributions to the make contributions to the development of global shipping and development of global shipping and shipbuilding industry!shipbuilding industry!

3). Challenge lies ahead3). Challenge lies ahead

• Competition and risk are the two main Competition and risk are the two main respects which lies ahead of China respects which lies ahead of China shipbuilding industry. The first is market shipbuilding industry. The first is market fluctuation risk. Because of the periodic fluctuation risk. Because of the periodic fluctuation rule of international economy fluctuation rule of international economy and shipbuilding market, unusual market and shipbuilding market, unusual market blossoming in a period will not last a long blossoming in a period will not last a long time. The current price of tanker has time. The current price of tanker has emerged drop trend. With two year tides emerged drop trend. With two year tides of contracting and the upcoming two year of contracting and the upcoming two year picks of delivery, the global shipbuilding picks of delivery, the global shipbuilding market will suffer great pressure. market will suffer great pressure.

• Secondly, exchange rate fluctuation is the othSecondly, exchange rate fluctuation is the other important risk. The fluctuation will bring huer important risk. The fluctuation will bring huge pressure on shipbuilding competitive powege pressure on shipbuilding competitive power. Fluctuation of RMB exchange rate to other cr. Fluctuation of RMB exchange rate to other currency will influence the profits of Chinese shiurrency will influence the profits of Chinese shipyards inevitably. Additionally, the changes of pyards inevitably. Additionally, the changes of interest rate, steel price, and labour cost will iinterest rate, steel price, and labour cost will increase pressure on shipbuilding production cncrease pressure on shipbuilding production cost. All of these are serious problems that Chinost. All of these are serious problems that China shipbuilding industry should resolve so as to a shipbuilding industry should resolve so as to make further development.make further development.

2. More attention to the 2. More attention to the

changes of international changes of international

standardsstandards

In recent years, IMO, IACS and In recent years, IMO, IACS and international shipping circles have international shipping circles have introduced many new international introduced many new international standards, such as Common standards, such as Common Structure Rules (CSR), JTP, JBP, Structure Rules (CSR), JTP, JBP, Standard for Coating on Ballast Standard for Coating on Ballast Tanks, and Standard on Shipbuilding Tanks, and Standard on Shipbuilding Contract, etc. All of these items have Contract, etc. All of these items have caught much of our eyes.caught much of our eyes.

1). JTP and JBP1). JTP and JBP

• JTP and JBP of IACS will enter into force on April 1st, JTP and JBP of IACS will enter into force on April 1st, 2006. Both of them are the common intellectual 2006. Both of them are the common intellectual wealth combining science & technology wealth combining science & technology achievements and operational experience s of the achievements and operational experience s of the world shipping and shipbuilding industry. These world shipping and shipbuilding industry. These projects will help us to develop and build more projects will help us to develop and build more reliable, environmental and safer ships so as to reliable, environmental and safer ships so as to avoid serious environmental pollution. On the other avoid serious environmental pollution. On the other hand, we also know that the implementation of the hand, we also know that the implementation of the JTP and JBP will bring new requests on ship design JTP and JBP will bring new requests on ship design and construction. More efforts are necessary for and construction. More efforts are necessary for China to take to adapt to these new rules and China to take to adapt to these new rules and regulations. Therefore, we’re looking forward to regulations. Therefore, we’re looking forward to communicating with shipbuilding colleagues, class communicating with shipbuilding colleagues, class societies and ship owners from other countries.societies and ship owners from other countries.

2). New standards for 2). New standards for

coating on ballast tankscoating on ballast tanks

• IMO has been making new standards for coatiIMO has been making new standards for coating on ballast tanks which are planned to come ng on ballast tanks which are planned to come into effect on June 1st, 2006. In viewing of the into effect on June 1st, 2006. In viewing of the effect on ship coating, production cost and buieffect on ship coating, production cost and building period brought by new standards, CSNAlding period brought by new standards, CSNAME has set up a work team focusing on the shiME has set up a work team focusing on the shipbuilding coating performance standards. The pbuilding coating performance standards. The work team has make research on international work team has make research on international shipbuilding development, investigation on coshipbuilding development, investigation on coating technics and measures in Chinese shipyaating technics and measures in Chinese shipyards, in order to hand in China’s suggestion to rds, in order to hand in China’s suggestion to IMO within the time.IMO within the time.

3)3) Though we are concerning with Though we are concerning with the Standard on Shipbuilding the Standard on Shipbuilding Contract and other issues involved in Contract and other issues involved in the meeting, we have not present a the meeting, we have not present a thought because we have not yet thought because we have not yet read related files and details.read related files and details.

But we welcome any suggestions But we welcome any suggestions which helpful to the development of which helpful to the development of shipbuilding industry, and expect shipbuilding industry, and expect discussion with each party.discussion with each party.

33 、、 Best wish to the Best wish to the Tripartite-meetingTripartite-meeting

In the course of development of China shipIn the course of development of China shipbuilding industry, China’s payed great attentbuilding industry, China’s payed great attention to cooperation. Since the initiation of reforion to cooperation. Since the initiation of reform and opening, China has introduced more thm and opening, China has introduced more than 100 patents and technology for shipbuildinan 100 patents and technology for shipbuilding and marine equipment, which has played img and marine equipment, which has played important role for improving our shipbuilding tecportant role for improving our shipbuilding technology and quality level. China Shipbuilding hnology and quality level. China Shipbuilding Engineering Society is very interested in establEngineering Society is very interested in establishing friendly cooperation relationship with tishing friendly cooperation relationship with the related organizations of shipping industry, he related organizations of shipping industry, shipbuilding industry and classification societshipbuilding industry and classification society over the world. y over the world.

We believe that the Tripartite-meeting will further We believe that the Tripartite-meeting will further enhance communication and understanding among enhance communication and understanding among

the communities of shipping, shipbuilding and the communities of shipping, shipbuilding and classification society in the world. Since its first classification society in the world. Since its first meeting in Singapore, the Tripartite-meeting has meeting in Singapore, the Tripartite-meeting has been held successively in Shanghai, Seoul, Osaka. been held successively in Shanghai, Seoul, Osaka. Today, it’sToday, it’s

our pleasure to hold the Tripartite-meeting in China our pleasure to hold the Tripartite-meeting in China again. The scale of the meeting has been expanding, again. The scale of the meeting has been expanding, attracting more delegates to discuss items. Not only attracting more delegates to discuss items. Not only

the shipbuilding communities in China, Japan and the shipbuilding communities in China, Japan and Korea, but also the communities of the global Korea, but also the communities of the global shipbuilding, shipping and classification societies shipbuilding, shipping and classification societies have eyed on it. have eyed on it.

The subjects under discussion on the meeting are The subjects under discussion on the meeting are important problem of common concern and common important problem of common concern and common interests. We hope the Tripartite-meeting will be a interests. We hope the Tripartite-meeting will be a long lasting platform for every party to communicate long lasting platform for every party to communicate and exchange information and ideas in the future. and exchange information and ideas in the future.

Thank you for your attention!Thank you for your attention!