Innovation Upholds Ship-Making Industry of China

China's ship makers rank second in the world in terms of the number of orders they have. That's according to statistics released recently by Clarkson Research Studies, a top ship-making consultant agency in the world.

Insiders say China's ship-making industry has improved its competitiveness mainly by cultivating new ship models with independent IPR.

Reporter:

At the dock of Shanghai Waigaoqiao Shipbuilding Company, two Cape-size bulk carriers of over 175,000 tons are being delivered to their clients, one of which is from another major ship-making nation, Japan.

General engineer of Waigaoqiao, Tao Ying, says the Cape-size bulk carrier was a traditional ship model. But his company modified its fuel tanks and other systems, which is one of the reasons for the popularity of this ship among clients.

"This bulk carrier originally had its fuel tank at the bottom. If the ship hits rocks, the fuel would leak out easily. So we move the tank from the bottom to a higher place near the board."

Tao Ying also says the company has produced a storage and offloading ship with a carrying capacity of 300,000 tonnes. It is one of the only three such ships in the world.

By building such sophisticated ships, Waigaoqiao has been listed among the world's top ten ship makers, only five years after its establishment.

In 2006, China's production of ships increased 20 percent from the previous year. Profit increased by more than 100 percent to about 1.3 billion US dollars.

At the moment, China owns over one third of the global orders for super oil tankers of over 300,000 tons. It has also accomplished research into advanced super container ships.

The country is building three ship making centers, respectively in Bohai Gulf and the estuaries of Yangtze and Pearl Rivers.

Zhang Xiangmu, a senior official of the ship industry, explains China's development target by 2010.

"We hope that by developing ship-building capability and promoting innovation, about five Chinese ship-making companies can be listed among the top ten ship-makers in the world, and over 20 companies will be among the top 50."

The country's first regulation on ship-making criteria will take effect on October 1st, to lead the industry in a more regulated and orderly direction.