In 2013, the total received orders of marine engineering industry went up 16 percent to more than USD 18 billion, accounting for about 29.5 percent of the global market, having overtaken Singapore to rank second worldwide, according to the latest statistics from the Ministry of Industry and Information Technology. In the year, China undertook the construction of 61 marine engineering platforms of various types and 1 drilling ship, including 49 jack-up offshore platforms that accounted for more than half of the world's total.
Vast prospects for the industry
Recently, China Shipbuilding Industry Corporation announced that in 2013 the company has received orders of jack-up drilling platforms, semi-submersible drilling platforms, and auxiliary marine engineering equipments, with the contract value being more than 6 times that of the previous year, accounting for more than 12 percent of the total contract value the company undertook in the year, and the economic aggregate it achieved growing 41 percent over the previous year. As of now, the corporation has undertaken the construction of a total of 67 marine engineering structures, ranking first in China, and marine engineering equipments are gradually becoming an important economic growth pole of the company.
As demand for offshore oil and gas resources continues to grow, the marine engineering equipment market keeps expanding. Some organization predicted that: "Average annual investment from 2013 to 2018 in the exploitation of offshore oil and gas would be more than USD 327 billion; at a market share of 20 to 25 percent, demand of the marine engineering market values at USD 65 to 81 billion".
Judging from the current status of development, China's offshore oil and gas resource exploitation equipments are now in the phase of industrialization and will be a key area of growth of the marine engineering equipments industry in the next decade; technology equipments for ocean wind energy and sea water desalination also show great development prospects. On the other hand, during the 11th Five-year Plan, and annual sales revenue of China's oil and gas exploitation equipments was about RMB 30 billion Yuan, already accounting for 7 percent of the global market that worthies between USD 50 to 60 billion. Besides, although China has basically achieved the independent designing of submersible oil and gas equipments, but its marine engineering equipment manufacturing industry on the whole is still at the bottom of the industrial chain, with inadequate supporting capacity and heavy reliance on import for core equipments and systems; the next 5 to 10 years will be a key period for the development of the industry.
Zhao Zehua, director of the Research Center for the Development of the Marine Engineering Equipment Industry, said that what lies behind the prosperity of the marine engineering equipment market is the emergence of a large quantity of high-value orders; in 2011, the unit price of drilling rig averaged at USD 397 million, equal to 8.5 180-thousand-ton bulk-cargo ships. According to analysis, it is believed that, as countries are attaching increasing importance to continental shelf resources, the marine engineering equipment manufacturing industry will begin to enter a gold period of growth, and the growth prospects of offshore oil and gas exploration and exploitation equipments are regarded favorably.
Around the globe, the world's marine engineering equipment industry also performs outstandingly. In the first three quarters of 2013, the transaction volume of marine engineering equipments worldwide was USD 44.5 billion; the transaction volume in the whole year of 2013 could be expected to exceed USD 60 billion for the third consecutive year.
With favorable environment domestically and internationally, industrial insiders generally believe that China's marine engineering equipment market has vast room of development and promising prospects, and it is estimated that the growth period may last for up to 50 years. Besides the Bridges and Marine Engineering Equipments Industrial Park of the Wuhan Bridge Heavy Industries whose construction has just been kicked off, a number of marine engineering investment projects currently under construction, and the deep-water marine engineering equipment manufacturing base in Zhuhai that is constructed with an investment of RMB 5 billion Yuan from CNOOC, currently China has basically established marine engineering equipment assembly and auxiliary equipments production clusters around the Bohai Rim, the Yangtze River Delta, and the Pearl River Delta; the strategic layout of China's marine engineering industry has basically formed.
It is learned that in order to accelerate the process for China's marine engineering equipment to become more high-end and independent, the Ministry of Industry and Information Technology and the Ministry of Finance are working on taxes and financial support policies tailored to high-end marine engineering equipments; the marine engineering industry is likely to receive policy bonus.
Energetic reform for companies
In recent years, under the influence of the international financial crisis, the problems of the serious excess of shipbuilding capacity, the insufficiency of market orders, and the difficulty in delivering ships have not improved significantly. To salvage the troubled shipbuilding industry, the State Council and relevant departments have promulgated a series of plans for the shipbuilding industry, encouraging shipbuilders to accelerate the pace of structural adjustment, reform, and upgrading.
Under policy support, the shipbuilding industry has seen a large-scale trend of reform and upgrading. Amid this, the reform most sought after by shipbuilding companies is the marine engineering equipment industry.
On January 10, China International Marine Containers published a message on its website, announcing that its wholly-owned subsidiary CIMC Raffles had received a new order from CSM Group: Raffles was to build 2 Friede&GoldmanJU2000E jack-up platforms for CSM, to be delivered at the end of 2015; at the same time, the company had also received back-up orders for another 4 platforms for CSM Group.
Zhen Yi, an analyst of GF Securities, said that globally the technology requirements and price for jack-up drilling platforms with operating water depth of 400 feet are rather high. CIMC's receiving orders for 2+4 JU2000E platforms is an indication that the company has achieved great breakthroughs in high-end jack-up drilling platforms.
In 2013, some companies that had reformed long ago saw great harvests. After completing the repair of its first jack-up drilling platform, Pacific (Zhoushan) Offshore Engineering Company had received an order for a marine engineering life platform that is worth USD250 million, estimated to be completed in about one and a half years.
Besides, Shanghai Zhenhua Heavy Industries has received an order from its European client for 1+1 400-feet jack-up drilling platform. SWS Offshore has signed contract with a Singaporean ship buyer for 2+2 offshore platform tender vessel.
Nonetheless, the company that is regarded by the market as the most successful in reforming is China Shipbuilding Industry Corporation. CSIC has become the bellwether of China's marine engineering equipment industry, thanks to its possession of world-class docks specifically for marine engineering and auxiliary production facilities that conform to international marine engineering standards, and its consummate marine engineering design and building capacity ranging from repair and restructuring, partial construction and complete construction, and subcontracting and overall contract construction; the company's marine economic business has seen explosive growth.
Vast prospects for the industry
Recently, China Shipbuilding Industry Corporation announced that in 2013 the company has received orders of jack-up drilling platforms, semi-submersible drilling platforms, and auxiliary marine engineering equipments, with the contract value being more than 6 times that of the previous year, accounting for more than 12 percent of the total contract value the company undertook in the year, and the economic aggregate it achieved growing 41 percent over the previous year. As of now, the corporation has undertaken the construction of a total of 67 marine engineering structures, ranking first in China, and marine engineering equipments are gradually becoming an important economic growth pole of the company.
As demand for offshore oil and gas resources continues to grow, the marine engineering equipment market keeps expanding. Some organization predicted that: "Average annual investment from 2013 to 2018 in the exploitation of offshore oil and gas would be more than USD 327 billion; at a market share of 20 to 25 percent, demand of the marine engineering market values at USD 65 to 81 billion".
Judging from the current status of development, China's offshore oil and gas resource exploitation equipments are now in the phase of industrialization and will be a key area of growth of the marine engineering equipments industry in the next decade; technology equipments for ocean wind energy and sea water desalination also show great development prospects. On the other hand, during the 11th Five-year Plan, and annual sales revenue of China's oil and gas exploitation equipments was about RMB 30 billion Yuan, already accounting for 7 percent of the global market that worthies between USD 50 to 60 billion. Besides, although China has basically achieved the independent designing of submersible oil and gas equipments, but its marine engineering equipment manufacturing industry on the whole is still at the bottom of the industrial chain, with inadequate supporting capacity and heavy reliance on import for core equipments and systems; the next 5 to 10 years will be a key period for the development of the industry.
Zhao Zehua, director of the Research Center for the Development of the Marine Engineering Equipment Industry, said that what lies behind the prosperity of the marine engineering equipment market is the emergence of a large quantity of high-value orders; in 2011, the unit price of drilling rig averaged at USD 397 million, equal to 8.5 180-thousand-ton bulk-cargo ships. According to analysis, it is believed that, as countries are attaching increasing importance to continental shelf resources, the marine engineering equipment manufacturing industry will begin to enter a gold period of growth, and the growth prospects of offshore oil and gas exploration and exploitation equipments are regarded favorably.
Around the globe, the world's marine engineering equipment industry also performs outstandingly. In the first three quarters of 2013, the transaction volume of marine engineering equipments worldwide was USD 44.5 billion; the transaction volume in the whole year of 2013 could be expected to exceed USD 60 billion for the third consecutive year.
With favorable environment domestically and internationally, industrial insiders generally believe that China's marine engineering equipment market has vast room of development and promising prospects, and it is estimated that the growth period may last for up to 50 years. Besides the Bridges and Marine Engineering Equipments Industrial Park of the Wuhan Bridge Heavy Industries whose construction has just been kicked off, a number of marine engineering investment projects currently under construction, and the deep-water marine engineering equipment manufacturing base in Zhuhai that is constructed with an investment of RMB 5 billion Yuan from CNOOC, currently China has basically established marine engineering equipment assembly and auxiliary equipments production clusters around the Bohai Rim, the Yangtze River Delta, and the Pearl River Delta; the strategic layout of China's marine engineering industry has basically formed.
It is learned that in order to accelerate the process for China's marine engineering equipment to become more high-end and independent, the Ministry of Industry and Information Technology and the Ministry of Finance are working on taxes and financial support policies tailored to high-end marine engineering equipments; the marine engineering industry is likely to receive policy bonus.
Energetic reform for companies
In recent years, under the influence of the international financial crisis, the problems of the serious excess of shipbuilding capacity, the insufficiency of market orders, and the difficulty in delivering ships have not improved significantly. To salvage the troubled shipbuilding industry, the State Council and relevant departments have promulgated a series of plans for the shipbuilding industry, encouraging shipbuilders to accelerate the pace of structural adjustment, reform, and upgrading.
Under policy support, the shipbuilding industry has seen a large-scale trend of reform and upgrading. Amid this, the reform most sought after by shipbuilding companies is the marine engineering equipment industry.
On January 10, China International Marine Containers published a message on its website, announcing that its wholly-owned subsidiary CIMC Raffles had received a new order from CSM Group: Raffles was to build 2 Friede&GoldmanJU2000E jack-up platforms for CSM, to be delivered at the end of 2015; at the same time, the company had also received back-up orders for another 4 platforms for CSM Group.
Zhen Yi, an analyst of GF Securities, said that globally the technology requirements and price for jack-up drilling platforms with operating water depth of 400 feet are rather high. CIMC's receiving orders for 2+4 JU2000E platforms is an indication that the company has achieved great breakthroughs in high-end jack-up drilling platforms.
In 2013, some companies that had reformed long ago saw great harvests. After completing the repair of its first jack-up drilling platform, Pacific (Zhoushan) Offshore Engineering Company had received an order for a marine engineering life platform that is worth USD250 million, estimated to be completed in about one and a half years.
Besides, Shanghai Zhenhua Heavy Industries has received an order from its European client for 1+1 400-feet jack-up drilling platform. SWS Offshore has signed contract with a Singaporean ship buyer for 2+2 offshore platform tender vessel.
Nonetheless, the company that is regarded by the market as the most successful in reforming is China Shipbuilding Industry Corporation. CSIC has become the bellwether of China's marine engineering equipment industry, thanks to its possession of world-class docks specifically for marine engineering and auxiliary production facilities that conform to international marine engineering standards, and its consummate marine engineering design and building capacity ranging from repair and restructuring, partial construction and complete construction, and subcontracting and overall contract construction; the company's marine economic business has seen explosive growth.