Shipping

24
Operations Review
COSCO Corporation
(Singapore) Limited
EXPANSION PLAN AND
CAPACITIES OF SHIPYARDS
COSCO Nantong
– 2 floating docks (150,000 dwt, 80,000 dwt),
3 berths (1.1km total)
– Total 230,000 dwt
COSCO Dalian
– 2 floating docks (180,000 dwt,
80,000 dwt), 1 dry dock (150,000 dwt),
6 berths (1.6km total)
– Total 410,000 dwt
COSCO Guangzhou
– 1 floating dock (Panamax size, 80,000 dwt),
1 berth (405m)
– Total 80,000 dwt
COSCO Shanghai
– 1 floating dock (30,000 dwt),
1 berth (235m)
– Total 30,000 dwt
COSCO Xiamen
– 1 floating dock (20,000 dwt)
– 1 dry dock (35,000 dwt)
– Total 55,000dwt
COSCO Tianjin
– 1 workshop
COSCO Zhoushan
– 1 dry dock (150,000 dwt)
– 1 berth (500m)
– Total 150,000 dwt
Expansion initiatives
COSCO Corporation is currently engaged
in an aggressive expansion programme
aimed at propelling its ship repair business
to the top of the industry. The company is
also developing its capabilities in higheryield,
value-added services such as oil rig
manufacture and repair, a promising growth
driver in COSCO Corporation’s future.
At COSCO (Dalian) Shipyard, work on a
300,000 dwt floating dock commenced this
year and is expected to be completed in
October 2005. This new VLCC dock slated
for completion in FY2005 will further boost
the shipyard’s capacity by 31%. At COSCO
(Zhoushan) Shipyard, work began on two
additional berths and a 500,000 dwt dry
dock early this year, which will come on
stream in second quarter of FY2005 and
second quarter of FY2006 respectively.
These will be followed by the building of two
smaller capacity dry docks in FY2006 and
2007. By 2007, there will be a total of
6 berths and four dry docks in Zhoushan.
Upon completion, the Zhoushan shipyard
will be the largest in China. Of even greater
significance, its dry dock capacity will also
be the greatest in China, with the ability
to accommodate two VLCCs (“Very Large
Crude Carriers”) for repair concurrently, and
oil rigs. This increased capacity combined
with the ability to undertake oil manufacture
and repair will propel COSCO Corporation
to the forefront of the still-underdeveloped
offshore repair industry in China. It will
also enable COSCO Corporation to charge
premium prices, as Zhoushan shipyard
will be the only shipyard in mainland China
capable of repairing oil rigs.
In the meantime, COSCO Corporation’s
other shipyards under the COSCO Shipyard
Group are also undergoing upgrading to
enhance their capacities. This includes
COSCO (Shanghai) Shipyard Co., Ltd which
acquired a 30,000 dwt floating dock during
the year in review.
When all expansion works are completed
and the shipyards are fully operational, it is
expected that earnings from ship repair and
engineering will grow by an average double
digit growth per year, and will form the
largest portion of the COSCO Corporation’s
total revenue for the foreseeable future.
Honing operational excellence
COSCO Corporation’s increasing ship repair
capabilities and capacities are paired with
consistently high quality service standards.
These are maintained through rigorous
quality control checks and service training,
as well as the application of the industry’s
best practices in ensuring operational
excellence. Additionally, our shipyards’
staff’s expertise is regularly upgraded to
SembCorp Marine’s standards in terms
of management training and technology
transfer. All the shipyards’ operating units
have ISO9000 series accreditation. COSCO
(Dalian) is the first shipyard in China to have
been awarded ISO9001 certification for
quality management across its operations.