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China Marine Industry Market


This section covers the use and development of various sea-related industries,
including shipbuilding, ports, pleasure boats, sea communications and transportation,
offshore oil and gas, sea-related chemicals and sea fishery, etc.

China's marine market has been growing strongly for the past several years.
According to the "National Marine Economy Development Program" issued by the
State Council, the value of sea-related industries would constitute approximately 4%
of GDP by 2005; and the aggregate marine industries will gradually become one of
the pillar industries in China's economy.

According to Chinese Customs statistics, China's total value of ship imports and
exports reached US$4.2 billion in 2004, of which ship imports accounted for
US$1.1billion, an increase of 32.7% from 2003. Trade volume reached a new height
in 2005. However, oceanic pollution and the industry's structural imbalances continue
to present challenges for the development of the marine industry.


Best prospects in China's marine industries include shipbuilding, pleasure boats, and
port related accessories and sea transportation.


Since 1999, the output of China's shipbuilding industry has been ranked number three
in the world. According to the latest estimates from the China Association of the
National Shipbuilding Industry (CANSI), in 2005 China's shipbuilding output is
projected to exceed 12 million deadweight tons (DWT), and its global market share to
rise to a historical high of 18%. China's top two shipbuilding entities, the China
Shipbuilding Industry Corporation (CSIC) and the China State Shipbuilding
Corporation (CSSC) reported annual output of 3 million tons and 5 million tons
respectively and both have a full production schedule over the next three years. By
2015, China is expected to become the No. 1 shipbuilding power in the world.

China urgently needs technology, machinery and management for the shipbuilding
industry. The best prospects for shipbuilding are raw materials, coating equipment
and coating materials, CAD (Computer aided design) software and associated
technology for ship design and construction, equipment maintenance, high tech
equipment such as GPS, navigation and on board computer systems, cutting and
welding technology, and related equipment.

Recreational Boats

With the rapid growth of the economy, China's recreational marine market is forecast
to grow sharply in the coming years. Based on a belief that recreational boats will
become a part of the life style of the country's expanding middle and wealthier
classes, provincial governments, property developers and boat builders are all
investing heavily in this industry. Business experts estimate that the market will pick
up speed after 2005, and the overall market size would reach US$10 billion over the
next decade, which will present significant opportunities for the export of U.S.
pleasure boats, accessories, marina planning and construction materials.

Port and Sea Transportation

China is allocating a massive amount of money to port and waterway construction to
meet the significant growth of freight volume. Since 2004, China has stepped up the
construction of ports. China's port throughput is increasing rapidly. According to the
Ministry of Communications, China's port throughput increased 21.3% to four billion
tons in 2004, ranking first in the world.

China has also strengthened the container transport system. Container ports have been
growing at a rate of 20 percent or more per year for over 10 years. In 2004, the total
container throughput in Chinese seaports reached 61.5 million TEU (twenty-foot
equivalent units), an increase of 26.4 percent. Eight ports, namely Shanghai, Shenzhen,
Qingdao, Tianjin, Guangzhou, Xiamen, Ningbo and Dalian, are included among the 50
top container harbors in the world.

To facilitate increased global trade, most ports in China are emphasizing the
expansion of their capacity as well as the modernization of operations. Products and
technologies in high demand include Vessel Traffic Management Information
Systems, laser-docking systems, terminal tractors, dredging equipment and security
equipment for International Ship and Port Security Codes (ISPS).

Shipbuilding bases

According to the shipbuilding industry report issued by the State Council, China is
embarking on major efforts to increase shipbuilding capacity. The country plans to
build three major shipbuilding bases in the Bohai rim, East China Sea and South
China Sea. The China State Shipbuilding Corporation (CSSC), the country's leading
shipyard, began construction of the Changxing Shipbuilding Base on the Shanghai
coast in 2003. When completed in 2015, the Changxing Base will be the largest
shipyard in the world with annual shipbuilding capacity reaching eight million tons.

Marina development

Although there are presently only a handful of marinas in China, dozens more are
under construction being planned. Many luxury residences in major cities incorporate
waterways and boating facilities in their developments.

The Shanghai municipal government is in the process of announcing plans for the
city's yachting industry development over the next two decades. The success of
Shanghai's bid to host the 2010 World Expo will push the boat industry to develop
more rapidly. The Shanghai Government has decided to build marinas and cruise ship
centers along the downtown river as part of its efforts to make Shanghai into a world
class city.

Other cities and areas that either have on-going marina projects, or are in the planning
process, include Zhoushan, Qingdao ,Dalian, Ningbo, Beihai, Dongguan, Shengzhen
and Hainan Island.

Deepwater Port

China is building more deep-water berths to handle the larger fifth and sixth generation
container vessels. The largest project is the Yangshan deep-water port, approximately 20
miles offshore from Shanghai. The first phase was completed and put into operation at
the end of 2005, adding 5 new berths and a capacity of 2 million TEUs per year. A
second phase will add 2 to 4 berths, depending on the demand. The original plan is to
complete 50 berths by 2020, which will cost over US$10 billion. The master plan also
includes a 32 KM causeway bridge (already completed), as well as a logistics park and
new harbor city on the mainland.

For more information about this topic, search Marine Industries Market in Glogou.

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