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          Home / China / Business

          Polar ship to cost $153m

          By Lu Haoting And Zhong Nan | China Daily | Updated: 2016-03-11 08:05

          Shipyard official says bidding on nation's second icebreaker due to start next month

          Bidding for the construction of China's second polar research ship will start by the end of April and the new vessel will boast stronger icebreaking capabilities, said a senior official with one of the country's largest shipbuilders.

          The ship's estimated budget will be more than 1 billion yuan ($153.5 million) and the construction is expected to take about two years, said Hu Keyi, technical director of Jiangnan Shipyard (Group) Co Ltd.

          Hu, also a member of the National Committee of the Chinese People's Political Consultative Conference, made the remarks on the sidelines of the annual meeting of the CPPCC on Wednesday.

          The new ship is expected to provide huge support to China's scientific expeditions to the polar regions.

          Xuelong, or Snow Dragon, is the only Chinese icebreaking research ship in service. Built in Ukraine in 1993, the ship was converted from an Arctic cargo ship to a polar research and supply vessel by China in the mid-1990s. The ship has undergone upgrading four times, two of them at Jiangnan Shipyard. It is now serving China's 32nd Antarctic expedition. It has also made voyages to the Arctic.

          "The new vessel is designed from the very beginning in accordance with special polar research and supply requirements," Hu said.

          "It is tailor-made and will boast stronger research capabilities and be more comfortable and environmentally friendly," he added.

          Jiangnan Shipyard will be one of the several Chinese shipbuilders joining the bidding process. The Shanghai-based company is a historic shipyard, dating back to the late 19th century. As China's industrial working class was nurtured in Jiangnan, the shipyard has been regarded as the cradle of the country's national shipbuilding industry. It now builds, repairs and converts both civilian and military vessels.

          "The competition process will be fierce, especially at a time when the whole shipbuilding industry is suffering from falling demand," Hu said.

          Polar ship to cost $153m

          Shipbuilding is one of the sectors suffering from overcapacity. More than 30 major large-scale shipyards went bankrupt over the past two years, according to the China Association of the National Shipbuilding Industry.

          "China has excess capacity in building conventional ships, but not in complex and high value-added ships," Hu said. "Adjusting production structure should be the key. The government should encourage domestic companies to develop vessels in areas such as security, science and research and engineering," Hu said in his proposal to the annual session.

          Hu said Jiangnan Shipyard has "very healthy cash flow" due to its advantage in building high-end and special-purpose vessels, including liquefied gas tankers.

          Dong Liwan, a shipping industry professor at Shanghai Maritime University, agreed.

          Capable Chinese shipyards are now focusing on vessels with a higher value, such as liquefied natural gas and liquefied petroleum gas carriers. Some have also begun to develop new sectors, including marine fishing ships and law enforcement vessels, Dong said.

          Contact the writers at luhaoting@chinadaily.com.cn and zhongnan@chinadaily.com.cn

          Polar ship to cost $153m

          Visitors take photos of the model of a container freighter made by Jiangnan Shipyard (Group) Co Ltd at an exhibition in Shanghai. The shipyard will soon join the bidding for construction of the country's second polar research ship. Provided To China Daily

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