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Belt and Road Fuels Fujian Mawei Shipbuilding Growth

Fujian Mawei Shipbuilding
Fujian Mawei Shipbuilding

By MarEx 2018-08-11 18:57:07

China's Fujian Mawei Shipbuilding, the largest shipyard in Fujian province, has reported a dramatic increase in orders as a result of the Belt and Road Initiative.

Orders from places such as Singapore, Malaysia and the Middle East have increased to 53 ships over the past five years, over half of the yard's total orders for that time. For example, China Daily reports that the company has received an order for 12 container ships from Malaysian and German shipowners, two of which will be delivered by the end of this year. 

In January, Singapore-based Ocean Tankers ordered six handy-sized tankers, and earlier this year, the Marshall Islands-based subsidiary of Chinese deep sea fishing company Shanghai Kaichuang Marine International ordered three new tuna purse seiners from the yard.

Fujian Mawei Shipbuilding was established in 1866 and has played a key role in China's shipbuilding industry. The yard continues to expand into new vessel types, for example seafood processing and delivery vessels, which are expected to be in demand in emerging and Belt and Road markets. 

The Fujian province has boosted transport and trade infrastructure to support the Belt and Road initiative. China Daily reports the province's economy grew 8.1 percent last year, with foreign trade contributing to one third of its gross domestic product.

Chinese shipyards won 35 percent of the world's orders last year, but the nation has suffered from over-capacity. Dalian Shipbuilding Industry completed just 12 ships in 2017, and the government decided to merge its top two shipbuilders: China State Shipbuilding and China Shipbuilding Industry.

However, Tug Technology & Business reports that there has been an increase in tug construction this year for both domestic and international owners, with Chinese shipyards securing contracts for at least 15 tugs in the first six months of the year.