Ship repair demand expected to jump on opening of shipping links

Taiwan's leading shipbuilder CSBC Corp.unveiled a plan Saturday to expand its ship repair services to meet a possible rise in repair demand following the recent opening of direct shipping links with China. CSBC Corp. Chairman Cheng Wen-lon noted that revenue from ship repairs currently contribute to 5 percent of the company's total revenues, but the segment is expected to get a significant boost thanks to the launch of direct cross-Taiwan Strait shipping.
In particular, the lack of any large shipbuilding or ship repair facilities along the Chinese coast between Shanghai and Guangzhou means the business would be even more lucrative, Cheng said.
Targeting this new business opportunity, the company is planning to set up floating docks in coastal areas to strengthen its ship repair capacity, he said.
This year, the company, which completed its privatization Dec. 18, is expected to post profits amounting to NT$6 billion, before deductions for the retirement pension reserve fund. Its profits will be the highest recorded in the 35 years since the company was established, Cheng said.
The company is holding shipbuilding orders amounting to a total of NT$120 billion, which will keep its production lines busy for the next three and a half years, he said.
He said that in the future, the privatized CSBC Corp. will work to enhance its international competitiveness, upgrade its production efficiency and strengthen cost control to further improve its performance.
Meanwhile, CSBC Vice President Wang Ko-hsuan noted that the global shipbuilding industry has suffered becuase of the worldwide recession, with orders for more than 240 bulk carriers and 27 container vessels having been canceled around the world.
However, the CSBS has not faced such problems because its main clients are all top reputable ship owners, such as Taiwan-based Yang Ming Marine Transport Corp. and Wan Hai Lines and Japan-based Marubeni Corp, Wang said.