CRHI Tanker Order Could Worsen Capacity Woes

choi

Robert Wright, CRHI Tanker Order Could Worsen Capacity Woes. Financial Times, Dec 9, 2011 (subheading "Industrial Transport" below the title).

Paragraphs 2 to 4:

"The order would support employment in the country's shipbuilding industry but flood struggling shipping markets with excess capacity.

"China Rongsheng Heavy Industries (CRHI), China's largest privately controlled shipbuilding group by order book size,  announced yesterday tat it had received an order for 10 Suezmax crude oil tankers, plus options for a further 10, for delivery in 2013 and 2014. Suemax tankers, the second-largest commonly-used size, carry 1m barrels of oil.

"The order came from Global Union Shipping, whose ownership is unclear but market speculation links it to one of China's state-owned shipping companies. New Suezmaxes cost $60-$70m so the total order, if placed, is likely to be worht up to $1,5bn.

My comment:
(a) I like this report. If you are not willing to read the entire report, the quotation will serve you well.
(b) Rongsheng Heavy Industries  熔盛造船
www.rshi.cn
(Founded in 2005; headquarters in both Hong Kong and Shanghai; shipbuilding at 江苏省南通市)
(c) I can not find any information about Global Union Shipping Ltd, not even its Chinese name. Indeed, three Chinese-language news reports, from media outlets based in China, uses the English name.
(d) Suezmax
http://en.wikipedia.org/wiki/Suezmax
(the largest ship measurements capable of transiting the Suez Canal, and is almost exclusively used in reference to tankers; CURRENT channel depth 20.1m; Similar terms of Panamax, Malaccamax and Seawaymax are used for the largest ships capable of fitting through the Panama Canal, the Strait of Malacca and Saint Lawrence Seaway, respectively.)
(e) 张子瑞, 船舶工业持续低迷 海工装备或成船企'救命稻草.' 中国能源报, Dec 8, 2011
http://info.gongchang.com/a/main-2011-12-08-429918.html
(船企遭遇订单荒)