Yangzijiang Shipbuilding (Holdings) is set to own the largest dry dock in China as the Singapore-listed company, which holds a 60% stake in Yangzi Xinfu Shipbuilding, is building a 543-metre-by-147-metre dock that will be ready from 2013.
Industry watchers says the new dock will overtake Hong Kong-listed Rongsheng Heavy Industries’s No 4 dry dock, which measures 530 metres by 135 metres and is currently the largest of its kind in the country.
The move has raised concerns that it will further aggravate the excess capacity the Chinese shipbuilding industry is currently facing. However, some market players reckon it is necessary for Yangzijiang to own a large dock in order to exercise flexibility and adapt to market changes.
“Yangzijiang is building this mega-size dry dock so that it can construct large vessels as well as offshore units,” said one industry pundit.
Industry players say Yangzijiang will be using the dock to construct the 10,000-teu containerships that Seaspan Corp is intending to book.
“Another reason for building the dry dock is that Yangzijiang did not succeed in taking over oil-rig maker PPL Shipyard. As a result, it is investing in Yangzi Xinfu to enter the offshore sector,” said one shipbuilding player.