July 04, 2017

CSSC offers bonded ship repair services in Yangshan Port

The China State Shipbuilding Corporation (CSSC) opened a maritime service company and a repair supplies center in Yangshan Port Free Trade Area on Friday.

The company, registered in Shanghai Free Trade Zone, will provide bonded repair services for international ships. CSSC also plans to set up 28 ship repair facilities around the world by the end of 2020.

Ship repair business is rapidly growing in the FTZ. MAN Group opened a supply chain management company in the zone in 2013 to provide bonded repair services for feeder vessels. Its business revenue grew steadily in the past three years.

CSIC, the only Chinese shipbuilder to rank among Fortune 500 companies, launched the CSIC-JARI Bonded Distribution Center in Yangshan Port Free Trade Area last December to distribute ship equipment and parts worldwide and provide bonded repair services.

Ship repair is a billion-dollar business as there are about 120,000 ocean-going ships in the world. If each ship costs 200,000 yuan (US$29,460) a year to replace engine parts, the total amount will reach 24 billion yuan a year, not including the replacement of other parts or equipment. The ship repair business is estimated at 176 billion yuan a year.