A second dock at Dalian COSCO KHI Ship Engineering Co in China could clear the way for Kawasaki Heavy Industries to build LNG carriers outside Japan
Completion of a second dock at Dalian COSCO KHI Ship Engineering Co in Dalian City, China, could clear the way for Kawasaki Heavy Industries (KHI) to build LNG carriers outside Japan. Building in China would enable KHI to lower its construction costs to compete against South Korea shipbuilders Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries, who dominate LNGC construction.
Established in 2007, Dalian COSCO KHI Ship Engineering Co (DACKS) is owned jointly by COSCO Shipbuilding Industry Co, which has a 36% stake, KHI, which has an interest of 34% and Nantong COSCO KHI Ship Engineering Co (NACKS), which controls 30%. NACKS is a 50-50 joint venture between COSCO Shipbuilding Industry and KHI. The partners invested CNY2.62Bn (US$391M) in developing the shipyard.
KHI has completed the No. 2 Dock at DACKS which has a length of 550 m, width of 68 m and is equipped with four cranes including two 800-tonne gantry cranes. With its dual-dock configuration, DACKS is now able to more efficiently build large-size merchant vessels. DACKS has begun construction of a 61,000-dwt bulk carrier in the new dock for delivery to China’s CMB Financial Leasing Co.
The newly completed dock has been in planning since the founding of DACKS in 2007, and was built to enable greater growth, said KHI.
On 15 February, KHI delivered 177,000-m3 LNGC Shinshu Maru to Trans Pacific Shipping 7 Limited, joint venture between JERA Co and NYK Line to transport LNG from Freeport LNG in Quintana, Texas, in the US.
Moving forward, KHI will further strengthen collaborative efforts with DACKS and NACKS, two of its joint-venture companies in China, to realise combined operations entailing joint purchasing and allotment of building operations. KHI hopes this will boost the competitive strength of its merchant vessel operations at Sakaide Works in Japan and other locations groupwide while meeting demand for constructing diverse ships from around the world.