CSISC challenges V-Ships

China’s largest ship-management company plans to launch a global challenge to its competitors. “Our purpose is to catch up with the world’s largest V-Ships Company,” said Wang Xiangyun, Party secretary of the newly established China Shipping International Ship management Co Ltd (CSISC).

CSISC is aiming to manage several hundred ocean going ships by 2010, thereby becoming one of the world’s largest ship management companies with the capability of challenging V-Ships by putting some 600 ships under its management. “It is not an easy job but we are confident,” Wang said.

CSISC, launched by China Shipping Company (CSC), is a merger of companies in Guangzhou, Shanghai and Dalian. “Setting up such a company is part of CSC’s strategy to developed new businesses in the next five years, turning our company into the world’s first-class shipping company,” said Li Kelin, president of CSC.

Li, also chairman of CSISC, said the newly established company currently manages 76 ships, including 20 from the United Kingdom, the United States, Japan, Russia and Hong Kong. Wang said the next step is to manage CSC’s own 400 ships to enlarge its business.

He said CSC has worked out a strategic development programme for 2010, that requires its tanker company to become one of the world’s top 10, its dry cargo company number one in China and its special vessel company one of the world’s top companies.

They are finding difficulties in expanding their container fleet which will include eight 9,600TEU ships due for delivery in 2006. The shipping company, which now has about 115 container ships, has recently put five 8,500TEU vessels built in South Korea into service. New orders have just been placed for five more boxships from Shanghai Hudong Shipyard and the Shanghai Zhonghua Shipyard for delivery before 2007.

This expansion strategy, Wang said, indicates that China Shipping is in urgent need of quality sailors for the burgeoning fleet. Ship management is underdeveloped in China due to its antiquated system that does not allow a free-flow of sailors. CSISC, with a registered capital of $60 million, is an initial attempt to train skilled sailors. At present, CSISC utilizes about 4,000 sailors abroad annually but these, however, fall far short of meeting the growing demand. The company plans to increase its staff of sailors by 500 students annually in the next two years.