?K? Line invest in Chinese ship repair yard

Kawasaki Kisen Kaisha, Ltd. (“K” Line) in Japan has signed a ship repair joint venture agreement with Hanjin Shipping and Shunhe Shipping of Zhejiang Eastern Shipyard Co., Ltd. (ZESCO), a shipyard in Zhejiang Province, China, by accepting ZESCO?s increase capital for third parties together with Shanghai Changjiang Shipping (Sinotrans group).

ZESCO is located in a northern part of Zhoushan islands occupying total area of 550,000m2 with 1,900m length of shoreline. It has capacity for 150 vessels per year, is equipped with two large graving docks (one of which can accommodate 300,000dwt class VLCC or VLOC and the other can accommodate Capesize), hull workshop (13,000m2), one repair berth, paint workshop and mechanical-electrical workshop.

In addition, ZESCO plans to construct a second repair berth and third graving dock. The graving dock facilities and one repair berth were completed and full operation started in early April 2009. So far, 24 vessels have already docked at ZESCO and another 16 vessels are expected to dock by the end of this year.

“K” Line secures certain repair slots at ZESCO as a main shareholder and user. ZESCO is located very conveniently near Shanghai Yangshan and can accommodate all kinds of vessels without any narrow navigation restriction on the river. “K” Line?s participation in ZESCO means that it obtains core repair slots for increasingly large-size vessels.

A similar arrangement was made back in August 2008 when “K” Line became a strategic partner in ship repair business with Titan Quanzhou Shipyard Ltd. (TQSL) under construction in a suburb of Quanzhou City, Fujian Province. Through these two projects, ZESCO and Titan, “K” Line will cooperate with owners in regards to bookings at the two dockyards. This will place “K” Line in an even better position to pursue enforcement of its safety policy and stable quality of ship management.

In October 2009, “k” Line also established a consultant company ?Shanghai Brainy-Kawasaki Maritime Service Co., Ltd (SBK)’ which provides full support when vessels dock in the two Chinese dockyards.