Waigaoqiao sets new delivery record

Shanghai Waigaoqiao Shipbuilding (SWS) has become China’s first shipbuilder to deliver more than 2 million deadweight tonnes in a year after it recently handed over a 175,000 dwt Capesize bulk carrier. Waigaoqiao has delivered ships of 2.06 million dwt this year, following its record 1.7 million dwt last year.

Overseas shipowners have placed orders of 4 million dwt with SWS this year and the yard now holds orders totalling more than 7 million dwt, which will keep it fully occupied until 2008. However, with growing tonnage and orders, Waigaoqiao is facing a bottleneck in the short term as its current facilities give the shipbuilder limited room to expand its capacity.

Waigaoqiao launched its second phase expansion costing 1.2 billion yuan ($148 million) in April, which is expected to be completed in three years. By then the shipyard’s annual production capacity will rise to more than 2.6 million dwt.