Sunday, May 10, 2009

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Shipbuilder eyeing power sector

VNECONOMY
The Vietnam Shipbuilding Industry Group (Vinashin), which has recently signed big contracts to build ships for foreign partners, is now planning to make investment in power plants, which seems to have no close links with the shipbuilding industry.
Vinashin has submitted to the Ministry of Industry the report on its plan to make investment in power plants with the total capacity of 8,000 MW.
In its development strategy, Vinashin plans to upgrade and expand existing factories, while building new shipyards in new places. In the future, industrial zones (IZ) for shipbuilding industry will take shape in three regions, the north, central region and the south, including Cai Lan IZ in Quang Ninh, My Trung (Nam Dinh), Dung Quat (Quang Ngai) and Soai Rap (Tien Giang).
A lot of factories and workshops producing parts serving the shipbuilding industry are being built in the IZs. The competitiveness of Vietnam’s shipbuilding industry depends much on input materials like steel and diesel engines, which, in turn, depend on electricity sources.
Vinashin thinks that one of the most important things it needs to do now is to develop power plants which would allow it to provide stable electricity and at reasonable prices. The total electricity output Vinashin needs in 2007-2015 is 8,300 MW to serve the shipbuilding industry.
There are several factors Vinashin considers as big advantages in implementing power projects.
First, the group plans to raise the localisation ratio of its products to 60% by 2010. In order to reach that end, Vinashin has been making heavy investment in its mechanics manufacturing, which, Vinashin believes, can help it in designing power plants.
Second, Vinashin’s IZs are all located near the coal and mineral exploitation area, as well as big rivers, which would make the providing of materials to power plants more favourable.
The power plants Vinashin plans to build include:
1. coal-run thermopower plants: Hau Giang (3 x 1,200MW), Hai Ha (3 x 676 MW + 2 x 150 MW), Song Hong (3 x 65MW), and Ninh Thuan (2 x 600MW).2. engine-run thermopower plants: Dung Quat-Da Nang (8 x 12,5 MW), Soai Rap (10 x 12,5 MW), Khanh Hoa – Nha Trang (220 MW).3. Hydrpower plants: Tram Tau (Yen Bai, 22MW)4. Wind power plants: one in Quy Nhon City in Binh Dinh province in the central region (40 x 600KW).
It is clear that the investment in a series of power plants which have the total capacity of 8,000 MW will require a huge sum of capital. On average, the investment capital for 1 MW is $1mil for thermopower, while the figure is even higher for hydropower. Experts have estimated that Vinashin will have to budget some $8bil to develop power projects by 2015. The amount of capital for power projects turns out to be much higher than the investment capital for the shipbuilding industry, the main production field of Vinashin.
Experts have warned that such a huge sum of capital will be very difficult to come by. The Electricity of Vietnam (EVN), which has been focusing on the electricity sector, has created only 8,000 MW in the last ten years, from 1996 to 2007.
It seems to be a tendency now in Vietnam that big economic groups try to do business in many fields. EVN, for example, has decided to invest in telecommunications, while the shipbuilding corporation wants to invest in the power sector. If the Vietnam Steel Association had similar arguments as Vinashin, it would also make investment in power projects, which would provide power to run its steel mills.
In its reply, the Ministry of Industry has asked Vinashin to provide detailed reports on the conditions for implementing the projects, capital arrangement solutions, and other information for the ministry’s consideration.
Source: VietnamNet

Fabricius cuts first shipbuilding deal with Vinashin

Mitsubishi licenses marine engine technology to Vinashin.
(SGT-HANOI, HCMC) Denmark’s ship-owner Fabricius BR Marine has inked its first shipbuilding contract with Vietnam’s shipbuilder Vinashin, adding Vietnam as the first country in Asia to the company’s order list besides Europe. Fabricius and Vietnam Shipbuilding Industry Corporation (Vinashin) yesterday signed a US$5 million deal to construct a 2,500 DWT vessel. The 1,600-HP and 67-meter-long vessel will be delivered by Vinashin in early 2007. The signing ceremony took place during a three-day visit of top executives and sales managers from 15 major Danish companies and three finance institutions to discuss cooperation with Vinashin and the national shipping company Vinalines. The contract for a small-size vessel marks the first start for Fabricius’ full commercial term in Vietnam, said John Schlotfeldt, managing director of Sea Saigon Shipping Ltd., Fabricius’ joint venture in Vietnam. He told the Daily that Fabricius would finalize another “big project” with Vinashin. The second contract, with a total value of around US$120 million, is for Vinashin to build six medium-sized vessels of “new design and high speed”. Each vessel is about 120 meters long with 12,500 DWT. “We hope to finalize the agreement in the beginning of next year,” Schlotfeldt said. He added that the company was also planning to set up a Danish maritime school with support from the Denmark Embassy in Vietnam, aiming at developing the company’s current seamen resource of 150 people to around 1,000 in the coming years. Danish Ambassador Peter Lysholt Hansen said at the signing that Vietnam’s shipbuilding industry, with an annual growth rate of over 30%, is presenting a “very good business” for suppliers, consultants and shipping lines in Denmark where shipping is the second largest industry after agriculture. Denmark’s Industrialization Fund for Developing Countries (IFD), which has injected around US$75 million in 13 different projects in Vietnam, is also planning to invest in some new shipping projects next year. Vinashin’s capital need in the next five years is estimated at around US$3 billion. The company has completed negotiations on shipbuilding contracts for the next five years with a total value of US$1.5 billion. Part of this investment will come from the US$750 million fund raised from the government’s first bond sale in New York early this month. * Japan’s Mitsubishi Heavy Industries, Ltd. (MHI) has signed an agreement under which it will license its UE low-speed diesel engine technology to Vinashin. With the signing, MHI aims to promote further penetration of its UE engines into the Vietnamese shipbuilding industry, which is expected to grow rapidly amidst the current boom in international shipping, according to the press release issued by MHI. Nguyen Quoc Anh, deputy general director of Vinashin, said that under the agreement, MHI would provide Vinashin with the licensing rights to manufacture its large-sized diesel engines. The contract applies specifically to the Mitsubishi UEC-LA, LS, LSII and LSE engines. The 2005-2014 licensing agreement also encompasses the marketing and servicing of these engines in Vietnam. Moreover, Mitsubishi will offer training for Vinashin experts in design and assembly so that the shipbuilder can start assembling the first engines late next year. Anh added that this was Vinashin’s second project for the manufacturing and assembly of large-sized marine engines, the first being with Denmark’s MAN B&W. Mitsubishi UE engines will be the largest engines manufactured in Vietnam, with an output capacity of 23,000 kilowatts, and will be supplied to local shipbuilding factories and exported, said Anh. By NGOC MAI and YEN DUNG/saigontimes

Largest car and truck carrier calls at Port Rashid (Staff Report)

Dubai: The world's largest pure car and truck carrier (PCTC) called at Port Rashid, the port operator said. The 228-metre long vessel Asian Empire has a total carrying capacity of 7,920 units. Owned and operated by Eujor Car Carriers of South Korea, the Asian Empire is under the UAE agency Diamond Shipping Services, while regional operations are overseen by Eukor Dubai. "The vessel called at Port Rashid on its maiden voyage. The high-quality infrastructure, facilities and equipment at the terminal ensured smooth and efficient handling of the vessel," DP World UAE said in a statement. "The rapid growth in the automotive sector due to the growing number of commuters within the region, as well as the upsurge in construction projects has created a demand for PCTCs such as the Asian Empire," Mohammad Al Muallem, senior vice-president and managing director of DP World UAE said. "We expect to receive more vessels of this size and capacity as we have been preparing our facilities to keep pace with the industry demands and advancements," Muallem said. The vessel was stretched at the Hyundai Mipo Vinashin shipyard in Vietnam. A 28-metre midsection was manufactured and after a surgical incision which cut the vessel into two pieces, the section was inserted and welded into place. The elongation has increased the vessel's capacity by 20 per cent, or 1,200 units, from 6,720 units to 7,920 units. A sister vessel, the Asian Majesty, is scheduled at Hyundai Mipo Vinashin for a similar elongation.

Shipbuilder eyeing power sector

The Vietnam Shipbuilding Industry Group (Vinashin), which has recently signed big contracts to build ships for foreign partners, is now planning to make investment in power plants, which seems to have no close links with the shipbuilding industry.
Vinashin has submitted to the Ministry of Industry the report on its plan to make investment in power plants with the total capacity of 8,000 MW.
In its development strategy, Vinashin plans to upgrade and expand existing factories, while building new shipyards in new places. In the future, industrial zones (IZ) for shipbuilding industry will take shape in three regions, the north, central region and the south, including Cai Lan IZ in Quang Ninh, My Trung (Nam Dinh), Dung Quat (Quang Ngai) and Soai Rap (Tien Giang).
A lot of factories and workshops producing parts serving the shipbuilding industry are being built in the IZs. The competitiveness of Vietnam’s shipbuilding industry depends much on input materials like steel and diesel engines, which, in turn, depend on electricity sources.
Vinashin thinks that one of the most important things it needs to do now is to develop power plants which would allow it to provide stable electricity and at reasonable prices. The total electricity output Vinashin needs in 2007-2015 is 8,300 MW to serve the shipbuilding industry.
There are several factors Vinashin considers as big advantages in implementing power projects.
First, the group plans to raise the localisation ratio of its products to 60% by 2010. In order to reach that end, Vinashin has been making heavy investment in its mechanics manufacturing, which, Vinashin believes, can help it in designing power plants.
Second, Vinashin’s IZs are all located near the coal and mineral exploitation area, as well as big rivers, which would make the providing of materials to power plants more favourable.
The power plants Vinashin plans to build include:
1. coal-run thermopower plants: Hau Giang (3 x 1,200MW), Hai Ha (3 x 676 MW + 2 x 150 MW), Song Hong (3 x 65MW), and Ninh Thuan (2 x 600MW).2. engine-run thermopower plants: Dung Quat-Da Nang (8 x 12,5 MW), Soai Rap (10 x 12,5 MW), Khanh Hoa – Nha Trang (220 MW).3. Hydrpower plants: Tram Tau (Yen Bai, 22MW)4. Wind power plants: one in Quy Nhon City in Binh Dinh province in the central region (40 x 600KW).
It is clear that the investment in a series of power plants which have the total capacity of 8,000 MW will require a huge sum of capital. On average, the investment capital for 1 MW is $1mil for thermopower, while the figure is even higher for hydropower. Experts have estimated that Vinashin will have to budget some $8bil to develop power projects by 2015. The amount of capital for power projects turns out to be much higher than the investment capital for the shipbuilding industry, the main production field of Vinashin.
Experts have warned that such a huge sum of capital will be very difficult to come by. The Electricity of Vietnam (EVN), which has been focusing on the electricity sector, has created only 8,000 MW in the last ten years, from 1996 to 2007.
It seems to be a tendency now in Vietnam that big economic groups try to do business in many fields. EVN, for example, has decided to invest in telecommunications, while the shipbuilding corporation wants to invest in the power sector. If the Vietnam Steel Association had similar arguments as Vinashin, it would also make investment in power projects, which would provide power to run its steel mills.
In its reply, the Ministry of Industry has asked Vinashin to provide detailed reports on the conditions for implementing the projects, capital arrangement solutions, and other information for the ministry’s consideration.
Source: VietnamNet