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[BUSINESS] China move boosts local shipbroking

The Young Reporter (1979, May 01), 11(12), pp. 3.
Author: Ricky Mak.
Permanent URL - https://sys01.lib.hkbu.edu.hk/bujspa/purl.php?&did=bujspa0006321

By RICKY MAK

LOCAL ship-brokers and shipyards are sailing on a prosperous course, thanks to the favourable influences of China’s modernisation programme.

China has recently purchased more ships from Hongkong — especially those second-hand — because local workers using advanced technology maintain efficient ships, said Muu Poulsen, manager of Maersk Line (HK) Limited. Also Hongkong is close and that make deals easier.

Local ship-repair yards are doing better business last year because of China’s modernisation move, a spokesman for Maersk Line’s Service Department added.

The spokesman said most of China’s orders are for merchant ships of 6,000 to 10,000 tonnage.

China’s interest in second-hand ships is boosted by the relatively low prices and the short delivery time, said Ms Rosa Ho, public relations officer of Hongkong United Dockyard.

The present prosperous outlook, nonetheless, can be upset by keen competition from neighbouring countries like Taiwan, Korea, Singapore and Japan, cautioned Ms Ho.

“But, local technology has undergone constant improvement and is now able to compete with Japan on an international level,” she said.

She noted the repair work on the Queen Elizabeth II, which took only three days, as a typical example of local efficiency.

Most of the ship-repair work is on vessels from China, Britain and Greece. The size of the ships range from ocean liners to small leisure craft and sometimes includes deep-sea trawlers, said Ms Ho.

The labour shortage, which threatens many local industries, is not such an acute problem for local ship-repairers because there are sufficient trained staff from the two universities and Hongkong Polytechnic, said Ms Ho.

However, the Executive Director of Chung Wah Ship-building and Engineering Company, Peter Wong, says the probable oil shortage, inflation and a latent manpower shortage are factors that local ship-brokers must consider.

While the Mass Transit Railway construction has taken away considerable number of technicians and engineers, the present oil crisis has raised cost production drastically, said Wong.

Inspite of recent incentives from China, some local medium-sized ship-repairers have not been benefited.

A spokesman from the Hop Hing Marine Engineering Limited said competition is so tough on the local scene that smaller ship brokers are facing difficulties.

Speaking on future trends, Muu Poulsen from the Maersk Line said Hongkong should concentrate on specialised repair work because it can ensure greater profits and attain a strong competitive edge over Southeast Asian countries.

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