overbuilding. Changes to the market for ships may also increase China’s market
share without causing undue downwardpressure on shipping rates. Industry
observers interviewed by the author have indicated that Japanese heavy industrial
firms are considering making a gradual exit from shipbuilding. This would open
market share for the Chinese, possibly allowing them to accelerate their construc-
tion efforts without overbuilding.Benefits for Other Maritime Industries
As its need for seaborne oil imports grows, China is also expanding its port
facilities and onshore oil handling infrastructure. China is quickly developing
large deepwater facilities that can better accommodate the large tankers that haul
its oil imports from Africa and the Middle East. In 2005, only three ports—
Qingdao, Zhoushan, and Shuidong—could accommodate tankers displacing
200,000 DWT or more. Consequently, China is rapidly preparing specialized
facilities to handle large energy/oil tankers, especially in major ports on China’s
southeast coast. Ningbo is undergoing harbor enlargement to accommodate
200,000 DWT ships, while Zhoushan andQuanzhouportsareconstructing
platforms to accommodate 250,000 DWTtankers. After these projects are
completed, Qingdao, Ningbo, Zhoushan, Quanzhou, Maoming, and Shuidong
will all be able to accommodate 200,000–250,000 DWT tankers.^25
To further facilitate the transport of energy within the country, Chinese
analysts recommend rapidly upgrading China’s oil transport system of pipelines,118 Asia Looks Seaward
Figure 6.3 PRC Shipbuilding Production by Deadweight, 1982–2009.Source:Lloyd’s Sea-Web.