Excellence on Board - Marine Engines Caterpillar

Caterpillar Marine Power Systems Edition No 80
<strong>Excellence</strong> on Board
2005

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Diesel Engine Journal for our Business Friends
January 2006 No 80
Contents
3 Marintec 2005: Caterpillar presents itself at top
shipbuilding fair in Asia
4 Caterpillar Marine Asia Pacific: Well-positioned
with increasing sales in the Chinese shipbuilding
market
5 Forging ahead in the race for leadership:
Shipbuilding as one of China’s key industries
9 The Big Leap onto the Sea: Admiral Zheng He –
China’s great Explorer
12 Enhanced performance and shorter delivery
times.: MaK M 25 with 330 kW cylinder output
assembled in Germany and China
13 Fujian Mawei Shipbuilding Ltd.: The fount
of the national shipbuilding industry
15 Wuhan Nanhua High-Speed Ship Engineering,
Co. Ltd: A leader in the design and building of
high-speed ships in aluminum in China
16 Sinopacific Heavy Industries: Private enterprise
shipbuilding group with focus on international
customers
17 Environmentally friendly: Caterpillar’s new
compact C Design Genset Family
20 Effective network all over the country:
The Caterpillar Dealer Organization in China
24 Seen en route: Shanghai – a fascinating centre
with a rich history
Cover photo: Shanghai: a fascinating centre with booming
shipping industry (Cover photo left side: © corbis; Cover photo
right side: caro fotoagentur)
Impressum
Published by: Caterpillar Marine Power Systems,
Neumühlen 9, 22763 Hamburg
Edited by: Hans-Jürgen Homeyer,
Sales Promotion/Public Relations,
Marketing Support, Kiel 0431 3995-2686
Printed by: HB-Drucke Brackmann GmbH, Löhne
Reprints in whole or part permitted only with due acknowledgement.
File copy requested.

Marintec 2005
Caterpillar presents itself at top
shipbuilding fair in Asia
The shipbuilding trade fair Marintec
China in Shanghai has
developed rapidly in line with
the swift expansion of the Chinese
shipbuilding industry in recent years.
The fair, staged in December every two
years for the last 24 years, was held
in Shanghai New International Expo
Centre (Pudong) for the second time in
2005. The event has registered aboveaverage
growth rates and become a
magnet for international exhibitors
and visitors.
According to the organisers, over
27,000 sq.m. of exhibition space was
occupied in three trade fair halls last
year, an increase of 40% compared
with two years ago. As many as 1,034
maritime companies from 28 countries
and regions, including numerous
firms whose trade fair presentation
was organised in one of the
overall 15 national pavilions, presented
their products and services in
the centre of the world’s fastest-growing
shipbuilding market. The organisers
also reported significant growth
of as much as 25% compared with the
previous event in the number of registered
visitors, which rose to 30,097,
including close on 3,000 persons from
abroad.
The fair was accompanied by the
Senior Maritime Forum dealing with
the subject “New trend of shipping
industry & new development of shipbuilding
industry in the present world”
and a CIMAC Circle with a two-hour
panel discussion on “HFO operations –
its impact on engine reliability and
emissions”. The impressive response,
confirmed by the over 100 participants,
who engaged in lively expert
discussions, underlined the sector’s
interest in the subjects offered as well
as Marintec generally.
With 88 exhibitors, the marine equipment
suppliers from Germany contributed
the largest national pavilion of
the 15 foreign joint presentations. The
very dedicated and successful German
participation in the leading Asian maritime
fair also shows that for marine
equipment suppliers in particular a
strong local commitment
is an indispensable prerequisite
for withstanding
the increasing competition
from suppliers from South
Korea, Japan and China and
in this way ensuring a high
export share. The companies
benefit not only from
providing highly sophisticated
technology, but also
from a highly developed
market presence in the sales
and service area, which
has to be consolidated or
expanded. Another factor is
the realisation of local content,
which is required particularly
in these markets.
Impressive presentation of
Caterpillar Marine Power Systems
This requirement has also been
appreciated by Caterpillar Marine
Power Systems (CMPS), which presented
itself accordingly with a spacious
and invariably very well visited
stand, giving national and international
experts the opportunity to inform
themselves comprehensively about
the entire Caterpillar engine range for
maritime applications. This currently
encompasses an output range of 11 to
16000 kW and is structured in the Cat
product line, comprising:
■ Fast and medium-speed propulsion
engines with an output from 93 to
7200 kW,
■ Auxiliary diesel engines developing
162 to 5420 kW as well as
■ Complete gensets developing 11 up
to 5200 kW(el) and
in the family of the medium-speed
MaK diesel engines with outputs from
1020 to 16000 kW, installed as both
main propulsion plant and auxiliary
diesel engines. To provide expert information,
the stand was manned with
top-ranking contact persons of Caterpillar
Marine Asia Pacific from the
Shanghai Headquarter as well as from
the regional organization located
in Singapore and representatives of
In the spotlight
The attractive CMPS stand with a 9 M 25 engine as
main exhibit in the foreground
leading Chinese Caterpillar dealer
organizations such as Lei Shing Hong
Machinery Ltd, WesTrac China Ltd, The
China Engineers Ltd and ECI-Metro
Engineering Machinery Service Co. Ltd
as well as other Asian dealers for various
market areas.
The 2970 kW MaK 9 M 25 weighting
30 t produced at the engine plant
Caterpillar Motoren Guangdong was
a central exhibit and an eye-catcher
attracting interest from the experts.
This unit will be installed as the main
propulsion plant of a coastal motor
ship for Zhejiang Aoli Shipping Co. Ltd
at Linghai Hongsheng Shipbuilding
Co. Of China. The Cat 3512B exhibited,
intended as propulsion system for a
USV (Utility Support Vessel) under
construction at Guangzhou Panyu
Lingshan, also attracted a great deal of
interest.
CMPS’s well-balanced press conference,
attended by numerous representatives
of the international
specialist press, also reflected the significance
of the fair for the company.
This information event focused on
new technologies for Cat and MaK
engines designed for maritime deployment,
such as electronic control and
extended maintenance intervals and
even complete propulsion solutions,
as well as an overview of activities in
the highly dynamic Chinese shipbuilding
market.
3

Caterpillar Marine Asia Pacific
Well-positioned with increasing sales
in the Chinese shipbuilding market
On the occasion of the 13th Marintec
China shipbuilding fair in
Shanghai, Caterpillar Marine
Power Systems reviewed its successful
sales and service activities in the
Chinese shipbuilding market. The managing
director of the Shanghai-based
Caterpillar Marine Asia Pacific organization
responsible for this market,
Florian Gruber, emphasized the ongoing
growth and extremely favourable
development of business relationships
with leading Chinese shipyards
and shipping lines since the establishment
of the first representative office
in 1989.
Caterpillar Marine Asia Pacific focuses
in particular on the fast-growing shipbuilding
market in China, as indicated
by the location of its headquarters in
the shipbuilding centre of Shanghai.
“In addition to serving this booming
environment, we also have to develop
further or enter other important and
partially new markets such as Korea,
India, Indonesia and Vietnam, the latter
having come into the spotlight very
recently,” explained Florian Gruber in
describing the strategic orientation
of Caterpillar Marine Asia Pacific. The
founding of this organization in 2000
was thus a logical decision on the part
of Caterpillar Marine Power Systems in
response to the increasing shift of shipbuilding
production from Europe to
Asia. With branches in Shanghai, Singapore
and Melbourne and other service
teams in Tokyo and Bangalore, it
has created an effective network for
customer-oriented service in the Asian
region. The reorganization of the formerly
decentralized market activities in
connection with the strengthening of
the local presence within a very short
time had the desired effect. Between
1998 and 2005, the share of MaK
engines sold in the area covered by Caterpillar
Marine Asia Pacific grew to an
above-average extent compared with
the company’s global activities.
Caterpillar Marine Asia Pacific covers
the company’s entire product range:
4
from small engines of the Caterpillar
brand for leisure craft, small fishing vessels
and work boats, marketed respectively
by the Caterpillar dealer network,
to installations for oceangoing merchant
ships, fast ferries with aluminium
hulls and the medium-speed MaK
diesel engines, as well as large MaK
VM 43 plants installed as propulsion
engines in bulkers and MaK VM 32 C
gensets for Chinese FPSO units.
In its main field of operation, comprising
regional marketing and product
service, Caterpillar Marine Asia Pacific
can rely on the:
■ Caterpillar Dealer Support Group
■ MaK Direct Sales Group
■ Application Installation and Service
Group
Dealer Support Group The Dealer Support
Group formulates general marketing
strategies and offers assistance
with technology, particularly for the
maritime structures within the dealer
organizations, a special focus being
coordinating the cooperation between
the individual dealers across various
areas. Working closely together as a
team, the Dealer Support Group and
the regional Caterpillar dealers have
been able to win a large number of
important orders.
MaK Direct Sales Group Within Caterpillar
Marine Asia Pacific, the MaK
Direct Sales Group is responsible for
marketing the entire product range
of medium-speed MaK engines. This
involves the sale of these engines to
the regional shipyards and increasingly
also to Asian shipping lines and
shipowners, with marketing activities
ranging from product presentation to
preparing offers and technical discussions
with customers in the project
phase and handling current orders.
Essential to further sales growth
in the Chinese market is the engine
production in the facility of Caterpillar
Motoren Guangdong Co. Ltd. in
Shunde City. By building the MaK M 25
in China delivery times, time and effort
required for marine society acceptance
as well as transportation times for
regional customers will be significantly
reduced. A large number of propulsion
engines and gensets for installation
in ships as well as gensets for electricity
generation in land based power stations
have already been produced at
Caterpillar Motoren Guangdong Co. Ltd
or its legal predecessor.
It is intended to boost production
considerably this year to meet the
increasing demand for M 25 engines in
both the Chinese and the international
market.
Application Installation and Service
Group Service and customer satisfaction
are, as Gruber emphasizes, given
top priority within Caterpillar Marine
Asia Pacific. To meet this requirement,
the Application Installation and Service
Group is responsible for the specific
project-related mechanical and electric
design features and the commissioning
and maintenance of MaK engine
plants. The interdisciplinary team of
engineers and technicians can rely on
sound expertise and extensive experience
in the area of European engine
production and the Asian production
method of the shipyards. Its skills
are constantly expanded and updated
with the comissioning of over 100
units annually.
A team within this group has also
specialized in the sale of spare parts.
Good cooperation within multinational
team Florian Gruber attributes
the remarkable performance of Caterpillar
Marine Asia Pacific primarily to
the good teamwork with the European
and American partners of the global
Caterpillar organization as basis for
the commitment of the local employees,
who have their roots mainly in the
specific cultural environment in which
they are active and also have excellent
contacts with the international maritime
market.

Forging ahead in the race for leadership
Shipbuilding as one of
China’s key industries
The 21st century will not be the
American century,” the former Chinese
vice premier and foreign minister
Qian Qichen recently remarked,
thus indirectly suggesting that it could
definitely be a Chinese century. The
USA is, of course, still the unchallenged
superpower and will surely remain
so for some time. But the balance of
power in the world is beginning to shift,
due very much to the emergence of the
People’s Republic of China, which is
making great efforts in all areas, politically,
economically and also militarily,
to achieve at least equal status with
the USA. It looks as if the “Middle Kingdom”
is all set to achieve this goal.
China is currently reaping the rewards
of its long-standing reform policies and
could also chalk up impressive economic
growth of 9% last year. However,
it is also grappling with the formidable
structural and social problems
of an emerging economy. Growth is
essential to reduce the tensions building
up particularly as a result of the
huge gulf that has developed between
the rich coastal regions and the still
impoverished interior of the country, as
reflected in the massive migration of
the poor land population to the mushrooming
industrial centres on the coast.
However, the government has meanwhile
applied the brakes determinedly
in some economic sectors especially in
the second half of 2004 to ward off an
overheating of the booming economy.
Yet foreign companies and investors,
particularly after China’s accession
to the WTO, hope to see a further
deregulation of markets, along
with additional incentives for business.
For example, the position of the
German machine and plant construction
sector vis-à-vis the local competition
has clearly improved with the
reduction in the average customs rate
to 9%. However, for shipbuilding this
is of rather less significance in view of
the customs exemption for oceangoing
ships, although this could change
in future with the developing local
market. The new foreign trade legislation
announced in mid-2004 and
taking effect from December 11th last
year will also open up further opportunities
for foreign companies in China.
Officially, the People‘s Republic is
still a “one-party state”, and nothing
will change in this respect in the foreseeable
future. But, as it is sarcastically
noted in China itself, although
there are now 92m party members,
there is no longer a single communist
among them. Today there are men in
China who have worked their way up
to become billionaires within just a
few years, yet are or have remained
esteemed members of the party. Such
typically Chinese pragmatism is probably
one of the secrets of China’s economic
success.
New design of a 4100 TEU Containership for Chinese owner
Despite all the tensions in their society,
the Chinese generally are full of
optimism, as visitors to the country
can confirm. Most Chinese welcome
the cautious steps towards the
“little freedoms” such as foreign travel,
free choice of occupation and earning
money and duly appreciate these.
In the spotlight
They create perspectives for the people
themselves and also for foreigners who
already have business interests in China
or intend to take the plunge. Napoleon
is supposed to have once said: “When
China awakens, the world will tremble.”
Overlooking the trembling of the military-minded
Corsican conqueror, if this
means that when the Chinese dragon
awakens the world will change, we can
experience its entry on to the world
stage in a truly dramatic fashion.
Shipbuilding given high priority
Shipbuilding is one of the key industries
for Chinese economic policy
makers, who therefore give high priority
to promoting this sector. That is
shown by the fact that China alongside
South Korea and Japan currently leads
the booming world shipbuilding markets.
But while South Korea has overtaken
its competitor Japan for some
years running to become the no. 1 shipbuilding
country, the sector in China
is still emerging despite all the success
it has achieved to date, although it
already shows enormous potential and
indeed looks as if it will be able to outperform
Korea in the foreseeable future.
Absolutely no secret is made of the
fact that this is the aim of the efforts
being taken in this sector, as the year
5

2015 has been quite officially set as the
target for achieving leadership with a
long-term strategy and reorganization
of the industry. China wants its shipyards
to claim as much as 50% of the
entire global shipbuilding market by
2050. That is admittedly an extremely
ambitious goal, but when you consider
the bulging order books and the massive
investments in existing and new
shipyards, China looks all set to take the
wind out of the sails of the other shipbuilding
countries. There have recently
been contradictory statements, however.
Top-ranking representatives of
the “Commission of Science, Technology
and Industry for National Defence”
have expressed the hope that China
will be the leading shipbuilding country
in 2020. Clarkson cites government
circles as making similar announcements,
the background to this probably
being more realistic assessments
that the Japanese and Korean competition
are hardly likely to give up without
a struggle and have also run up considerable
overcapacities.
It is worth noting that the output
of Chinese shipbuilding overtook the
entire production of the then 15 EU
countries for the first time in 2004. The
report of the classification society Germanischer
Lloyd (GL) for the same year
stated: “The Area China is still one of
the fastest-growing markets for Germanischer
Lloyd; with the order boom
in newbuilding classification, the share
of the vessels to be built at Chinese
shipyards already accounts for about
15% of the world order level; according
to experts, China will be the world‘s
leading shipbuilding country by 2015.
At the end of 2004, the order volume
of Germanischer Lloyd in China doubled
compared with the previous year
to 239 vessels totalling approx. 3.4m gt,
built at more than 30 yards; about 60
units (0.7m gt) were delivered with GL
class.”
The Chinese have colossal capacities
with a staggering total of 645
shipyards – and that is counting only
the yards that meet certain industrial
standards. Chinese shipbuilders pro-
duce vessels of almost all sizes, ranging
from tankers to bulk carriers, containerships
and Ro-Ro units and more sophisticated
special-purpose vessels for the
offshore sector
According to experts, the sudden
upsurge in newbuilding orders for Chinese
yards particularly since the beginning
of the new millennium with
growth rates topping 30% in some
cases is attributable mainly to the
advantage of low wage costs compared
with Japan and Korea. But capacity
bottlenecks in the traditional shipbuilding
countries have certainly also
played a role. A combination of both
of these factors has probably been
responsible for the success of Chinese
shipbuilding. It is also pointed out that
many Chinese shipyards meanwhile
also offer good quality and deliver on
schedule.
It has long since been impossible to
defend the old prejudice that China
can build only cheap standard ships
that cannot be compared with western
know-how and technology. China‘s
restructuring programme and comprehensive
investments have yielded dividends
and contributed to the good
quality of newbuilding production. It is
stated that this applies not only for the
newbuilding yards; there has also been
enormous growth in capacities and
orders in the repair segment. However,
shipbuilding in China is still a sector of
tremendous contrasts. It is true that
To built large containerships for the international market is one of the objectives of the Chinese shipbuilding industry
6
there are very efficient shipyards, but
there has also been no decline in the
number of poor performers. Above
all, there is the productivity level compared
with Japan and Korea: although
the Chinese have also made progress
in this area, they still have a great deal
of catching up to do. On the other hand,
this offers the opportunity to expand
capacities without having to invest
substantially in infrastructure.
Along with its aim of becoming the
leader in global shipbuilding in the
medium term, China puts just as much
importance on creating an efficient
marine equipment industry, initially
mainly in the area of marine propulsion
systems.
Basically, shipbuilding in China, even
outside the specified number of ship-

yards, is carried out wherever this is
possible, i.e. close to the water. In the
global market, however, shipbuilding
in China is crucially determined by two
large groups. These were established
in 1999 under a decision made in July
1999 by the State Council to pool activities
in a more effective form, decentralize
decision-making paths, keep
them controllable and put the industry
generally on a more competitive basis.
China State Shipbuilding Corporation
(CSSC) and China Shipbuilding Industry
Corporation (CSIC), each encompassing
dozens of company shipyards, research
institutes, repair companies, etc., were
thus founded. The Commission of Science,
Technology and Industry for
National Defence (COSTIND) is responsible
for the groups and the regulation
of shipbuilding generally.
Although these two conglomerates
are still state groups under the direct
control of the State Council, they have
become far more independent in economic
and operative terms. They integrate
R&D, marketing and production.
The aim is to establish some
sort of competition between the two
groups, despite their different focuses,
in order thereby to promote cost-efficiency
as well as innovations in products
and production. Key decisions
on, for instance, investment are taken
by the management of each of the
groups. The shipyards thus have no
autonomy themselves, although there
is less a competitive than a cooperative
relationship between the yards of
a group. The two groups were intended
to account for about half of Chinese
shipbuilding production, the other half
being provided by shipyards commissioned
by shipping lines as local companies
belonging to provincial or municipal
administrative bodies or even
private firms. However, the two conglomerates
still claim a market share of
60-70% and generally also have better
equipped facilities. Both are attempting
with different strategies to play
more of a role in the market for large
and high-tech ships.
CSSC is responsible for shipbuilding
in south China
CSSC Group includes shipyards in
south China focusing on Shanghai and
Guangzhou. It unites a total of 52 companies:
newbuilding yards, as well as
repair facilities, mechanical engineering
works and other marine equipment
suppliers, not to mention 36 research
and design centres, including Marine
Design & Research Institute of China
(MARIC) and Shanghai Merchant Ship
Design & Research Institute (SDARI).
The most important of the 25 yards of
this group are Jiangnan Shipyard, the
entirely new large shipyard Waigaoqiao
Shipbuilding, Hudong-Zhonghua
Shipbuilding active at three sites (to
which Shanghai Edward Shipbuilding
also belongs; the Hamburg company
Hansa Treuhand has a 49% share in
the latter), Guangzhou Shipyard and
Shanghai Shipyard. The group has an
overall workforce of approx. 95,000.
Shipbuilding production focuses on
the construction of merchant vessels
of all types up to 300,000 tdw. Naval
ships, offshore units and other specialpurpose
vessels are also delivered. The
A lot of Chinese Shipyards are specialised on bulk carriers
group is particularly proud of having
been commissioned to build the first
LNG carriers in China. These will have a
transport capacity of 147,000 cu m and
are to be built at Hudong-Zhonghua in
the large building dock of Hudong. The
group also has, as mentioned, Jiangnan
Shipyard in Shanghai, which calls itself
the oldest Chinese shipbuilding company.
Founded in 1865 at the time of
Ching Dynasty, Jiangnan Shipyard with
its about 10,000 employees is still one
of the leading shipyards for the construction
of merchant and naval vessels.
The latest newcomer to CSSC Group
is Waigaoquao Shipyard, which was
established within an impressively very
short time at a new location at the
In the spotlight
Yangtze river about 30 km from Shanghai
on an area of l.44m sq m with a quay
length of 1.1 km. Its two large building
docks for ships of up to 300,000 tdw,
equipped with 600t portal cranes, are
in operation. Its first newbuilding, the
175,000 tdw bulker “CSK Fortune”, was
already built in 2001-02 parallel to the
construction of the yard itself. Meanwhile
the second expansion stage is
about to be completed, enlarging the
overall area to 2.1m sq m. Production
capacity is given at 1.8m tdw annually.
One of the focal points of the production
is offshore business with the construction
of FPSOs and rigs.
And an even larger shipyard located
on the island Chingxin in the mouth
of the Yangtze has been planned and
is indeed already under construction.
The “working name” of this yard is also
derived from the name of the island. It
will have a quay length of 3.7 km and
four building docks for VLLCs and be
put into operation in 2007. After what
we have seen in China so far, this facility
will probably be completed on
schedule. In a second expansion stage,
the number of VLCC docks is to be
increased to seven and the quay length
to 8 km. Annual capacity will then
reach 8m tdw. Since this summer, however,
concerns about the creation of
overcapacities have been increasingly
expressed in government circles. But
this basically changes nothing to the
ambitious expansion plans of the Chinese,
although it cannot be ruled out
that there could be delays for some of
the new shipyard location projects.
7

Shipbuilding in the north is
controlled by CSIC
CSIC Group controls the shipbuilding
industry in north China. The most
important yards there include Dalian
Shipyard, Dalian New Shipyard, Bohai
Shipbuilding Wuchang Shipyard,
Shanhaiguan Shipyard and Quindao
Beihai Shipbuilding. Dalian Marine
Diesel Works and China Offshore Industrial
Corp. are very important among
the associated industrial companies,
while in the research area China Ship
Scientific Research Centre and China
Ship Research & Development Academy
are worth mentioning. Overall
shipbuilding operations at CSIC, whose
workforce is given at 160,000, account
for “only” about 65% of its total activities.
CSIC also runs 28 scientific and
technological research institutes with
360 specialist areas, in which 30,000
engineers and technicians work, as
well as six state laboratory centres, 150
large laboratories and four technology
centres. Moreover, CSIC is involved
in five regional companies engaging in
overarching activities e.g. in the area
of financing, offshore technology and
equipment. The ownership structure of
the shipyards in this area is not uniform.
CSIC generally holds over 50 percent of
the shares, the remaining shares being
held in a very few cases by private persons,
but mostly by asset management
companies and banks. However, the
central government often also exerts
considerable influence on the latter via
indirect holdings.
Dalian Shipyard, one of the oldest
shipyards in China, belongs to CSIC
Group. It celebrated its centenary in
2001 and now builds merchant ships,
mostly for export, as well as naval
and auxiliary vessels for the Chinese
navy. With its 400m long dock put into
operation in 2004, the yard is able to
build ships of 300,000 tdw and over.
On the other hand, Dalian New Shipyard,
located near Dalian, can meanwhile
deliver ULCC newbuildings of
up to 400,000 tdw and over. This yard
started operation in 1981 and was at
that time the first in China capable of
building ships of over 100,000 tdw. In
1999, it received, also as the first yard
in China, an order for the delivery
of VLCCs. National Iranian Tanker Co.
8
(NITC) ordered right away five 299,500t
units, the last of which was delivered in
2004. They were built in the 365m long
dock, which is equipped with a 900t
portal crane. The yard also has a slipway
for the construction of ships of up
to 150,000 tdw. Apart from large tankers,
the shipyard builds mainly containerships
and drilling rigs. With a rapid
expansion programme, the annual
capacity of Dalian New Shipyard is to
be boosted from its current 1.3m tdw
to 3.3m tdw up to 2009. The most visible
sign of this is the meanwhile completed
lengthening of the large building
dock to 550m.
Other shipyards with different
ownership structures
Outside the two groups CSSC and
CSIC, there are numerous shipyards
with different ownership structures.
For example, the two largest shipping
lines in China, China Ocean Shipping
Company (COSCO) and China Shipping,
also engage in shipbuilding and
shiprepairs. China Changjiang Shipping
Group, the largest river shipping line
in China based in Wuhan, also has its
own newbuilding and repair yards. It is
by no means the case that these work
only to cover their own requirements.
Moreover, China‘s coasts and rivers
are studded with countless small and
medium-sized shipyards that operate
independently of the large shipbuild-
Shipbuilding in China in 2004
m tdw
Deliveries: 8.55
Incoming orders: 15.79
Orderbook: 33.59
Incl. CSSC: 3.57
CSIC: 2.14
billion US$
Total exports: 3.158
Incl. Bulkcarriers, 66 ships: 1.055
Product tankers, 62 ships: 0.677
Containerships,28 ships: 0.399
Chemical tankers, 8 ships: 0.102
Oil tankers,3 ships: 0.184
Overall production: 10.900
Incl. Newbuildings: 7.400
Machines & equipment: 7.400
Ship repairs: 1.800
ing groups and shipping lines and are
very popular among foreign shipping
lines particularly for the construction
of small and medium-sized vessels.
Then there are various very small yards:
so-called “beach yards”, which have
proliferated particularly in recent years.
These are meanwhile strongly regulated
by the government, i.e., they are
being forced to close with the imposition
of regulations. The aim is to put a
stop to the runaway growth and above
all clearly improve safety standards.
The number of privately controlled shipyards
in China is not exactly known. We
can differentiate here between shipyards
of foreign or Chinese investors
and joint ventures, of which there are
meanwhile a very large number. Since
China‘s admission to the WTO, foreign
investors have also been able to acquire
a majority interest in or sole ownership
of enterprises.
Summary and
outlook
The promotion of the shipbuilding
industry as a strategic industrial
sector is generally of elementary significance
for the development of China.
Several goals are being pursued with
it: shipbuilding serves as an engine of
industrial development and the building
of complex industrial systems, creates
work for a large number of people,
earns considerable foreign exchange
and is important for supplying the
coasts and rivers of the giant country.
China has set itself the objective of
becoming the world‘s leading shipbuilding
country and is rapidly pursuing
this goal. Old shipyards in city areas
are being closed, and enormous new
capacities are being created by the
water with oceangoing ship depths.
There do not seem to be any financing
problems; obstacles in whatever shape
or form are simply brushed aside; and
the planning and construction periods
are totally beyond what we know
in Europe. The traditional shipbuilding
countries will have to come up with
some very bright ideas if they want to
survive in the increasingly competitive
global market. That applies not only for
Europe, but also above all for China‘s Far
Eastern competitors, which are still the
front-runners in world shipbuilding.

The Big Leap onto the Sea
Admiral Zheng He – China’s great Explorer
The People‘s Republic of China, i.e.
the China we are always talking
about in spite of all political subtleties,
is rapidly evolving to become
a global power, a great power. All economic
and political indicators prove
this and in spite of domestic problems
that are still to be overcome in China
there is hardly anybody who would
call this into question. However, what
is still missing to a large extent in this
huge country after centuries of isolation
– and this is something the leading
political forces have indeed realized
– is a widespread understanding
that high if not highest priority must
be given to creating a maritime component
in order to reach this goal. As
this understanding was gained, China‘s
own although very remote great maritime
history was being recalled.
This culminated in statements made by
the state leadership in the Great Hall of
the People in Beijing in the middle of
2005 that the world need not be afraid
of China as a sea power. In his speech
Huang Ju, member of the Standing
Committee of the Political Bureau, purposefully
stated that China was only
learning lessons from its history. Without
seafaring there was no development
and no global importance. As
proof of this statement the rediscovered
accomplishments of Admiral
Zheng He about 600 years ago were
mentioned. However, it was not only
the accomplishments of this extraordinary
man and explorer that were
ostensibly prized and thus acquired
new fame. It was rather the high level
of nautical science in the “Middle King-
Zheng He’s naval expeditions 1405-1433
Something about History
A foreign deputation presenting gifts to
the Chinese emperor
dom” embodied by him that was to be
illustrated and without which Zheng
He‘s accomplishments would not have
been possible. The signal was to tie in
with this and therefore numerous celebrations
and exhibitions took place
on July 11, 2005 to commemorate for
9

Model of one of the big nine-mast treasure ships
the first time the great expeditions of
Admiral Zheng He.
Zheng He was born in a period in
which China made all efforts to free
itself from Mongol rule that had lasted
about 100 years. Leader in this fight
was the later emperor Zhu Di, the first
of the new Ming Dynasty. Zhu Di had
conquered a big fleet from the Mongols
and after consolidating his rule
he immediately started to extend it in
a most generous way. Particularly outstanding
the among numerous newbuildings
were the nine-mast “treasure
ships” which owed their name to
the huge amount of goods they could
accommodate in their immense cargo
holds. 250 vessels of this type alone
are said to have been built. In addition
to these the fleet included 3,500 other
ships: War-ships and merchant
ships and also supply vessels carrying
grain, water, and horses.
An enormous fleet which, at the
behest of the emperor, was to sail
and map the seas and at the same
time impress and intimidate foreign
sovereigns in order to incorporate
them without hostilities,
“smoothly” as it were, into China‘s
tributary system.
In order to make all this happen,
the emperor purposefully promoted
the relevant sciences, especially
astronomy, because knowl-
10
edge of the movement of the stars
allowed relatively precise navigation
already in these times. It was not only
essential for the explorative course to
be steered, but even more so for safe
return of the fleets. At the centre of
all these activities was Admiral Zheng
He who had the special trust of the
emperor.
Zheng He, born in Kunming in 1371,
was one of thousands of Mongol children
who had been taken captive by
the Chinese when forcing back their
former rulers and castrated in order
to make them suitable for service “at
court” as eunuchs. In this service Zheng
He, whom they describe as an impressive
seven-feet giant, won the special
trust of Emperor Zhu who finally
The size of Zheng He’s flag ship in comparison
with Columbus’ ”Santa Maria”
entrusted him with the command over
enormous discovery fleets which at
that time were to demonstrate China‘s
dominance on the seas and notify this
to the rulers in more than 30 countries
they visited. And probably they succeeded
in doing so. But what was most
impressive besides sumptuous embassies
conveying precious gifts to foreign
rulers were probably the 142 m long
and 55 m wide “treasure ships” that
had awesome snake eyes at the bow
to scare off spirits and red silken sails
on their nine masts topped by numerous
gaudy pennants.
While the European discoverers and
conquerors who set out much later
mainly took possession of new territories
for their kings, which were then
heavily suppressed and exploited, especially
with a view to gold and spices,
the Chinese – although at the same
time displaying military power
with their fleets – not least undertook
scientific expeditions covering
such a wide scope that would
have unthinkable in the backward
Europe of that period. On board
there were hundreds of scientists
of the most different fields, ranging
from astronomers and botanists
to medics. In their researches
in the countries they visited they
were able to rely on the services
of specially trained interpreters

in order to be able to communicate in
Arabic, Persian, Hindi, Swahili and several
other languages. Also praised is
the religious tolerance of Emperor Zhu
Di and his Admiral Zheng He. Thus, the
voyages always included Buddhist,
Hindu, and Islamic scholars in order to
give help and advice to the believers of
the different religions if needed.
Also impressive are the logistic
achievements that were made in order
to provide the fleet with all that was
needed to cover its voyages which
often lasted as long as two years. Hundreds
of cartloads and boatloads were
necessary to bring sufficient fresh and
durable provisions, and that not only
for the people but also for the animals
on board. Huge quantities of drinking
water were filled into barrels and tanks
and also medical care had to be ensured
by means of sufficient supplies.
Equally impressive and far ahead of
European maritime endeavours at that
time was the composition of the fleets
when they set sail to demonstrate China‘s
greatness in remote countries,
undertake scientific studies, and make
political connections. Their food and
water supplies were sufficient to allow
them to remain at sea for more than
three months and cover a distance
of at least 4,500 nautical miles without
having to replenish them. They
were accompanied by their own grain
ships and water tankers. Dedicated
horse ships conveyed the mounts for
the embarked cavalry. And yet one
more thing, the big ships included
an innovation that was discovered
by European seafarers only centuries
later: They were subdivided into
16 compartments that were inspired
by the multi-chambered structure
of a bamboo stalk in order to contain
water entry to the individual affected
compartments.
But Zheng He‘s fame is not just
based on the successful visits of the
fleet commanded by him to India, the
Malay Archipelago, the Persian Gulf
and the Red Sea and the coasts of East
Africa, but even more so on his discovery
voyages that led him to the other
side of the Pacific and beyond, even if
there are no exact historical records to
prove these. However, many indicators
speak in favour of them.
The retired British naval officer Gavin
Menzies who intensively studied this
historical period asserts in his book
entitled “1421 The Year China Discov-
ered the World” that is worth reading
at any rate that America was not discovered
by Columbus but by the Chinese
decades before. He argues that
they were far superior to the Europeans,
both technically and in terms
of navigation, and had therefore also
reached Australia.
According to Menzies theories the
Europeans when starting for the New
World made use of nautical charts that
From one of his journeys Zheng He even
brought along a giraffe – at that time
admired as a fabulous creature in China
already showed America and Australia –
nautical charts from the legacy of Zheng
He and his fleets. If this were true, the
praised European discoverers Columbus,
Magellan, Vasco da Gama and Cook
would fade in the shadow of the great
Chinese. Allegedly, the Venetian merchant
Nicolò de‘ Conti got hold of a nautical
chart he passed on to a Portuguese
prince and which finally came into the
hands of Columbus and others. However,
this nautical chart – if it existed at
all – has disappeared. Anyway.
More important in this chain of evidence
than the nautical chart are archeological
finds at the coasts of America
and Australia that prove the presence
of Chinese discoverers or immigrants.
These are traces of Chinese civilization
Something about History
such as porcelain, tools, and wreckage
derelicts. Also, it is more or less undisputed
that people are living there
whose ancestors came from China. In
this connection Menzies points out that
the manning of Zheng He‘s fleet was
sufficient to allow several ship‘s crews
to be left behind for colonizing without
jeopardizing the fleet‘s journey home.
He even goes as far as to assert that
New England might be renamed into
New China. Scientists or other interested
people will certainly continue to
dispute for a long time how it really
was or could have been. At any rate, it
will remain exciting.
On the other hand, we do have historical
evidence that after the death of
Emperor Zhu Di in 1424 his successor
Zhu Gaozhi lost interest in these expeditions
not least because they were
very expensive. Still on 7 September
1424, the very day he ascended to the
throne, he ordered all voyages of the
treasure fleet and all repair work on
the ships to be stopped immediately.
But Zhu Gaozhi already died after
a few months and as tributes were
strongly declining, his successor Zhu
Zhanji in June 1430 ordered Zheng He,
who had in the meantime been sent off
to Nanjing as military commander, to set
out once more and bring the “remote
countries beyond the sea” back to the
right way. Tradition has it that this mission
was very successful. Some ships got
as far as Jeddah at the Red Sea.
However, this was the very end of it.
In the year of 1500 the construction of
ships with more than two masts was
categorically declared to be a capital
crime and in 1525 the destruction of
all ocean-going vessels and all records
of whatever kind about the great expeditions
of Zheng Hu and other Chinese
seafarers was ordered. The “Middle
Kingdom” which managed to excel with
great scientific and technical accomplishments
retreated into itself and
became ossified in its structures that
were more and more determined by
Confucianism and for which the wide
world was less worth than the observance
of rites and it finally became the
pawn of European powers for centuries.
There are no records about the end of
the great Admiral Zheng He. His tomb
can be found in the Bull‘s Head Hills,
a few kilometres south of Nanjing – a
sarcophagus made from light stone
with a green Arabic inscription. Today,
600 years after his expeditions it has
been restored to become a fine memorial
place.
11

Enhanced performance and shorter delivery times
MaK M 25 with 330 kW cylinder output
assembled in Germany and China
Demand for reliable and costefficient
engines in the output
range from 2000 up to 3000 kW
is on the increase particularly in the
Asian region. The medium-speed MaK
engines of the M 25 series, available
with cylinder output levels of 300 or
330 kW and speeds of 720 or 750 1/
min in 6-, 8- and 9-cylinder versions,
cover exactly this area with an output
from 1,800 to 2970 kW. The MaK M 25
with its cylinder bore of 255 mm and
a piston stroke of 400 mm and thus
bore-stroke ratio of 1.57 is a typical
representative of the highly sophisticated
MaK long-stroke design, achieving
an optimal combustion process
with a combination of moderate speed,
high injection pressure, high compression
and adequate supercharging.
This provides low specific fuel consumption,
heavy oil suitability and low
emissions – characteristics that in the
final analysis assure it a high acceptance
in market.
Caterpillar Marine Power Systems
has sold units of the MaK M 25
engine with a total output of over
1600 MW since its introduction over
ten years ago. The first engine of this
type delivered was a 6 M 25,
which has powered the Irish
fishing vessel “Paraclette”
since summer 1997. Caterpillar
developed a re-design
in 2003 to meet customer
requirements for higher performance.
For this new variant,
the cylinder output was
boosted from 300 kW to
330 kW while retaining the
otherwise same compact
design. The first engines of
this higher-performance version,
two MaK 8 M 25 each
developing 2640 kW, have
been successfully deployed
for over a year as propulsion
plants for the anchorhandling
tugs “Touchet
Tide” and “Yeo Tide” operated
by Tidewater Marine Inc,
USA.
12
The factory of Caterpillar Motoren Guangdong in Shunde City, near the city
of Guangzhou
Caterpillar Motoren
Guangdong Co. Ltd
To meet the increasing demand for
this engine type and reduce delivery
times and costs for regional customers,
the MaK M 25 has been produced
not only at Caterpillar Motoren GmbH
& Co. KG in Kiel, but also for some time
at Caterpillar Motoren Guangdong
Co. Ltd, near Guangzhou. At this Chinese
plant, Caterpillar Motoren has
already built engines of the successful
Engines of series MaK M 25 have been assembled in
Guangdong for quite some time now
MaK M 453 C type since 1996. Its
assembly and test stand capacities
were extensively expanded and
quality assurance improved in 2005
to guarantee the necessary production
increase planned for this year.
This plant naturally meets the high
quality requirements as do all other
Caterpillar engine production plants
around the world. To guarantee identical
engine quality, all components
required for the assembly of the M 25
are delivered from the main plant in Kiel.
The MaK M 25, which has
established itself very successfully
in the market with
increasing sales, requires very
little maintenance thanks to
its effective design and the
much smaller number of components
compared with the
predecessor generation.
The engines of this type are
installed primarily as:
■ Propulsion units for small
cargo ships such as container
feeder vessels and coastal
freighters,
■ Propulsion plants for work
boats such as tugs, fishing vessels
and offshore ships
■ Auxiliary units for generating
electricity on board containerships
and passenger
vessels

Fujian Mawei Shipbuilding Ltd.
The fount of the
national shipbuilding
industry
Fujian Mawei Shipbuilding Ltd,
which emerged in December 2001
from the Mawei shipyard founded
in 1866, is fully identified with the tradition
of the previous organization and
may therefore be considered the oldest
shipbuilding undertaking in the country
and the origin for the national shipbuilding
industry in modern China.
Both the central government and the
regional provincial government supported
the reorganization of the Mawei
shipyard at the end of 2001, which
involved the organization being taken
over by several part owners and the
conversion of the debts into shares.
The Mawei shipyard has been strongly
involved in maritime shipbuilding since
its foundation and, in the early decades,
supplied up to 70% of the ships built
in China. The ships of the first Chinese
fleet and, likewise, those of the contemporary
Fujian Marine, were mainly
built at the Mawei shipyard. In addition,
a whole series of important personalities
in Chinese shipbuilding, and
science and technology, came from the
concern. Examples of this are the highranking
naval officer Deng Shichang in
the later Qing dynasty and the railway
expert Zhan Tianyou.
Marwei starts early
to built ships for export
In the Eighties of the last century,
Mawei shipyard was one of the first
yards in the country to take up export
shipbuilding and, by the end of the
Nineties, built exclusively for export.
The ships were exported to more than
ten countries, mainly in Europe and
South-East Asia.
Fujian Mawei Shipbuilding Ltd. is
based in the city of Fuzhou, which is
on the south-east coast of China and
opposite to the island of Taiwan, and
profits from very favorable traffic connections
by land and sea. The com-
Ready for launching
pany site covers some 300,000 square
meters. One slipway each is available
for new ships of up to 35,000 DWT,
15,000 DWT and 3,000 DWT. There
is also a dry dock for ships of up to
20,000 DWT, 345 meters of fitting-out
quay, 1000 meters of rail track for internal
transport and 15 cranes with lifting
capacities between 15 and 200 tonnes.
The pretreatment line of steelplates is
designed for an annual throughput of
20,000 tonnes of steel. Three NC cutting
plants and two plasma NC cutting
plants complete the essential equip-
Yard profile
ment. The yard employs more than
1600 people, including 306 engineers
and technicians, whose professionalism
ensures the correct execution of
the design, construction and repair of
ships of all types up to 35,000 DWT.
Production and technology
After careful stocktaking at the end of
2001, the concern introduced measures
specifically designed to strengthen the
management structure and make production
more efficient. The new leadership
has, in a very short time, succeeded
in achieving major advances in
13

Main concentration is on feeder ships with a capacity of 700 TEU
the work procedures and has acquired
many new contracts. The order book
now stands, in November 2005, at thirty
ships totaling approximately 260,000
DWT with delivery dates extending
to 2008 and a converted value of half
a billion US dollars. In the current year,
2005, ten ships have been delivered
totaling 65,200 DWT.
Among the new ships, the main concentration
is on feeder ships with a
capacity of 700 TEU, for which twentyseven
orders had been received by the
beginning of November 2005. The yard
places great value on the fact that the
fourth ship in this series could be delivered
at the end of 2004, one hundred
days before the contractual date, an
extremely satisfactory result for the
shipping line and Germanischer Lloyd –
the classification society – and also, of
course, for the yard itself.
700-TEU ships in sixty days
A building time of sixty days, if possible
even less, is the target for these
700-TEU ships. In order to achieve this
objective, appropriate preliminary work
and an increase in the preliminary fitting-out
of the sections is to be further
advanced.
A contract has recently been accepted
for the building of a further series. This
involves ConRo ships of 7300 DWT and
the yard looks forward to this contract
training the personnel to meet higher
technical demands. The first ship of
this more demanding type is already
being built.
The yard‘s technical center is composed
of seventy engineers and technicians,
who are capable of independent
development and research.
In order to support this, cooperation
with internationally famous design
offices has been introduced in past
years. As an example, the most highly
developed 2300 cubic meter dredger
in the country was undertaken jointly
with the Netherlands IHC company in
14
the middle of 1980 and was delivered
at the end of the Eighties.
Finally, various types of ship which
will provide the basis for the future
success of the Fujian yard have been
designed in cooperation with German,
Swedish, Netherlands and Singapore
design offices. This was also reflected
in the award of numerous decorations,
the yard receiving for example
the “Fujian Province Science and Technology
Progress Second Award in the
year 1994” for its 7300 DWT multipurpose
container ship. This was followed
by the “National New Product
Award in the year 1997”, together with
“Fujian Province Science and Technology
Second Award in the year 1997” for
the 660-TEU container ship. The design
for an 820-TEU container ship was decorated
with the “Fujian Province Excellent
New Product Second Award in
the year 2000”, followed by that of the
“Fujian Province Excellent New Product
Third Award in the year 2004”.
The yard points out that it is, of
course, also in a position to build ships
other than container ships and multipurpose
freighters. It can also produce
more difficult ships, such as the two
offshore supply vessels of the Norwe-
gian UT-780 type for Singapore clients.
The yard was certified to ISO 1001:2000
on 31 December 2003.
Well-functioning connections with
international suppliers
Since the beginning of the export shipbuilding
in the mid-Eighties, the yard
has gradually built up extremely wellfunctioning
connections with internationally
recognized material and equipment
suppliers, particularly those from
Europe. In addition to Caterpillar, these
include GEA, Alfa Laval and numerous
others. For fitting out the new 700-TEU
building series, for example, the yard
has ordered some thirty MaK propulsion
installations with a total power of
200,000 kW. A professionally operating
purchase department ensures that the
orders are dealt with smoothly and this
is an important factor in achieving the
production and social targets of the concern.
Hangars with a total area of 12,000
square meters are available for the storage
of material and equipment. Overall,
Fujian Mawei Shipbuilding Ltd. considers
that it is well placed in the international
market – and it is making great
efforts to further improve this position.
More difficult ships as this offshore supply vessel of Norwegian UT-780 type are also
in the portfolio

Wuhan Nanhua High-Speed Ship Engineering
A leader in the design and building of
high-speed ships in aluminum in China
The Wuhan Nanhua High-Speed Ship
Engineering Co. Ltd., with its seat in
Baishazhou in the Wuchang District
of Wuhan Province, concentrates –
as a high technology concern – mainly
on the building of high-speed passenger
ships, patrol vessels and other
special vessels but also builds working
vessels up to 5000 DWT. In addition,
the concern is involved in business
branches other than shipbuilding, such
as harbor installations, highway and
bridge structures, mining and machinery
construction installations, together
with installations for storage and distribution.
The Wuhan Nanhua High-Speed Ship
Engineering Co. Ltd., which is certified
to ISO 9001, operates on an approximately
200,000 square meter site
and has more than 500 well-trained
employees. The concern has its own
research and development center and
this provides the basis necessary for
the design and construction of highspeed
ships in aluminum. The special
experience in this field has made the
concern the market leader in China for
this segment. It has an outstanding
reputation with respect to high quality
and for meeting costs and dates. This is
underlined by the fact that more than
a hundred own-design vessels built by
the concern are now employed in Chinese
waters to the full satisfaction of
the clients.
In association with the successful
development of Wuhan Nanhua, a special
partnership has been formed with
the Lei Shing Hong Machinery (LSHM)
Group, the Caterpillar dealer responsible
for the region. LSHM has now supplied
more than twenty propulsion
installations of the Cat 3408C to 3516B
types for new ships built by Wuhan
Nanhua. They are installed in highspeed
ferries, patrol boats, working vessels
and dredgers.
Wuhan Nanhua has recently delivered
a third generation high-speed vessel,
High-speed ship for coastel waters
designed by the concern itself, for the
Zhoushan islands. The high-speed
ship, with a length of 48.3 meters and
a beam of 7.2 meters, is ideally suited
for use in coastal waters – particularly,
in the present case, for carrying passengers
in the region of the Zhoushan
islands. The hull is a steel construction
and the superstructures are manufactured
from aluminum. This ensures the
correct balance between high speed
and economic use, as demanded by the
market. LSHM has supplied the appropriate
propulsion installation in this
case – two Cat 3516B, each developing
Yard profile
2000 kW. Another fine success was the
delivery, concluded in October 2005,
of several aluminum vessels to Saipan
Island, where they are employed by the
island authorities.
Wuhan Nanhua High-Speed Ship
Engineering Co. Ltd. is endeavoring to
ensure and improve its market position
by the introduction of further new
innovative types of ship. LSHM will support
this development with the supply
of propulsion installations to the latest
state of technology and by appropriate
service arrangements.
Production of small boats in series
15

Sinopacific Heavy Industries Group
Private enterprise shipbuilding group
with focus on international customers
The Sinopacific Heavy Industries
Group is still a relatively young, private
enterprise concern of the Chinese
shipbuilding industry, with its
seat in Shanghai. The Group consists of
three yards and an independently operating
design institute:
■ Zhejiang Shipbuilding Company
Limited in Ningbo,
■ Dayang Shipbuilding Company
Limited in Yang-Zhou,
■ Dadong Shipbuilding Company
Limited in Jiang-Du and
■ Shanghai Design Association (SDA) in
Shanghai
The shipbuilding activities of the
group are substantially concentrated
on the building of double-hulled bulk
carriers up to Panama-Max size, container
ships with a capacity of up to
4250 TEU and offshore vehicles of various
types. The most important product
is indubitably the double-hulled bulk
carriers. At the Zhejiang yard in Ningbo,
a start has just been made on the building
of a series of sixteen ships, each of
51,000 DWT. At the Dayang yard, ships
of this type with a DWT of 53,500 and a
further optimized type of 58,000 DWT
are currently being brought onto the
market for the first time. The main customers
are shipping lines in Greece,
France, Japan and Turkey.
Also important is the building of
container ships of different capacities.
Twenty ships with capacities between
1100 TEU and 1800 TEU are currently
under construction for German
accounts. The basic design of these
new ships originates from Germany
and is completed by SDA engineers. A
large 4250 TEU type, on the other hand,
is a completely new design by the concern.
A first ship of this size is currently
being built at the Zhejiang yard.
A third Sinopacific production line is
the building of offshore vessels of all
types. Ten anchor-pulling and towing
supply vessels (AHTS) are to be found
16
Outfiting of two bulkcarrier at Dayang yard
in the group’s order book. All ten ships
have MaK engines as the propulsion
installation and so have some of the
new bulk carriers and container ships.
The AHTS vessels have a diesel-electric
propulsion installation, which
offers particular advantages with
respect to economic and environmentally
friendly operation. Equipped with
generous crew quarters, they also have
comprehensive capacity for the accept-
Launching of 53.500-dwt-double hulled bulkcarrier “Matumba”
ance of material, which is necessary
in the search for and delivery of crude
oil and natural gas. Their other technical
equipment permits operation down
to the depth of 1500 meters and the
execution of simpler construction and
repair work on location. In addition, a
twin-drum winch is installed on board
and its performance can meet all the
demands with respect to towing and
anchor-pulling operation.

Environmentally friendly
Caterpillar’s new compact
C Design Genset Family
Since spring this year Caterpillar
is offering a complete program
of marine gensets for the lower
output range from 11 kVA to 688 kVA
under the designation of C-design
gensets. The new units are all based on
the latest Caterpillar C engines. Combined
with a corresponding generator
they form a very compact unit. Caterpillar‘s
C-design gensets are designed
with particular focus on long service
intervals, ease of installation and low
space requirement in the engine room.
Over and above that, their high efficiency
ensures very economical operation
of all gensets of this series with
attendant low vibration and extremely
low sound level.
Thanks to the wide range that is now
available Caterpillar is offering its customers
a comprehensive output range
for electric power generation on board
with the particular benefit of allowing
them to purchase all machinery components
for both propulsion and power
supply from a single source from one
dealer. Thus, the operator will now
have only one point of contact for conception,
purchase, and worldwide service
whilst being granted full Caterpillar
warranty for all components.
The individual models of this series
are the marine gensets Cat C1.5, C2.2,
C4.4, C9, and C18. Their performance
data are shown in table 1.
Caterpillar C1.5 Marine Genset
The compact C1.5 marine genset is
the smallest power supply unit and
covers the output band from 11.0 kVA
to 18.1 kVA (table 2). It is especially
tailored to meet the requirements of
small yachts but also of small vessels in
professional shipping.
With a very low fuel consumption
of 3.8 l/h to 4.5 l/h across the entire
speed range and service intervals of
500 operating hours with attendant
high ease of maintenance high economy
for the operator is ensured. Furthermore,
the gensets can be installed
very flexibly according to local conditions
because single-side servicing is
possible.
The naturally aspirated 3-cylinder
C1.5 four-stroke diesel engine with
a swept volume of 1.5 l and indirect
injection is characterized in its standard
version by low noise and vibration
values. With an optional set for further
sound attenuation the sound emission
level can be reduced to values below
65.6 dB(A).
The optional enclosure only slightly
increases the compact unit‘s footprint
and offers easy access to the
genset through doors that unlatch
and lift off without the need for any
tools. Installers have the option to
make connections at the front or
New Design
Figure 1: Cat C1.5 Marine Genset
rear of the genset as needed for the
application.
The electronic control allows isochronous
control of the engine speed
and provides simple switching between
the 50 Hz ratings at 1500 rpm and 60
Hz ratings at 1800 rpm. The engine
meets the EPA Tier 2 emissions requirements.
The genset is available with a threephase
or a single-phase generator to
cover a wide range of applications,
Hertz ekW@.8pf kVA asp. rpm
60 14.5 18.1 NA 1800
50 12.0 15.0 NA 1500
Hertz ekW@.1.0pf kVA asp. rpm
60 13.5 13.5 NA 1800
50 11.0 11.0 NA 1500
Table 2: Cat C1.5 Generator Set Ratings
including heavy load systems on commercial
vessels and large air conditioning
units on yachts. If appropriate for
the application, a single-phase system
is advantageous because less electrical
lines will then have to be laid and
installation time will be shorter.
The C1.5 is equipped with safety
equipment such as an electronic, automatic
shutdown for low oil pressure,
high cooling water or exhaust temperature,
and overspeed.
Type
Output
range
Output
range
Output
range
Frequency
Speed Bore Stroke
Single
Length
Dimensions
Single
Width
Single
Height
Weight
ekW@.8pf ekW@1.0pf kVA Hz rpm mm mm mm mm mm kg
C1.5 12–14.5 11–13.5 11–18.1 50/60 1500/1800 84 90 962–1170 504–608 699–783 319–412
C2.2 17.5–21 18–21.5 18–26 50/60 1500/1800 84 100 1147–1170 521–608 775–825 389–466
C2.2* 25–30 25–30 25–37 50/60 1500/1800 84 100 1147–1170 521–608 775–825 389–466
C4.4 38–99 – 47–123 50/60 1500/1800 105 127 1409–1590 724 1318–1405 805–1015
C9 150–250 – 188–313 50/60 1500/1800 112 149 2106–2216 997 1169 1753–1903
C18 275–550 – 344–688 50/60 1500/1800 145 183 3040 1151 1558 3799–4565
Table 1: Cat C Series Generator Set Ratings * preliminary information
17

Figure 2: Cat C2.2 Marine Genset Figure 3: Cat C4.4 Marine Genset
As an option, Caterpillar is offering
accessories for the most different applications
such as flexible fuel lines, fuel
filter/separator, AC circuit breakers and
a keel cooling kit.
Caterpillar C2.2 Marine Genset
Its low fuel consumption of 5.2 l/h
to 6.2 l/h and long service intervals of
500 operating hours ensure economical
operation also for the C2.2 genset.
This compact genset meets the requirements
of different applications in the
output band from 18 kVA to 37 kVA
(table 3) including heavy load.
When maintenance is required, singleside
servicing allows for flexible installation
in the engine room. The 2.2 litre
four-stroke Caterpillar diesel engine is
available both as naturally aspirated
and turbocharged models.
Hertz ekW@.8pf kVA asp. rpm
60 21.0 26.0 NA 1800
50 17.5 22.0 NA 1500
60* 30.0 37.0 T 1800
50* 25.0 31.0 T 1500
Hertz ekW@.1.0pf kVA asp. rpm
60 21.5 21.5 NA 1800
50 18.0 18.0 NA 1500
60* 30.0 30.0 T 1800
50* 25.0 25.0 T 1500
Table 3: Cat C2.2 Generator Set Ratings
* preliminary information
18
As for the rest, the equipment regarding
electronic control and safety as well
as the basic construction and accessories
correspond to the configuration
described for the C1.5 marine genset.
Caterpillar C4.4 Marine Genset
Core of the C4.4 genset is the new
Caterpillar C4.4 diesel engine which is
the successor to the proven Cat 3054
and 3056 series and combines the benefits
of a proven design with the latest
results of Caterpillar‘s R&D. The 4.4 litre
engine is thus offering low fuel consumption
and stable operating conditions
across the entire speed range due
to a precise timing of the combustion
process. The engine features a standard
electronically governed fuel injection
pump. Load changes are handled
without any problems. For example,
lights do not flicker when genset load
demands suddenly increase.
Within an output range of 47 kVA
to 107 kVA the genset can be used
on yachts and workboats with heavy
load applications. Depending on the
requirements the four-stroke in-line
engine with crossflow cylinder head
(cooling??) will be available in naturally
aspirated, turbocharged and turbocharged
aftercooled options.
Like its predecessors models Cat
3054 and 3065 the C4.4 is characterized
by significantly limited visible
smoke throughout its operating range.
Even starting the engine in cold temperatures
yields virtually no visible
white smoke due to a special cold starting
mechanism. In addition, the C4.4
genset meets the emission requirements
according to EPA Tier 2 in its 60
Hz ratings at 1800 rpm and the CCNR
(Central Commission for Navigation of
the Rhine) standards for 50 Hz operation
at a speed of 1500 rpm.
Hertz ekW@.8pf kVA asp. rpm
60 44 55 NA 1800
60 58 72 T 1800
60 76 95 TA 1800
50 38 47 NA 1500
50 51 64 T 1500
50 69 86 TA 1500
50 86 107 TA 1500
60 99 123 TA 1800
Table 4: Cat C4.4 Generator Set Ratings
preliminary information

Caterpillar C9 Marine Genset
With the C9 marine genset Caterpillar
is offering a compact unit that
combines the modern Cat C9 auxiliary
engine with a Cat generator. The
genset will be delivered as a complete
unit mounted on base rails. It consists
of engine, generator, coupling and
the appropriate mechanical accessories
with integrated vibration isolators.
The gensets use only Caterpillar
parts. Timely provision of wiring diagrams
and factory drawings allow the
shipyard to pre-plan the genset installation.
The rail system ensures even
weight distribution, so that the unit
can be installed regardless of the vessel‘s
structural beams.
The C9 genset is suitable for electric
power supply for a variety of ves-
Hertz ekW@.8pf kVA asp. rpm
60 175 219 TA 1800
60 215 269 TA 1800
60 250 313 TA 1800
50 150 188 TA 1500
50 175 219 TA 1500
50 200 250 TA 1500
Table 5: Cat C9 Generator Set Ratings
sels including yachts, tugboats, ferries,
supply vessels, and crew boats.
The C9 genset is available in six ratings
(three 60 Hz ratings at 1800 rpm
and three 50 Hz ratings at 1500 rpm)
from 188 kVA to 313 kVA. The Cat C9
diesel engine with a swept volume of
8.8 litres is always provided with turbocharger
and aftercooling. Options with
either keel cooling or central cooling
water system with heat exchanger are
offered. The total weight ranges from
1753 kg to 1903 kg.
The C9 diesel engine features elements
of Caterpillar‘s ACERT Technology
which caters for low fuel consumption,
operation without visible smoke
emission, and reduced exhaust emissions
while complying with the IMO
limits and all other current emission
regulations.
Caterpillar C18 Marine Genset
The C18 marine genset based on the
proven Cat C18 genset engine and a
Cat generator is offered as a complete,
ready-to-install package providing all
advantages for simple and quick installation.
The eight ratings covering the
range from 344 to 688 kVA allow its
use in multiple applications.
The electronically controlled 18.1 litre
6-cylinder C18 in-line engine is characterized
by a low weight-to-horse-
New Design
Figure 4: Cat C9 Marine Genset Figure 5: Cat C18 Marine Genset
power ratio and low consumption and
emission values. The C18 genset features
more power and greater displacement
than its predecessor, the
Cat 3406C genset at approximately the
same weight, making it ideal for use on
a variety of vessels such as tugboats,
supply vessels, and passenger vessels.
The genset‘s main components, the
C18 diesel engine and the Caterpillar
generator are both Marine Classification
Society approved. The ACERT Technology
integrated in the C18 engine
with high-pressure fuel injection, electronic
control, aftercooling, and the
resulting efficient combustion ensures
compliance with current IMO and EPA
emission regulations and provides the
potential to achieve a long-term solution
also with regard to emission regulations
to be expected in the future.
Hertz ekW@.8pf kVA asp. rpm
60 340 425 TA 1800
60 425 531 TA 1800
60 500 625 TTA 1800
60 550 688 TTA 1800
50 275 344 TA 1500
50 350 438 TA 1500
50 400 500 TA 1500
50 450 563 TA 1800
Table 6: Cat C18 Generator Set Ratings
19

LSHM: Headquarter and main product support facility in Kunshan
Lei Shing Hong Machinery
Lei Shing Hong Machinery (LSHM)
was founded in 1994 and was established
in April 1995 as the first independent
Caterpillar sales organization
in the People’s Republic of China. LSHM
is a 100% subsidiary of the Lei Shing
Hong Group, which is quoted on in the
Hong Kong stock exchange and whose
activities in various business areas
extend to Asia, America and Europe.
LSHM has its seat and its main service
facilities in Kunshan, in the Jiangsu
province and from there, together
with a further nineteen local organizations
in eastern China, in the provinces
20
Effective network all over in the country
The Caterpillar Dealer
of Jiangsu, Shandong, Henan, Hubei,
Anhui and Zhejiang, as well as Shanghai,
covers all the requirements arising
from the sale and subsequent servicing
of Caterpillar products.
As already mentioned several times
and as is generally known in the
industry, China has now advanced
to Number 3 among the shipbuilding
nations and has officially acknowledged
its objective of becoming the
leader in worldwide shipbuilding by
2015. All the corresponding decisions
and activities in the country indicate
that this objective is quite realistic. The
region covered by LSHM represents a
major part of the area where the rapid
development has taken place. The
market to be serviced, however, is differentially
structured. It comprises all
branches of the industry, including
Lei Shing Hong
Machinery
ocean-going ships, fisheries and offshore
vessels, dredgers, tugs and even
leisure boats – a comprehensive field of
activity.
Although LSHM is one of the youngest
members of the Caterpillar Marketing
and Service Organization, it is also
the one with the most rapid growth.
Number 9 in the ranking of the worldwide
organization had already been
achieved in 2004. In order to react even
more rapidly to the requirements of

Organization in China
the customers, LSHM has restructured
its Power System Division in such a
way that it can act fully independently
within the group and, by this means,
service the Chinese market even more
efficiently.
LSHM emphasizes that what has
been achieved up to this point is essentially
due to the professional enthusiasm
of its staff. This applies to all areas –
sales, technology, project management
and service. Considering the continually
booming markets, further growth
of the LSHM Power System Division is
practically predetermined.
Capital Machinery headquarter
Capital Machinery Limited
The Lei Shing Group has also taken
over the Caterpillar business in
Taiwan in 2004 and, for this purpose,
has founded Capital Machinery Limited
(CML) there. CML is the single representative
for Caterpillar products in
Taiwan and is supported by seven local
organizations so that a comprehensive
service can also be offered there.
As part of the CML Power Systems
Division (PSD), two sales groups are
operating in the maritime field – one
for the commercial area and the other
for leisure shipping. At this point, it
should be noted that although Capital
Machinery Limited is one of the
youngest Caterpillar sales organizations
in the world, Caterpillar has been
present in Taiwan as a supplier of a
large spectrum of propulsion installations
for more than thirty years. This is,
Sales & Service
Capital Machinery
in particular, illustrated by the fact that
more than a quarter of the present
employees have already been active on
behalf of Caterpillar for twenty years
and more.
21

ECI-Metro facilities in Kunming
ECI-Metro
ECI-Metro Investment Co., Ltd.
(ECI-Metro) is a joint venture of ECI,
the industrial branch of the Thailand
CP Group (Zhang Da Group) and Metro
Machinery Co. Ltd., the Caterpillar
dealer for Thailand, Laos and Cambodia.
ECI-Metro was founded in 1995 as
the Caterpillar sales organization covering
the market in south-western and
north-western China. The headquarters
are located in Kunming and provide
leadership for a network of subsidiaries
in Dali, Guiyang, Chengdu, Chongquing,
Lhasa, Xi’an, Lanzhou, Yinchuan
and Xining. ECI-Metro, with its continually
optimized organization, is the Caterpillar
dealer which covers the larg-
22
ECI-Metro
est area in China. In addition to selling
Caterpillar products, ECI-Metro, supported
by the two mother companies,
offers a comprehensive supply of spare
parts and services. Carefully trained
local specialists are employed for this
purpose. In addition, great attention is
paid to the training of the customers’
personnel and this makes a substantial
contribution to avoiding unnecessary
costs for the customer.
CEL headquarter in Hong Kong
China Engineers, Limited (CEL)
China Engineers was founded in
Shanghai in 1928 as a concern
involved in electrical technology and
China Engineers
electrical business. The move to Hong
Kong took place in 1948, where the Caterpillar
representation was taken over
in 1962, this including the adjacent
Macao. China Engineers (Holdings) was
taken over in 1972 by Sime Darby Holdings,
which however only had a small
influence on the operational business
and has only recently commenced to
make its own resources available to
China Engineers.
CEL became the Caterpillar dealer
for the Chinese provinces of Guangdong,
Guangxi and Hainan in 1982. CEL
was later given the right to sell Caterpillar
generators to the building industry
throughout China. With the establishment
of further dealers in China,
however, the activities in this segment

The CEL’s first class service center in
Shunde was put into operation in 1997
have been reduced greatly. As compensation,
however, the CEL activity in
China was substantially strengthened
in 1995 when the number of employees
was greatly increased and, for the
first time, the concern could occupy its
own premises in China, so that the Chinese
market could be more effectively
serviced than previously. A first-class
service center was put into operation
in 1997 in Shunde, in the Guangdong
province.
In January 1999, the area to be
covered in China was substantially
increased by the inclusion of the provinces
of Fujian, Jiangxi and Hunan. The
province of Xinjiang, which is located in
the remote northwest, was also added
in 2002. Not least due to this increase
in area, CEL was able to create new possibilities
for the sale of Caterpillar products
for different applications. In addition
to machines for the mining, oil
and gas industries, together with infrastructure
and industrial developments,
the marketing and service of engines
for marine applications became of
great importance due to the rapid
development of the Chinese shipbuilding
industry. CEL exploits this development
single-mindedly.
Sales & Service
WesTrac service center in Beijing
WesTrac China
WesTrac China Limited is a subsidiary
of WesTrac Equipment Company
that is owned by the Australian
WesTrac
Capital Equity (ACE) group. Continuing
the business of a predecessor company
WesTrac has been operating as dealer
for Caterpillar products for decades
now and always been ranking among
the most successful distributors in the
worldwide sales organization. The subsidiary
WesTrac China, founded on 1st
January 2001, is the youngest Caterpillar
dealer in China and covers the Heilongjiang,
Jilin, Liaoning, Hebei, and
Shanxi provinces, the Inner Mongolia
Autonomous Region as well as the
cities of Beijing and Tianjin. WesTrac
China is serving all industries and
proud to be able to assist in the development
of the country. WesTrac China
is committed to becoming one of the
best dealers in the Caterpillar world.
23

Seen en Route
Shanghai –
a fascinating centre with a rich history
There are many suggestions on
how to experience, explore
or assimilate Shanghai, China‘s
breathtaking economic hub
– as many as the city‘s facets. As
Shanghai has in the meantime
become the biggest port of the
world, one of them seems particularly
attractive because it takes
the close vicinity of the water as
a starting point and allows to
encompass much of its tradition
and modern spirit. They say you
should be at the water front, the
Bund, at sunrise and listen to the
sounds coming from the languidly
flowing Huangpu river, the ship‘s
horns ringing out and the powerful
chugging of the tugboats pulling
heavily loaded barges. When
the day begins you will find yourself
among many people meditatively
practicing Tai Chi, the
ancient slow motion routine.
When the mist clears, you will see
on one side of the river, lining the
Bund, magnificent colonial buildings
of an era that has past long
ago, whilst on the other side there
appears the new China, and, more
particularly so, the new Shanghai
with an impressive skyline that is
in no way inferior to the skyline of Manhattan,
but even surpasses it depending
on your vantage point.
Shanghai was first mentioned in 960
as a village and has a long history with
many ups and downs because it has
always been special among the big Chinese
cities and, therefore, depending
on the general political situation, often
contested but still more often coveted.
While the capital Beijing has always
been the huge empire‘s political and
cultural centre, Shanghai has always
remained the economic hub with a
large share of population often living in
great poverty and a small, immensely
rich upper class. This created greediness
and so it is not amazing that in
the twenties and thirties the city practically
became a synonym for sin, adventurousness,
and wealth, being called
24
“The Oriental Pearl Tower” in Pudong
“Paris of the East” and easily eclipsing
European models in terms of glamour,
decadence, and eccentricity.
But also communism has its roots in
Shanghai. Already in 1915 Chen Duxiu
started publishing his newspaper
“Youth” which later on, under the name
of “New Youth”, had a big influence
on the population. Not least thanks
to this newspaper the Chinese gradually
regained their national consciousness
that had suffered in the past
century under the pressure of international
powers and particularly under
the brutal war of conquest of the Japanese.
Especially in Shanghai thousands
of people perished during this period.
Today, Shanghai, which is also called
“China‘s Gateway to the World” or the
“Dragon Head City”, is a gigantic city
still rapidly growing, both in terms
of surface area and height, and
in which 9.3 million people (suburbs
not counting) have their
main place of residence. The entire
administrative area of the city has
18.3 million inhabitants including
4.7 million inhabitants with a temporary
residence permit. Shanghai
is administered as a separate governmental
unit directly by the central
government and has provincial-level
status.
When in the mid eighties, after
a gloomy period, the decision
was taken to give Shanghai once
more a leadership role in modernizing
China, this led to an enormous
rise in industrial production
and foreign investment, and the
foundation of the Pudong economic
zone in 1990 added further
momentum. The foundation
was laid for a “New Bund”, huge
shipyards were built and soon the
world‘s highest building will rise
up there. The new airport and the
Transrapid are further outstanding
features. Allegedly, nowhere
in the country better skilled workers
can be found and the Shanghaians
are famous for their ability to
combine style and demanding quality
with a pronounced business sense and
international thinking.
But naturally there are also still
huge drawbacks in this booming community.
Particularly noteworthy are
the city‘s hopeless overpopulation
and severe environmental problems
such as smog, noise, and pollution of
the rivers. And yet, Shanghai is everything:
A paradise for shopping freaks
with everything your heart desires
and your wallet can afford. The same
holds true for those who like to go out
at night. Whether garish or dimly lit,
modern or traditional, loud or quiet –
Shanghai‘s night life is as diverse as
the city in the daytime. A blessing for
many, a Moloch for others, but always
fascinating.