China Association of the National Shipbuilding Industry (Cansi) has urged Chinese shipyards to stay on the path of moving up the value chain and streamlining operations, if the country is to become the world’s leading shipbuilding nation.

Zhang Guangqin, president of Cansi, believed that while Chinese yards have the potential to raise their competitiveness globally, they would have to upgrade and develop appropriately.

“During the last 10 years of rather rapid growth, our shipbuilders have achieved a significant milestone. Chinese yards are now able to build 8,000 teu and above containerships, and yards are equipped with berths of 10,000 dwt and above as well as close to 800 shipping docks,” Zhang was quoted saying.

However Zhang pointed out that there is no need for Chinese yards to continue expanding their capacity for growth.

“Capacity infrastructure has reached its peak. Chinese yards should no longer rely on past business strategy of investing to expand capacity and assets,” Zhang believed.

He added that crucial developments now should be improving value-added services and products, including the capability to construct offshore vessels, specialised vessels and deepwater equipment.

China’s shipbuilding industry is undergoing a consolidation phase to remove the severe overcapacity amid the sluggish shipping market.

Zhang said the consolidation period has removed a consideration portion of excess capacity from the market and the consolidation will continue for the next few years.