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Special Report on China

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T&T SHIPBUILDER & REPAIR NEWS www.tts-r.com ISSUE #044 – SPECIAL REPORT 2011. +1 (868) 384 - SHIP

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Following our successful participation at the Trade and Investment Convention (TIC) held at the Hyatt Trinidad, Port of Spain from June 15-18, 2011. I was invited to visit the People’s Republic of China. Although the flight was some twenty-one (21) hours long, on my arrival my host, the China-Changchun Municipal People's Government took great care of me during this wonderful trip. I believe that Trinidad and Tobago has a lot to gain by developing closer ties with the People’s Republic of China. At the recently concluded 3rd China-Caribbean Economic and Trade Cooperation Forum also held in Port of Spain from September 12-13, 2011 our Minister of Trade and Industry, Honourable Stephen Cadiz, MP has urged the local business community to openly embrace trade opportunities with the second largest economy in the World, which is also the second largest Shipbuilder in terms of tonnage. Kindly refer to Page 28.

T&T SHIPBUILDING & REPAIR (S&R) CLUSTER

Diversifying our Economy, one Ship at a time©...

Hello S&R Stakeholders,

SPECIAL REPORT ON THE PEOPLE’S REPUBLIC OF CHINA

VISIT TO LEADING S&R COMPANY IN DALIAN, PEOPLE’S REPUBLIC OF CHINA

Sincerely, T&T Shipbuilding and Repair Cluster.

Wilfred de Gannes. Deputy Leader.

Since 1997, Dalian Jointtop Company Limited was founded in Dalian, North East People’s Republic of China which is one of the world’s leading shipbuilding industry bases and is well known as the cradle of China’s shipbuilding industry. Jointtop's core business areas are ship broker service, ship repair & reconstruction, marine equipment & material supply. The Company has accumulated experience with foreign shipping companies, shipyards and equipment manufacturers, as well as with internationally renowned Classification Societies, including the Russian Maritime Register of Shipping, the China Classification Society, Lloyd's Register of Shipping, Det Norske Veri tas, Bureau Veritas and others. To v is i t thei r websi te, p lease cl i ck: www.jointtop.com

L-R: Wilfred de Gannes is congratulated by Mr. Wang Chun Yu Jointtop Manager, Newbuilding Department at their Dalian Head Office.

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First Groot-Cross Bow Vessel Launched in China September 26, 2011 saw the launch of the first of a Super Green 8000 class of four 8000 dwt multipurpose dry cargo vessels with the innovative Groot Cross-Bow® developed by the Dutch design and engineering company Groot Ship Design.

Drawing of the Super Green 8000 Class 8000 dwt multipurpose dry cargo vessel with the innovative Groot Cross-Bow®

All four vessels are being built by Jiangsu Yangzijiang Shipbuilding Ltd, China for Caribrooke Shipping, UK, which currently own or operate approximately 60 modern dry cargo vessels, ranging from 3,000 dwt up to 20,000 dwt.

The 6,143 GT vessel has a LOA of 360 ft (110 m) beam 57 ft (17.4 m) and draft of 26 ft (8 m). Propulsion is by a single engine with an output of 3,200 hp (2,400 kW) powering a controllable pitch propeller of 14 ft (4,29 m) diameter in a nozzle. Service speed is 12.3 kt. Auxiliary electrical power is provided by two diesel gensets each of 420 kW, and emergency 264 kW genset and there is a single-shaft generator of 525 kW. Tests in the ship model ice testing tank of Hamburgische Schiffbau Versuchanstalt (HSVA) in Hamburg proved the Groot Cross-Bow® as being suitable for sailing in ice under Swedish Ice classification. Together with an optimized hull shape, the bow shape claims to offer energy savings resulting in benefits by reducing installed propulsion power. Tank testing indicates possible fuel reduction of between 25 and 37 per cent may be achievable; and improved seakeeping performance, in particular reduced pitching and less slamming, will permit higher speeds in heavy weather.

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Jiangsu Yangzijiang Shipyard Launch Sequence

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To view video ‘Launching the Groot Cross-Bow® Design’ please click: http://www.youtube.com/watch?v=vTlaERobEuE&feature=youtube_gdata_player

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China's Hospital Ship Sets Sail for the Caribbean China's first self-designed 10,000-ton-class hospital ship "The Peace Ark" has left China on a 100-day voyage to the Caribbean, where it will visit Cuba, Jamaica, Trinidad and Tobago and Costa Rica as part of a mission dubbed "Harmonious Mission 2011" to provide medical services to local residents.

The hospital ship "Peace Ark" sets sail on September 16, 2011 on a 100-day voyage for the Caribbean countries of Cuba, Jamaica, Trinidad and Tobago, and Costa Rica.

With a crew complement of 416, and 107 of them being medical staff such as doctors and nurses; the "Peace Ark" is also the very first 10,000-ton-class hospital ship in the world. It carries the latest medical equipment and hardware systems, advanced navigational and operational systems, 1,512 types of medicines, accommodation for 300 beds, and a rescue helicopter. CRI reporters interviewed some of the crew members to get an overall understanding of the mission as well as hear some moving stories. As the sun rose over the horizon, the "Peace Ark" embarked upon her long journey and the crew waved their hands towards their motherland. However, some of the crew members had to stay below decks and bid farewell to their home from the bottom of their hearts. Colonel Cheng Jianrong, the chief electrician of the hospital ship, can only see the outside world when the ship comes in to shore. As a veteran crew member, Cheng has spent 28 years on board and views the facilities in the hull as his family members.

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R - L: CRI Director-General Wang Gengnian interviews Vice-Captain Xie Xiaojun.

"When my fellow colleagues are waving to our homeland and we are being seen off, I must prepare to set sail below the decks and ensure all the equipment is working well," Cheng said to CRI reporters. "Here it is noisy and damp and it is really hard work, but that is my duty. I feel responsible and honored for my work," he added. Speaking of the new challenges facing the mission, Rear Admiral Qiu Yanpeng, the mission commander, explained that crew members are not familiar with the Caribbean Sea as this is the first time a Chinese naval vessel will visit the area. "Besides, the relatively advanced medical services of the four countries we are going to visit also place higher demands on the content and quality of our services," Qiu added." In order to better understand their patients, the doctors on the "Peace Ark" have spent a lot of time improving their English and studying Spanish, said Jiang Futing, the director of the ship hospital's outpatient department. "Though the doctors and nurses can speak good English, we have still prepared some audio and video materials on how to communicate with patients when asking them questions, diagnosing them and preparing them for operation," Jiang stated, "an interpreter from the CRI Spanish Service will also accompany us during the whole journey to help us communicate."

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L - R: CRI Director-General Wang Gengnian interviews a crew member of the "Peace Ark".

Academic exchanges are another task of the mission. Jiang said that he will introduce traditional Chinese treatments which are mysterious to many foreigners. "Acupuncture, physiotherapy and acupotomy which integrates both traditional Chinese and western treatment are included in the academic exchanges. I myself have collected pictures and video clips of Tai Chi Shadow Boxing and Tai Chi culture for our Latin counterparts." The "Peace Ark" launched her first medical service voyage last year to provide services to the Chinese crew of a convoy fleet in the Gulf of Aden and waters off the Somali coast, and residents in Bangladesh, Kenya, Tanzania, Seychelles and Djibouti.

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INTERNATIONAL NEWS

China's Sea Claims to top Japan-Philippines Summit - Sept 27, 2011

China's increasingly assertive territorial claims in the South China Sea were set to top the bill as Japanese Prime Minister Yoshihiko Noda met Philippine President Benigno Aquino.

Tokyo and Manila were expected to sign an agreement boosting military cooperation and stepping up their maritime security ties, the latest move by countries in the region becoming ever more wary of China's reach.

As the two leaders sat down, Noda said Japan "considers the bilateral relationship as a strategic partnership" with the two countries "sharing a strategic interest".

Ahead of his visit, Aquino's spokesman quoted him as saying the territorial conflict and heightened tensions between China and the Philippines over the South China Sea should also concern Japan. The Philippines and China, along with Brunei, Malaysia, Taiwan and Vietnam, have conflicting claims to all or part of the South China Sea.

China Puts Stop to Conoco Offshore Production - Sept 4, 2011

China’s coastal waters regulator on Friday ordered ConocoPhillips to suspend production in the country’s largest off-shore oil field, citing “negligence” by the U.S. energy company in handling underwater leaks.

The move by the State Oceanic Administration, which manages Chinese waters, rejects the Houston Company’s claims this week that it stopped oil leaks associated with spills reported in June. Conoco, the agency said, “has not fulfilled its responsibility as a reasonable and prudent operator.”

A Conoco spokesman on Friday expressed surprise at the order and said it is working with the regulator to better understand its rationale. He added, “we have acted swiftly and have contained any release to the ocean.”

The requirement to suspend activity across the offshore oil field, called Peng Lai 19-3, is a blow for Conoco and its joint venture partner, state-owned China National Offshore Oil Corp., or CNOOC. It is expected to have less influence on China’s overall supply situation.

Suspension is a sharp rebuke of Conoco. Spills were associated with only two of at least eight platforms and facilities it has in the Bohai Sea to service the field equipment that is separated by miles of water. The closure comes after Conoco this week said it had met China’s August 31 deadline to soak up and otherwise address problems associated with the spills that involved 3,223 barrels of crude oil and drilling fluids.

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China Moves In On Atlantic LNG - August 23, 2011 Economic powerhouse China is about to acquire a stake in Trinidad and Tobago's Atlantic liquefied natural gas facility at Point Fortin. The French utility and China's sovereign wealth fund confirmed recently in a Reuters report out of Paris that they were in exclusive talks to seal a US$4 billion alliance that would help GDF finance its expansion in Asia and offer Beijing access to new energy resources. GDF outlined the details of the partnership, its second large deal in a year, after the purchase of 70 per cent of International Power, as it reported earnings for the first half of 2011 that beat forecasts. Under the partnership, the wealth fund China Investment Corporation will pay €2.3 billion, or $3.3 billion, for a 30 per cent stake in GDF's exploration and production unit. The Chinese fund will also purchase the French group's ten per cent stake in Atlantic for €600 million, a joint statement said.

China Launches Maritime Satellite - August 17, 2011

China has launched a satellite that will survey the maritime environment to help prevent and reduce maritime disasters, according to a report from Voice of America. The Haiyang-2 satellite was launched by a Long March-4B rocket from the Taiyuan Satellite Launch Centre in North China.

The Haiyang-2 is designed to monitor ocean wind fields, sea levels and temperatures, waves, currents, tides and storms in order to provide disaster and weather forecasting information, according to the report. The satellite is equipped with a microwave radar altimeter to measure sea levels and wind speeds.

Dalian Shipbuilding Builds Mega ‘Green’ Recycling Yard - June 25, 2011.

China's largest state-owned shipbuilder, Dalian Shipbuilding Industry, is building possibly the world's biggest 'green' recycling yard facility. The state-of-the-art recycling yard will occupy an area of 460,000 square metres and will commence operations around June 2012 on Changxing Island in northern Liaoning province.

The yard will be capable of breaking down around 75 ships per year, ranging from 50,000 dwt to 300,000 dwt, and shall be able to recycle up to 1m ldt per annum. Scrap steel cut from dismantled ships will be melted to create new steel which will then be used by Dalian Shipbuilding for its newbuildings.

Dalian Shipbuilding is owned by Shanghai-listed China Shipbuilding Industry Corp and has invested US$140 million into the project. The new yard will be named Dalian Shipbuilding Industry Ship Recycling and is 67% owned by Dalian Shipbuilding, 18% owned by Singapore's Pacific International Lines (PIL) and 15% by Angang Steel.

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Great Lakes Shipyard Awarded $23 million Tug Contract Cleveland Shipyard will build two 4,640-hp Tugs Caribbean Tugz LLC, an affiliate of SEACOR Holdings Inc., Fort Lauderdale, Fla., has awarded a $23 million contract to Great Lakes Shipyard, Cleveland, to build two state-of-the-art 50-ton-bollard-pull ASD tugs.

Designed by Jensen Maritime Consultants Inc., the tugs will be built to ABS standards

The 92’x38’16’-9”, 4,640-hp tugs will be used for shipdocking and escort at the Hovensa Oil Refinery in St. Croix, U.S. Virgin Islands. The tugs are scheduled for completion in early 2013.

Designed by Jensen Maritime Consultants Inc., Seattle, the tugs will be built to American Bureau of Shipping standards, and are purpose-built for ship assist, escort, and firefighting duties. The tugs will be uniquely constructed to meet the wide range of operational parameters typical in the Caribbean and the Gulf of Mexico. The tug is outfitted with a pair of Caterpillar C280-6 Tier 2 diesel engines, rated at 2,320 hp at 900 rpm each, and two Rolls-Royce US 205FP Z-drives with 90”-dia. wheels. The package will give each tug an estimated running speed of 12 knots.

For firefighting, there’s a pair of 5,200-gpm monitors with foam storage.

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Caribbean Tugz will charter the new tugs to Hovensa under a long-term bareboat charter contract. Hovensa, the eighth largest oil refinery in the world with a capacity of over 500,000 bpd, is a joint venture between Hess Oil Corp. and Petroleos de Venezuela S.A.

Great Lakes Shipyard, a division of The Great Lakes Towing Company, is a full-service shipyard specializing in new construction, repairs, and modifications of all types of workboats and barges. A $24.5 million expansion project is currently underway at the shipyard, which includes a new 770-ton Marine Travelift, the largest on the Great Lakes.

Recent deliveries include two 70-foot aluminum research vessels for the U.S. Geological Survey’s Great Lakes Science Center.

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WELCOME ABOARD! Qualitech Machining Services Limited

Qualitech Machining Services Limited (QMS Ltd.) is proud to be a part of Shipbuilding and Repair. QMS Ltd. has serviced the Marine industry for the past 16 years, manufacturing propeller shafts up to 28 feet long, wear sleeves, tapers, keyways and propeller nuts, including 'pegging' the propeller to ensure 100% contact fit onto the taper. Overhauls are also carried out to gear boxes, pumps and almost anything found onboard a vessel. Visit their website at: www.qmstt.com

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AUSTAL SET FOR GROWTH IN THE CARIBBEAN Austal Chief Executive Officer, Andrew Bellamy, recently met with and addressed influential political and business leaders in the Republic of Trinidad and Tobago, discussing Austal’s plans for growth in the Caribbean region.

(From left): Andrew Bellamy, Austal Chief Executive Officer; the Hon. Philip Kentwell, High Commissioner to Trinidad and Tobago; the Hon. Stephen Cadiz, Minister of Trade and Industry, Trinidad and Tobago;

and Carl Francis, Permanent Secretary, Minister of Trade and Industry, Trinidad and Tobago.

During his visit, Mr Bellamy met with the Trinidad and Tobago Minister for Trade, the Honourable Stephen Cadiz, along with the Australian High Commissioner to Trinidad and Tobago, Philip Kentwell. Austal established a regional Service Centre in Chaguaramas, Trinidad, in December 2009, following the successful contract award for the supply of six 30m fast patrol boats for the Trinidad and Tobago Coast Guard. The contract included a five-year comprehensive maintenance and support services program which included maintenance, management and performance of annual surveys, as well as shore based engineering support. The Western Australian shipbuilder has also delivered four 41m high speed catamarans to the Trinidad and Tobago National Infrastructure Development Company Limited (NIDCO) which are currently operating as a water taxi service between San Fernando and Port of Spain in southwest Trinidad.

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Mr Bellamy commented that the visit to the Caribbean nation was a success, providing an excellent opportunity to further develop strong relationships with key personnel, as well as to provide a forum by which to share Austal’s vision for growth within the region. “The continued development of the skills and qualifications of Austal staff within Trinidad is a core priority for the Company as we look to expanding Austal’s presence in the region, as well as positioning the Trinidad Service Centre to be able to take on commercial service and maintenance work.” “The Trinidad Service Centre is currently operating at a period of peak work load on the maintenance contract for the Trinidad and Tobago Coast Guard vessels. These vessels have performed well since their delivery in 2009, with the TTS Scarlet Ibis operating at 100% availability all year, with other Coast Guard vessels also operating at high availability. “The staff at Austal’s Trinidad Service Centre have developed excellent working relationships with operators within the region, and have become known for their reliability, hard work and technical knowledge. “We look forward to continuing to develop our relationship with vessel operators in Trinidad and Tobago, and will work to pursue further opportunities to deliver more vessels to the Caribbean region,” said Mr Bellamy. Austal’s growth in the Caribbean complements the Australian company’s increasing international presence as an emerging defence prime contractor. Along with shipyards in Western Australia and Alabama, USA, Austal has established regional service centres in Spain, Oman and Darwin, Australia, as well as sales offices in the United Arab Emirates, the United Kingdom, and Japan.

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"Is it not a pleasure when friends visit from afar!”

- Confucius, born in 551 BC

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AUSTAL LATEST DELIVERIES ON ROUTE TO GUADELOUPE Two 47 metre high speed catamaran ferries departed Austal’s Henderson shipyard this week bound for Guadeloupe, where they will shortly commence operations for long-standing Austal customer L’Express des Iles.

“Liberty” and “Perle Express” are powered by two MTU 16V4000 M71 diesel engines.

Austal was selected by L’Express des Iles in June 2010 for the design and construction of the two vessels – one vehicle-passenger ferry and one passenger ferry, marking the company’s third contract with Austal since 1997. L’Express des Iles previously operated the Austal-built fast ferries “Opale Express” and “Jade Express”, delivered in 1998, which in 2005 were replaced by the vessels currently in operation “Gold Express” and “Silver Express”. The two new vessels will commence operations in October 2011 from Guadeloupe to the Caribbean islands of Marie-Galante, Les Saintes, Dominica and Martinique, where they will provide an important inter-island link for tourism and trade.

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Cockpit of “Perle Express”

Austal Chief Executive Officer, Andrew Bellamy, commented that Austal was pleased to once again deliver a high quality, innovative product to a repeat customer. “Maintaining and supporting existing customer relationships is a core focus of Austal. We are very pleased that a leading commercial operator such as L’Express des Iles has again returned to Austal for new-build ferries, and we hope to continue this relationship well into the future.” The vehicle-passenger ferry, “Perle Express”, has the capacity for 364 passengers spread over two decks, as well as room for 10 vehicles and extra cargo. Continuing the design theme of the earlier L’Express des Iles vessels, the bright and spacious interiors include comfortable reclining chairs, a children’s area, and flat screen TV’s throughout, as well as considerable space for luggage storage. The passenger ferry, “Liberty”, will be operated by SAS Jeans, a subsidiary of L’Express des Iles, and will operate regular services between Guadeloupe, Marie-Galante, Les Saintes, Dominica and Martinique, as well as providing day or weekend excursions to other nearby Caribbean islands including Montserrat, Antigua, Saint Kitts-Nevis and Saint Vincent. With seating for the vessel’s 437 passengers spread over two decks, “Liberty” will serve as a functional yet comfortable low cost alternative for holiday-makers in the Caribbean.

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Each vessel was customised to cater for the operator’s route requirements, with both “Perle Express” and “Liberty” able to operate at speeds of up to 34 knots, each powered by two MTU 16V4000 M71 diesel engines driving Kamewa 71 SIII waterjets. This combines with Austal’s expertise in producing durable, lightweight and efficient structures to deliver economical operation with reduced environmental impact, while still providing commuters with short transit times, comfort and service reliability. “Liberty” is also the first passenger vessel to ever be registered under the new French Registry - Registre International Français. PRINCIPAL PARTICULARS “Perle Express” and “Liberty” Length overall 47.0 metres Length (waterline) 41.2 metres Beam (moulded) 11.1 metres Hull depth (moulded) 4.0 metres Hull draft (maximum) 1.4 metres PAYLOAD AND CAPACITIES Passengers 364 Crew 7 Vehicles 10 Main vehicle deck maximum 1.5 tonnes per axle Maximum deadweight 79.9 tonnes Fuel (approx.) 15,500 litres PROPULSION Main engines 2 x MTU 16V 4000 M71, 2,465 kW @ 1,970 rpm Gearbox 2 x ZF 7650 NR2H Waterjets 2 x Kamewa 71 SIII PERFORMANCE Speed 33.4 knots CLASSIFICATION Bureau Veritas 1 HULL MACH AUT-CCS, HSC-Cat A French Flag ************************

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MARITIME INDUSTRY WEB LINKS

ATLANTIC LNG - www.atlanticlng.com/ AUSTAL - www.austal.com/ CARIBBEAN ANALYTICAL SERVICES LIMITED - www.casl-group.com/ 3RD CHINA-CARIBBEAN FORUM - http://cncforumenglish.mofcom.gov.cn/ CHINA NATIONAL OFFSHORE OIL CORPORATION - www.cnoocltd.com/ COMPREHENSIVE INSURANCE BROKERS - www.insurance.co.tt/ CONRADO BEACH RESORT LIMITED - www.conradotobago.com/ DALIAN SHIPBUILDING INDUSTRY CORPORATION - www.dsic.com.cn/ GDF SUEZ - www.gdfsuez.com/ GROOT SHIP DESIGN B.V. - www.grootshipdesign.nl/ HORNBECK OFFSHORE SERVICES - www.hornbeckoffshore.com/ MINISTRY OF TRADE & INDUSTRY - www.tradeind.gov.tt/ NEW LA BREA VISION - www.facebook.com/New-La-Brea-Vision/ NEW LA BREA VISION - www.issuu.com/newlabreavision/ PORT AUTHORITY OF TRINIDAD & TOBAGO - www.patnt.com/ QUALITECH – www.qmstt.com TIC 2011 / CARIBBEAN INVESTMENT FORUM - http://tic-tt.com/ TRINTRAC LIMITED - www.trintrac.com/ T&T SHIPBUILDING & REPAIR - www.tts-r.com/ T&T SHIPBUILDING & REPAIR - www.flickr.com/photos/ttshipbuildingandrepair/sets/

T&T SHIPBUILDING & REPAIR - http://tt.linkedin.com/in/shipbuildingandrepair T&T SHIPBUILDING & REPAIR - www.youtube.com/user/degstt T&T SHIPBUILDING & REPAIR - www.issuu.com/shipbuildingandrepair ZF MARINE - www.zf-marine.com/

************************ Blue highlighted links indicate additional websites added in this month’s newsletter. Red highlighted links indicate Advertisers for the current issue.

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TRINIDAD AND TOBAGO SHIPBUILDER AND REPAIR NEWS PAST ISSUES

April / May 2011 March 2011 Feb 2011 Jan 2011 Dec 2010 Nov 2010

Oct 2010 Sept 2010 Aug 2010 July 2010 June 2010 May 2010

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FOR YOUR INFORMATION

To read article ‘Cadiz to businessmen: Explore opportunities in China’ please click:

http://www.guardian.co.tt/business/2011/09/25/cadiz-businessmen-explore-opportunities-china

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CONTACT INFORMATION

Mr. Wilfred de Gannes, Deputy Leader, T&T Shipbuilding and Repair Cluster, Post Office Box 2853, Chaguaramas, Trinidad and Tobago. Tel: +1(868) 753-6057 Tel: +1(868) 384-SHIP(7447) Fax:+1(868) 662-6326 E-mail: [email protected] Website: http://www.tts-r.com

Trinidad and Tobago Shipbuilder & Repair News is edited by T&T Shipbuilding and Repair Deputy

Leader Wilfred de Gannes, and published monthly by the Shipbuilding and Repair Development

Company of Trinidad and Tobago Limited. This newsletter is available complimentary via email.

© All rights reserved. No part of this publication may be reproduced, stored in a retrieval system,

or transmitted in any form or by any means electronic, mechanical, photocopying, recording or

otherwise without the prior permission of the publisher. Quotation(s) from the publication is

allowable with appropriate credit.

Cadiz to Businessmen: Explore Opportunities in China

T&T Trade and Industry Minister Stephen Cadiz is calling on local businessmen to explore the new opportunities that await in China’s fast growing market following the success of the China-Caribbean Economic Forum held at the Hyatt Regency Trinidad

While the energy sector contributes significantly to the national economy, Cadiz said, the Ministry of Trade and Industry is mandated to diversify the economy in terms of the non-energy, manufacturing and service sectors, as well as, downstream industries from the energy sector.

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