Friday, July 31, 2009

[NEWS] COSCO, Shipping Power On the Move

Straits Times Index (STI) counter, Cosco Corp used to be a market darling and prices rocketed to a very high level and was seen around the $6 region before dropping to as low as the region of 60 cents. Recently, a massive buying up and accumulation was seen in the movement of this counter. Since March 09, it has more than doubled to the current price of $1.30.

This shipping counter in my personal opinion, will be a marking darling again and may revisit $2 ending 2009 before going further. Below is the progress of Cosco's FPSO project.

"Sun Rise", to be a Model for the FPSO Industry


"Sun Rise", a 20-year old VLCC, is undergoing conversion to an FPSO in COSCO Dalian Shipyard. The work scope for the conversion project involves the installation and/or renewal of 8,000 tonnes of steel structure, 350,000m of cables, of 800 tonnes of piping systems, the completion of 120,000m2 coating and the installation and commissioning of the topside modules. It is scheduled to be delivered in May 2010. After conversion, the completed FPSO will be stationed offshore Brazil.

It was our pleasure to interview Mr. Andy Lau Fook Weng, the MODEC construction manager for "Sun Rise". MODEC is an old friend and core client of COSCO Dalian Shipyard. Since "Sun Rise" entered COSCO Dalian Shipyard in March, the top management of COSCO Dalian Shipyard have paid close attention to the project and demanded that the highest construction standards be applied to the project. This is a large, time-constrained project which demands high standards in installation, welding and engineering. To ensure this work is handled efficiently, the project management team comprises experts from the construction department, the quality control department and the technical department. All the shipyard's hard work has deeply impressed Mr. Andy and satisfied the ship owner, and further affirmed the trust of MODEC as a key client.

Mr. Andy said that mistakes cannot be made on this conversion project. As a consequence, compared with other conversion projects, the construction control of "Sun Rise" is very strict, more precisely contolled, scientific and perfect. Both parties are confident that their commitment will ensure ¡°Sun Rise¡± is a model for the VLCC to FPSO conversion industry.

"It is my second time to be here in COSCO Dalian Shipyard in charge of a conversion project¡¯", Mr. Andy happily mentioned, "In the past two years, I have truly experienced the day-to-day development of COSCO Dalian Shipyard. Friendly and considerate shipyard staff are the friend of every customer. I Just feel at home", Mr. Andy said.

On the basis of his former experience with an FPSO conversion, Mr. Andy is full of confidence that COSCO Dalian Shipyard will complete the "Sun Rise" project to the high standards they have been set and reach outstanding achievement by continuous innovation and hard work.

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