CHINESE MARITIME R&D. - in ship building, ship equipment and offshore engineering

Transcription

1 CHINESE MARITIME R&D - in ship building, ship equipment and offshore engineering AUGUST 2014

2 TABLE OF CONTENTS CHINA S MARITIME R&D LANDSCAPE... 3 THE GOVERNMENT S ROLE IN CHINESE MARITME R&D... 4 INNOVATION DRIVERS IN CHINESE MARTIME R&D ) RESEARCH SUPPORT... 5 NATIONAL HIGH-TECH R&D PROGRAM THE NATIONAL KEY TECHNOLOGY R&D PROGRAM... 9 NATIONAL SCIENCE AND TECHNOLOGY PROJECTS MIIT S HIGH-TECH SHIP BUILDING R&D PROGRAM IPR IN THE CHINESE MARITIME SECTOR ) INDUSTRY SUPPORT TECHNOLOGY AND EQUIPMENT IMPORT TAXATION POLICY KEY TECHNOLOGY TRANSFER PROGRAM GEOGRAPHIC UNDERSTANING OF THE CHINESE MARITIME SECTOR STAKEHOLDERS ) INDUSTRY OPINIONS P A G E

3 CHINA S MARITIME R&D LANDSCAPE China s impressive growth has facilitated substantial investments within different R&D sectors. The maritime sector is no exception in this matter, currently undergoing huge developments in various areas. The Chinese maritime R&D sector encompasses more than looking at a few technologies or a single industry. Its landscape is much more complex than so, which this report seeks to uncover. This report is the document following a presentation in Copenhagen in May 2014 for Danish maritime interested parties, academia, organizations and companies. It is based on a mapping of the Chinese R&D efforts in maritime, and presents key findings about how China is developing this sector: what are the different innovation drivers in this sector, and who are the different stakeholders. The report focuses on three R&D sectors in the maritime industry: ship building, ship equipment, and offshore engineering. It does not focus on shipping and marine science e.g. fishery. The R&D focus sectors of this report are presented in the figure below: China is a world-leader in ship building but the ships are often valued at a lower price than vessels from competing ship building nations. The ship equipment industry is growing due to the increased building but still more than 60% of the installed equipment is imported. The offshore engineering sector focuses on oil and gas drilling and exploration. Offshore engineering projects influence the Chinese maritime sector, which is also why it is an important segment for a R&D mapping. 3 P A G E

4 THE GOVERNMENT S ROLE IN CHINESE MARITME R&D Chinese maritime R&D is attached to the backbone of the Chinese government s strategic development plans. Since 2003 the government has issued development plans for the maritime sector more often, which underpins the importance the Chinese leadership puts on this sector. Within each plan, specific development activities and industry focus areas are given. These government development plans are important to know for stakeholders interested in developing activities in the Chinese maritime sector. They announce the specific technology areas, which will receive government support in the following time. Furthermore, these documents are the baseline upon which individual industrial implementation programs are designed. Year Publisher Development Plan 2003 State Council National Outline for Marine Economy Development Plan 2006 State Council Medium and Long Term Development Plan for Shipping Industry ( ) 2009 State Council Adjustment and Revitalization Plan of the Shipbuilding Industry ( ) 2010 NDRC Innovation Development Strategy of Marine Offshore Equipment Industry ( ) 2010 State Council State Council s Decision to Accelerate the Development of Strategic Emerging Industries 2011 MOT 12 th Five-Year-Plan on Transportation 12 th FYP on Land and Waterborne Transportation s Technology Development 12 th FYP on Land and Waterborne Transportation s Energy Conservation and Emission Reduction Development 2012 State Council Notification on National Marine Economy 12 th Five-Year- Plan Development 2012 State Council 12 th Five-Year-Plan of Strategic Emerging Industries 2013 MIIT 12 th Five-Year-Plan on Shipping Industry 2013 State Council Implementation Act on Accelerating Structural Transformation and Upgrading Reform of Shipping Industry ( ) 2013 MOT MOT s guidance on promoting application of LNG on seaborne transportation industry 4 P A G E

5 All documents are public and can be accessed through government websites for more information. INNOVATION DRIVERS IN CHINESE MARTIME R&D The Chinese government has published The National Outline for Medium and Long Term Science and Technology Development, which guides the landscape of innovation in China for the next 15 years. This is the mother publication on strategic development plans within innovation in China. In this publication, different plans, programs, and projects are enlisted, and they each target either research and science purposes, or industrial technology-oriented purposes. The innovation drivers in the Chinese maritime sector are thus based on two main programs by the government: 1) research support and 2) industry support. The National Outline for Medium and Long Term Science and Technology Development: 1) RESEARCH SUPPORT NATIONAL HIGH-TECH R&D PROGRAM THE 863 The National High-tech R&D Program the 863 is a major focus for this report, as we find many programs within the maritime sector here. Furthermore, the National 5 P A G E

6 Key Technology R&D Program is also highlighted in this report, as we here find two major maritime programs. The 863 programs signify the preferential technology direction they indicate technology and industrialisation trends, and they underpin key innovation players. The 863 programs involve a scholar committee with more than 200 scholars in different advisory boards, which oversees the 863 projects and programs. The research themes in the 863 programs are revised yearly, and normally not more than 2 projects are funded each time. An 863 project will receive funding in the million RMB range, and only applies to Chinese enterprises and stakeholders. If a project gets 863 funding it signifies its importance and key role in the overall strategic development plan. The following technologies are the focus point for the 863 programs, and are strategically important for the Chinese economy: 1. Information technology 2. Bio and medical technology 3. New materials technology 4. Advanced manufacturing technology 5. Advanced energy technology 6. Resources and environmental technology 7. Marine technology 8. Modern agricultural technology 9. Modern transportation technology 10. Earth observation and navigation Two of the above technologies include maritime R&D elements, with the following developments: Marine technology Year Project 2011 Development of dynamic positioning system on ships 2012 Key technology and equipment development for high frequency ground wave radar 2012 Technology and equipment development for deep-water oil and gas exploration Modern transportation technology Year Project 2007 Construction technology development for light structured deep-water terminals on shallowly-buried rock foundations 2009 Automated container dock equipment and demo project 2011 Technology development for integrated monitoring and control systems on ships 6 P A G E

7 2012 Key technology of special high-tech ships, energy conservation and environmental technologies of new ships 2014 Hybrid autonomous cruise wave glider observation system EXAMPLES OF 863 PROGRAMS To provide a better understanding of the 863 programs, please see the below examples. These examples will provide insights into the technologies sought developed, where the focus point is, which year they have been developed, and how much money that is allocated for the projects. The purpose of these examples is only to showcase which directions the programs have taken. 7 P A G E

8 *The picture to the left is a LNG (Liquid Nitrogen Gas) carrier by CSSC-Hudong Zhonghua. Hudong Zhonghua is the first yard in China to produce LNG carriers. The picture to the right is a hybrid solar powered ship by COSCO. 8 P A G E

9 NATIONAL KEY TECHNOLOGY R&D PROGRAM National Key Technology R&D Program has less strategic value compared to the 863 programs and is also monitored less by the government, but they support and supplement the 863 programs. As the 863 s, they indicate where innovation in the Chinese maritime sector will happen. Two major projects have been undertaken (see description below): Year Project 2006 Development of ship ballast water purification technology and marine oil spill emergency response key technology 2012 Development and optimization of AIS (Automatic Identification System) ship navigation system extending functionalities. 9 P A G E

10 * Very little information is available from PLA (People s Liberation Army), but apparently they have some activities within maritime R&D and collaborate with other stakeholders as well. 10 P A G E

11 NATIONAL SCIENCE AND TECHNOLOGY PROJECTS Other major projects - one in ship building and one in offshore engineering which have received much national support are listed below. The objective of these projects is to aggregate industrial and financial support to enable breakthrough in 16 key strategic technology fields within the timeframe of The focus of the National Science and Technology Projects is to develop the 16 key technology fields. These projects are not as structured as the 863s and the National Key Technology R&D Programs. However, since resources has been allocated for the maritime projects below, the National Science and Technology Projects showcase the ambitions China have to 1) complete its manufacturing capabilities for high-value maritime technologies, and 2) to secure future energy supplies through these developed maritime technologies. Project 1 Advanced numerical-control (NC) machine and basic equipment manufacturing 2 Exploration technology for large oil and gas fields and coal bed methane fields Target Increased NC s machine competence to increase advanced manufacturing competence applied for ship building industry; enhance China s occupation on entire chain of ship building manufacturing industry Increase China s domestic need for highvalue ships and related oceanic engineering products MIIT S HIGH-TECH SHIP BUILDING R&D PROGRAM The Ministry of Industry and Information Technology are also administering the Chinese maritime sector, and oversees various projects and programs within Chinese maritime R&D. MIIT is also a place where Chinese stakeholders can apply for money for various projects besides the already mentioned Ministry of Science and Technology (MOST) administrative programs and projects. MIIT introduce policies and enact laws; establish regulations and standards; coordinate government resources to provide support to industry development; implement industry promotion measures; and provide industry specific technology guidelines. MIIT publish research directories on a yearly basis through research institutes. The MIIT s high-tech ship building R&D program is directly attached to the backbone of the Chinese ship building industry, and supplements the national R&D system administered by MOST. 11 P A G E

12 Overview of MIIT s High-tech ship building R&D programs during the last three years: When Programs Focus of program areas Large vessels, including 3000 KW high speed diesel engine design and manufacturing; LNG-FPSO, LNG-FSRU technologies; double engine key technologies etc key technology directions, 22 technology standards research directions, 3 major projects Further development of vessel types with hightech solutions, including new LNG liquid cargo forecasting system, 45 Kton container Roro ship comprehensive design technology, 80 Kton chemical vessel design etc. Super energy saving high-tech engineering; clean energy engines demonstration projects; special vessel design. The detailed information regarding the published technology and research directions are available through MIIT. IPR IN THE CHINESE MARITIME SECTOR They number of patents in the maritime sector has increased over the years, which underpins the overall increased development in the sector. According to State Intellectual Property Office (SIPO), the total amount of ship building industry related patents grew from 2001 to Statistics released show that in 2010, China s shipbuilding industry received a total of 1458 domestic patent applications, which is almost 5 times of that in Subcategory B63B B63C Descriptions Ships or other water vessels and ship equipment Instruments relating to pushing ships into water and out of dock; life-saving in Invention patents Total Utility patents Total By By P A G E

13 B63G B63H B63J water tasks; devices for salvaging or searching for underwater target Attach or defence equipment on ships; mines; submarine vessels and aircraft carrier Propulsion or steering gear Auxiliary equipment ) INDUSTRY SUPPORT TECHNOLOGY AND EQUIPMENT IMPORT TAXATION POLICY In China s long term mission to support maritime innovation it is acknowledged that China needs to import equipment for the maritime sector in order for the sector to grow. Thus, tax reduction and exemption on imported equipment is provided to Chinese companies in need of this high-end equipment. This policy is supported by a product list. Chinese enterprises are exempt from custom tax and import VAT if they choose to buy products from this list. This list is revised annually and updated by 6 Chinese government agencies including MIIT, and is available to the public. When technologies and production methods are mastered in China, related products will be removed from the list. New technologies and production methods may find its way onto the list accordingly. Regarding the maritime sector, there are currently 13 maritime technologies on the product list. Below is an example of the maritime technology sections in the list. For more detailed information and questions about the list, please contact Innovation Centre Denmark, Shanghai. Name Large offshore oil project equipment Jack-up drilling platform Semi-submersible drilling platform Large high-tech and high value ships Large vehicle carrier Scientific surveying vessel Ro/Ro passenger ship Rail/train ferry carrier Large cutter suction dredger Large drag suction dredger Offshore floating production storage and offloading units Deep water pipe laying vessel (platform) Tech specific requirement Operating depth 300 ft. Operating depth 500 m Capacity no smaller than 5000 vehicles Sea vessel Large Large Production rate no smaller than 3500 m3/hr. Spoil hopper capacity no smaller than 10,000 m3 Storage capacity 1000 K barrel Water dept. 2000m,tensioner capacity 75ton,hose- 13 P A G E

14 reeling unity capacity 75ton Large floating crane vessel Loading capacity 1200 ton,elevating height above deck 85m,installed power 3500KW Marine and intertidal wind turbine installation vessel Lifting capacity 500 ton,capable of installing offshore wind turbine no smaller than 5 Mw Independent C-type LNG carrier Capacity 1000m3 High performance deep water geophysical exploration ship 3~16 cables equipped High power diesel engine and other key supplying equipment for marine applications Large ships, marine engineering equipment KEY TECHNOLOGY TRANSFER PROGRAM The Key Technology Transfer Program is to ensure that research and development in R&D centres is transferred directly into and utilised in industries, including the maritime industry. This program has been launched by the government to support enterprise innovation and to make sure that advanced high-tech products are industrialized. In 2012, there were more than 556 transfer projects, with 5,6 million RMB in total support funding. GEOGRAPHIC UNDERSTANING OF THE CHINESE MARITIME SECTOR The Chinese maritime sector is centred on China s three major rivers: the Yellow River to the North (Dalian), the Yangtze River in the middle (Wuhan and Shanghai) and the Pearl River to the South (Guangzhou). Dalian and Shanghai are the North and South centres for maritime activities in China. Below is a map of the different maritime centres and what kind of maritime activities is undertaken where. 14 P A G E

15 STAKEHOLDERS The stakeholders in the maritime sector in China are the enterprises, research centres and universities, and the government institutions. The two major enterprises are CSIC and CSSC, which are both state-owned, and with many subsidiaries. In the below maps and charts you will find 1) enterprises and ship builders, 2) universities and research institutions, 3) the government stakeholders, 4) CSSC, 5) CSIC, and 6) China Association of the National Shipbuilding Industry. 15 P A G E

16 1) Enterprises and ship builders 2) Universities and research institutions 16 P A G E

17 3) Government stakeholders State Council NDRC: National Development and Reform Commission MOST: Ministry of Science and Technology MIIT: Ministry of Industry and Information Technology MOT: Ministry of Transportation MSA: Maritime Safety Administration SAT: State Administration of Taxation MOF: Ministry of Finance NEA: National Energy Administration 4) CSSC China State Shipbuilding Corporation (CSSC) is a shipbuilding conglomerate enterprise under direct administration of China s central government. Its subsidiaries include Jiangnan Shipyard, Hudong-Zhonghua Shipbuilding, Shanghai Waigaoqiao Shipbuilding, and the research centres include CSSC-systems engineering research institute, CIMTEC (China ship building industry comprehensive technology economic research institute), and CSSC-systems engineering research institute. 5) CSIC China Shipbuilding Industry Corporation (CSIC) split from CSSC in 1999, and became a large, central government administrated ship building conglomerate, with subsidiaries, affiliated companies and research institutes around Dalian in North China. CSIC employs about 140,000 people in its 46 companies and 28 research institutes, with total assets up to 190 trillion RMB. The subsidiaries include Dalian Shipbuilding Industry Co., Ltd., Bohai Shipbuilding Heavy Industry Co., Ltd (large national key equipment development and manufacturing base), Wuhan Marine Machinery Plant Co., Ltd and the R&D centres include CSIC-701 (vessel design institute), CSICR-702 (China Ship Scientific Research Center), CSIC-703 (Harbin, ship power system), CSIC-704 (Shanghai, Auxiliary electrical equipment systems), and CSIC-707 (Jiujiang, precision mechatronics). 6) China Association of the National Shipbuilding Industry China Association of the National Shipbuilding Industry (CANSI) is an industry network organization under direct administration of State Administration of Science, Technology and Industry of National Defence. CANSI has 530 members, mostly are large and medium enterprises and institutes, covering 90% of China s National Shipbuilding Industry output. CANSI sits in Beijing and bears responsibility in assisting Chinese authorities administration over Chinese industries. Furthermore, CANSI conducts government projects including industry research. 17 P A G E

18 3) INDUSTRY OPINIONS Throughout the research, we are grateful for the insights provided by a number of experts regarding Chinese maritime technologies R&D status. The interviewees come from well-known research institutes and universities, including Shanghai Merchant Ship Design and Research Institute (CSSC-SDARI), China Ship Scientific Research Center (CSIC-702 Research Institute Shanghai Branch), Dalian Maritime University and Shanghai Jiaotong University etc. It is generally noted that China s maritime industry, especially those around ship building sectors, has experienced fast development in the past several decades. The value-intensive ship design competence has been awarded as globally competitive, comparable with those from Japan and Korea. The well noted performance should be credited to accumulated case experiences as well as abundant R&D investments, largely driven by commercial orders. According to our interviews, the national leading design institute SDARI has received more than 100 commercial orders of scales above 64,000 ton in 2013, considerably outpacing many in the global market. Another leader, CSIC-702 Research Institute, has materialized more than 40 million RMB commercial income in its Shanghai Branch office during first half of 2014, which is a major source of its R&D finances. The significant input into R&D nationwide has materialized into relatively completed research facilities being established, including advanced deep water towing tanks etc. In addition, there is close collaboration between Chinese and foreign advanced design communities. Examples include Hamburgische Schiffbau-Versuchsanstalt (HSVA) in Germany and the Danish maritime research institute Force Technologies. However, it cannot be overlooked that the Chinese design and development capabilities in the key ship equipment industry still lags behind their leading foreign counterparts. One notable example was given on marine engine development by Professor Zhang Weijing from Shanghai Jiaotong University. He noted that due to discounted tech content and performance, Chinese engines can only survive at a fraction of the prices offered by those manufactured in Japan and Germany, and in relatively single product lines. China still does not house the development capabilities of advanced engines, such as LNG fueled types, like the European competitors are able to. In addition, Chinese manufactures cannot provide comparable global service assistance, further jeopardizing its global competitiveness. The Chinese government has issued consistent measures like increased R&D spending, regulating domestic order to prioritize local purchases etc., hoping to help boost the Chinese developers overall performance. However, it is perceived as a time consuming task and would require longer time to achieve. Another noted equipment type is ballast water treatment systems. According to our scout, many research projects have been executed with published papers, but that no successful domestic products have survived in the commercial market yet. Thus, it is commonly observed that 18 P A G E

19 newer oceanic vessels and high-value ships are equipped with western and Japanese power systems, whereas river- and coastal vessel and cheaper ships more often are equipped with Chinese power units for cost concerns. Due to the fact that Chinese ship yards have occupied a sizable portion of the global market, yet not so much from the marine equipment industry due to disadvantaged performance, we ve asked our interviewees about who has the dominant decision power on marine equipment purchases among ship owners, ship yards and design institutes. Answers vary. While one says that the ship owner has decisive power and can conduct direct sourcing without the design institutes or the shipyards involvement. Meanwhile, others state that the design institutes and shipyards introduce choices of sub-providers as part of the complete offer to ship buyers, who then make the final purchasing decision. In addition, there is also a tendency that shipyards and design institutes are more involved in the sourcing procedure. This is because of increased participation of finance institutions backed by the Chinese government providing finance to international orders. The engagement will involve some favorable domestic conditions in China, including prioritization of domestic purchases of key ship equipment. With regards to knowledge about Danish maritime technologies, most comments have been about Force Technology, who has offices in Beijing and who has collaborated with a number of Chinese design institutes and shipyards. Otherwise, Danish engagements with the Chinese maritime research and development community are limited today. However, most interviewees welcome Sino-Danish collaborations. 19 P A G E