Several shipbuilding sources that TradeWinds has spoken to said they have heard Jiangsu Rongsheng Heavy Industries is one of the shipbuilding companies that Vale has approached for VLOC newbuildings.
However, they are doubtful that the shipyard is able to make a comeback to the industry since it has sold most of its valuable equipment and a large gantry crane.
“This shipyard has not been in operation for several years and to restart its operation, it will need substantial funding,” a shipbuilding expert said.
“Who is going to lead the shipyard? There is a tight supply of shipyard labour force and where will Rongsheng get its workers? Who is going to issue refund guarantees for the newbuildings?”
Jiangsu Rongsheng was established in 2006 during the shipbuilding market boom. The shipyard was then the largest private shipbuilder in China with four dry docks and was able to produce 5m dwt of vessels per year. However, it stopped contracting newbuildings in 2014 following the global financial crash.
According to Clarksons’ Shipping Intelligence Network, Jiangsu Rongsheng delivered 94 ships between 2008 and 2017, of which 16 were VLOCs of 400,000 dwt.
The Chinese shipyard was also reputed for building suezmax tankers. Shipping companies that ordered newbuildings there include John Fredriksen’s Frontline, Golden Ocean, Sinokor Merchant Marine, Teekay, CMA CGM, Dynacom among others.
