COSCO SHENGSHI Delivery

2011-3-3

On February 16, the first 5000 unit PCTC built by COSCO Zhoushan Shipyard, was named COSCO SHENGSHI and successfully delivered to GUANGZHOU OCEAN SHIPPING CO., LTD. The delivery was timed perfectly for the shift in the export of Chinese brand cars from relying on transport provided by foreign vehicle carriers to that provided by domestic ships.

Mr. Guo Jing, Chief Operating Officer of COSCO Shipping Co., Ltd., Mr. Gao Yongjun, the manager of Ship Planning Office of the Department of Strategic Development of COSCO Group, Mr. Tan Li, General Manager of the development Dept of Guangzhou Ocean Shipping Co., Ltd., Mr. Chen Daming, General Manager of COSCO International Ship Trading (Beijing) Co., Ltd., Mr. T. Hayashi, General Manager of NK Class in China, and Mr. Zhan Shuming, Chief Engineer of COSCO Shipyard Group, were among hundreds of people who attended the ceremony.

The vessel is the first in the series of two 5000 unit PCTCs, jointly designed by COSCO Zhoushan Shipyard and Shanghai Design Institute, and registered with NK Class.

The 14,500dwt PCTC is a state-of-the-art complex product with high value-added features. It measures 182.8m in length, 32.2m in breadth, 14.95m in depth, and has a navigation speed of 20 knots. With three adjustable decks, it can satisfy the height requirements of different vehicles and load 5000 standard vehicles. The car carrier performs well in terms of anti-distortion, and features a small ship type, high power, and fast speed. Meanwhile, the highly automatic ship can achieve one person operation by means of Electronic Charts, GPS navigation and other advanced equipment.

With the rapid development of the automobile industry in China, automobile exports have soared in recent years, but the development of car carriers has lagged behind Japan, South Korea and the European countries. In response to the requirements of the Chinese government, COSCO Group has decided to establish its own car carrier fleet, unblocking the bottleneck of the ocean shipping for China's auto exports.

In August 2006, COSCO Group signed 15-year strategic cooperation agreements with 17 auto companies such as Chang'an Automobile (Group) Co., Ltd. and Chery Automobile Co., Ltd. Following that, Guangzhou Ocean Shipping Company kicked off the car carrier project. As one of the most promising shipbuilding yards under COSCO Shipyard¡¯s umbrella, COSCO Zhoushan Shipyard was honored to be the pioneer of the decision-making and shoulder the big responsibility of building the first 5000 unit PCTC.

The global financial crisis had a dramatic impact on the world shipping market during the PCTC construction period. Both the owner and yard faced unprecedented pressure. However, they made a common choice spontaneously: to take the initiative to overcome the adverse effects of the financial crisis, understand and actively cooperate with each other, all for the earliest possible delivery and the achievement of the win-win goal. The successful delivery of COSCO Shengshi is also a generous gift COSCO Shipyard and Guangzhou Ocean Shipping jointly offered to celebrate the fiftieth anniversary of the COSCO Group in 2011.

COSCO Shipyard Group Co. Ltd. press release