Dredging, Exposure and Risk in China and South East Asia

Transcription

1 Dredging, Exposure and Risk in China and South East Asia Wai Yue LOH Chief Representative and Partner Ince & Co LLP Beijing Representative Office (UK) September 2017

2 Outline Introduction Opportunities for the insurance market Risks Suggestions & Observations 2

3 Introduction The concept of the Belt and Road comprises The Silk Road Economic Belt and the 21st-century Maritime Silk Road, also known as One Belt, One Road, which is abbreviated as OBOR or B&R. The Belt and Road Initiative is a development strategy proposed by China to create a massive economic zone connecting Asia, Europe and Africa through a network of roads, ports, bridges, tunnels and pipelines. OBOR consists of - On Land, Silk Road Economic Belt ( SREB ); and - At Sea, Maritime Silk Road ( MSR ). 3

4 Introduction -- 21st-Century Maritime Silk Road The 21 st Century Maritime Silk Road Initiative is a systematic project, and built through consultation to meet the interests of all the countries along the Maritime Silk Road. The Chinese government has drafted and published its vision and plan for promoting the implementation of this initiative. The initiative aims to connect countries across Asia, Europe and Africa more closely and promote mutual-benefited cooperation to a higher and new forms. 4

5 Opportunities for the insurance market -- Sea Reclamation off the port of the Philippines The MOA for the project of sea reclamation at the port of Davao has been executed by Mega Harbour and China Communications Construction Company Limited ( CCCC ) dredging group on 20 th October

6 Opportunities for the insurance market -- Gwadar Harbour in Pakistan Hydraulic and Reclamation Integrated Project of Pakistan National Defence Area is the first self-designed and general contracting overseas project undertaken by Chinese dredging company. 6

7 Opportunities for the insurance market -- Jeddah port in SAUDI ARAB The Jeddah Port RSGT Dredging Project was started in May Tianjin Dredging Co., Ltd. carried out the project and deployed major dredgers. 7

8 Opportunities for the insurance market -- The Port City of Colombo in Sri Lanka The project for reconstruction city of Colombo has been commenced since September 2014 by a Chinese company. This is the biggest overseas direct-investment project of the Democratic Socialist Republic of Sri Lanka.. 8

9 Risks -- TIAN DIAO caught fire and sank in the port of Jazan The engine room of the dredger of TIAN DIAO caught fire and remained ablaze for more than 72hrs at the port of Jazan, Saudia Arabia in 2014, due to lack of fire fighting services in the vicinity of the dredger. The total loss was around USD 20 million. 9

10 Risks -- KAI TUO 9 contact with the floating bridge at the port of Cameroon Kai Tuo 9 collided with a floating bridge in 2015, other side claimed EURO 13 million. Kai Tuo 9 is a small vessel and whilst that translated into a limitation fund of 1 million SDR, the claimant was successful in breaking limitation. 10

11 Risks -- JIN TAI sank at Port Elizabeth, South Africa JIN TAI lost the stability following the breakage of the positioning pile in good weather at port Elizabeth in This is resulted at the insurance claims around at USD 15million, including the towage charge from South Africa to China. 11

12 Risks -- TIAN XI towed and sank in the South China Sea TIAN XI sank due to bad weather during her towage voyage from Guangzhou to the South China Sea in Feb The total loss was around USD 20 million. 12

13 Risks -- Machine Damage The steel pile of the dredger was broken and the losses came to around USD 500,000. XIN HAI E crankshaft of the muddy pump of No.2 Auxiliary machine was damaged due to dredging and heavy impact, losses totaled around USD 1million. 13

14 Risks -- Machine Damage XIN HAI YING, bucket wheel damage caused gear box and electric engine damage. The insurance claim was around USD 1million. 14

15 Suggestions and Observations Machinery damage Towage Fire Loss of Stability Shortage of experienced salvors Poor political and legal environment 15

16 Thank you for your attention and I am now at your disposal for questions. Wai Yue LOH Chief Representative and Partner Ince & Co LLP Beijing Representative Office (UK) waiyue.loh@incelaw.com Tel: +86 (0)