CHEC to step up ef­forts across the re­gion

China Daily (Canada) - - ADVERTISEMENT - By ZHONG­NAN

China Har­bor En­gi­neer­ing Co is plan­ning to de­ploy more man­power and other re­sources in the Asia-Pa­cific re­gion, as part of the en­gi­neer­ing con­trac­tor’s global ef­forts to win more or­ders in what it sees as a “lu­cra­tive growth mar­ket.”

Even though the shift is still in the early stages, it could have mean­ing­ful eco­nomic im­pli­ca­tion for the trad­ing bloc as it co­in­cides with the re­newed push from other in­ter­na­tional com­pa­nies and com­mod­ity pro­duc­ers.

Mo Wenhe, chair­man of CHEC, said China has ac­cel­er­ated the ef­forts to boost re­gional con­nec­tiv­ity within the APEC re­gion to fur­ther im­prove re­gional eco­nomic in­te­gra­tion, as well as in pro­mot­ing the 21st Cen­tu­ryMar­itime Silk Road and the Asian In­fra­struc­ture In­vest­ment Bank.

“Since all the APEC mem­bers have long coast­lines and many ports, the 21st Cen­tury Mar­itime Silk Road will help link growth cen­ters such as Hong Kong, Sin­ga­pore and Los An­ge­les, as well as de­velop new re­gional hubs in­clud­ing Jakarta, Perth in Aus­tralia and Bu­san in South Korea,” saidMo.

A sub­sidiary of China Com­mu­ni­ca­tions Con­struc­tion Co Ltd, CHEC started to ex­pand to South­east Asia in the early 1990s. With more than 10,000 em­ploy­ees, the company now has more than 60 over­seas branch of­fices or sub­sidiaries serv­ing clients in over 80 coun­tries.

“Most of the coun­tries in the As­so­ci­a­tion of South­east Asian Na­tions rely on com­mod­ity, en­ergy and agri­cul­tural prod­ucts trade. How­ever, the short­age of good in­fra­struc­ture fa­cil­i­ties such as roads, bulk ter­mi­nals, con­tainer ship ports and crude oil docks, has af­fected gov­ern­ment rev­enues and peo­ple’s liv­ing stan­dards within the re­gion,” Mo said.

China has main­tained its po­si­tion as ASEAN’s largest trad­ing part­ner, with trade vol­ume of about $443.6 bil­lion in 2013, up 11 per­cent year-on-year.

Mo said im­prov­ing in­fra­struc­ture fa­cil­i­ties such as ports, roads and re­gional and in­ter­na­tional air­ports would help the APEC na­tions boost

Since all the APEC mem­bers have long coast­lines and many ports, the 21st Cen­tury Mar­itime Silk Road will help link growth cen­ters ...”

MO WENHE CHAIR­MAN OF CHEC

trade vol­ume be­tween China andASEANmem­bers

in 2013 ex­ports, peo­ple’s in­comes, so­cial wel­fare and em­ploy­ment rate.

Un­like other Chi­nese con­struc­tion com­pa­nies, which only fo­cus on en­gi­neer­ing, pro­cure­ment and con­struc­tion projects, CHEC has grad­u­ally trans­ferred its pil­lar business from EPC into new business mod­els such as build-op­er­ate-trans­fer, and pub­lic-pri­vate-part­ner­ship for both pub­lic and pri­vate sec­tors.

The Chi­nese company won a $2.39 bil­lion deal in the Asia-Pa­cific re­gion in 2013, ac­count­ing for 34 per­cent of its in­ter­na­tional business. year-on-year growth in trade vol­ume be­tween China and

ASEANin 2013

Backed by flex­i­ble business ser­vice pack­ages and lo­cal­iza­tion strate­gies, the company com­pleted the main sec­tion of the sec­ond Pe­nang Bridge in Malaysia, the prin­ci­pal part of 300,000-ton crude oil ter­mi­nal and chan­nel dredg­ing project of Sino-Myan­mar Crude Oil Pipe­line Project, as well as the pile-sink­ing con­struc­tion work of the Lae Port Project in PapuaNewGuinea.

CHEC also won con­tracts worth $2.3 bil­lion in the Asi­aPa­cific re­gion dur­ing the first three quarters of the year, ac­count­ing for 34 per­cent of its global business, in­clud­ing big-ticket projects — the (Phase I) Hong Kong Port in­fra­struc­ture con­struc­tion project of the Hong KongZhuhai-Ma­cau Bridge and the EPC projects of DBK-MRC Coal Min­ing and Trans­porta­tion Cor­ri­dor In­fra­struc­ture project in In­done­sia.

Diao Chunhe, pres­i­dent of China In­ter­na­tional Con­trac­tors As­so­ci­a­tion, which helps Chi­nese com­pa­nies fa­cil­i­tate new business in over­seas mar­kets, said Chi­nese com­pa­nies are at­trac­tive to gov­ern­ments and business part­ners in the APEC re­gion, be­cause un­like their com­peti­tors in Aus­tralia, South Korea and Qatar, they come with their own fund­ing model.

“Chi­nese com­pa­nies are ca­pa­ble of co­or­di­nat­ing fi­nance for projects through Chi­nese in­sti­tu­tions such as the Ex­port-Im­port Bank of China or China De­vel­op­ment Bank. They have built sev­eral in­fra­struc­ture projects in emerg­ing mar­kets like In­done­sia, Malaysia and Thai­land,” said Diao.

“They also do not gen­er­ally seek sov­er­eign guar­an­tees when work­ing with lo­cal part­ners.”

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