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Dual Fuel + Local Manufacturing ...

by ‎04-26-2012 03:28 AM - edited ‎04-26-2012 04:00 AM

... - are these the future signature characteristics of engines on Chinese inland waterway vessels?

 

“The majority of us are running at a big loss, and the next three years for an inland waterway shipping company mean either just surviving or going bankrupt.” That’s what the General Manager of one well known, state-owned shipping company told me when I met him in Shanghai in the fall of 2011. 

The global economic recession, reduced demand of inland cargo transportation, more newly-built railways and oil pipelines parallel to the waterways, an excessive number of emerging players and prevailing “beach shipbuilders,” and vessel overcapacity after a peak shipbuilding year in 2008, all led to the current, brutal low-price competition among inland waterway shipping companies. 

Since fuel costs are around 40% of the total operating costs for them, using residual or heavy fuel oil becomes a substantial cost-cutting measure. Meanwhile, many companies are also looking at diesel-LNG dual fuel technology to retrofit engines on their fleet in preparations for the coming challenges of emission regulation.

Today, local brands/models such as the Zichai 210, Weichai 200, Guangchai 230, ND 300, and Shangchai 135, dominate the Chinese inland waterway market because local manufacturing, heavy fuel oil capability, and low price are the common engine buying criteria. As 2015 (the deadline year to attain an 80% localization rate of marine equipment on built-in-China vessels) approaches, most Chinese shipyards might have to buy only locally-made brands.

Some say dual fuel technology won’t bloom in China and that the localization requirement is just “thunder without rain.” What would you say?

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About the Author
  • In 2005, I started my career at Caterpillar as an intern in Kiel, after that I worked as a student and then a temporary employee. I finally became a permanent employee in 2008, working at the Marine World headquarters in Hamburg. Through all these years I was supporting and leading Marketing projects from various areas, including Electronic Sales Tools, Shows, Novelties etc. By May 01, 2011 my job role changed to the current one. In this position I am leading several Electronic Marketing projects such as all Marine and Oil & Gas Social Media activities.
  • I am a 33 year employee of Caterpillar and have focused on engines my entire career. For the last 18 years I have worked in the Marine group in various capacities. Since 2004 I have been the Global Marketing Manager for the Pleasure Craft segment, managing all trade shows, advertising, events, and NPI (New Product Introduction) launches.
  • I joined Caterpillar in 2001 in the Extended Service Coverage (extended warranty) department of Cat Insurance (division of Cat Financial). I have always loved the water, ships, boats and the challenges of this industry and moved to Caterpillar Marine Power Systems (CMPS) in 2007. I was fortunate to be able to work at CMPS Headquarters in Hamburg, Germany for 2 years and now reside at our Marine Center of Excellence in South Carolina, USA. As the Marine Parts Manager for Cat Marine Parts I am able to work cross functionally with our regional product support teams, our extensive dealer network, customers and bring this knowledge and customer expectations to Caterpillar's incredible resources to design new and innovative product support solutions to meet our customer expectations. This gives me great pride and enjoyment to meet and exceed your expectations and promote the Cat Marine Brand.
  • After around 10 years of good time in mineral & metal industry, the destiny has guided me through BMW, ThyssenKrupp to the Caterpillar station. At the moment I'm serving as a Six Sigma Strategy Black Belt in Caterpillar Marine Power System.
  • I joined the Caterpillar Team 2007 and worked in several positions most likely in Product Support. 2008 I passed the 6 Sigma Black Belt Training and has leaded various sales and process related projects. After the certification as a 6 Sigma Black Belt I joined the CMPS Product Support Team as a Global Marketing Representative.
  • Originally from Spain, I moved to Hamburg, Germany, in 2010 to write my Master’s Thesis in Industrial Engineering. Upon its completion, I had the opportunity to join Caterpillar Marine Power Systems as an intern at their headquarters. During this period, I supported, in various capacities, sales into the Cargo and European Inland Waterways markets, as well as Offshore Wind opportunities. I am currently working as a Junior Territory Sales Manager in the Europe, Africa, Middle East and CIS Sales Team.
  • I have been involved in sales and marketing of Caterpillar marine products for almost 45 years including 10 years in the U.K. where I worked on North Sea oil and gas projects. For the past 35 years I have various roles within the marine business of Toromont Cat where I have assembled a portfolio of Caterpillar and MaK powered new construction and repower projects including ferries, Great Lakes bulk-carriers and self-unloaders, Coast Guard vessels and pleasure craft. I admit that my knowledge has come from a hands-on approach to engine sales by wearing coveralls and a hard hat rather than a business suit. I am based in Toronto and am an active member of the C.I.Mar. E. Great Lakes Branch and participate in SNAME Great Lakes/Great Rivers meetings in the U.S.
  • Born in Brazil, Luiz joined the Caterpillar engine team in 1998 and has worked in different positions covering marine service, product application and sales. Currently he is a Black Belt under the Caterpillar Marine group.
  • A veteran of 12.5 years Naval service, in the U.S. Naval Nuclear Propulsion Program. 3.5 years as a Marine Application and Installation Engineer at a CAT dealership. I have been working for Caterpillar Marine Power Systems since 2008. My time at Caterpillar has been spent helping to develop global emissions solutions for 3500 marine engines.
  • I am the Asia Pacific contact for marine parts marketing. With marine customers being the most mobile group, with operations spanning the entire globe, there are always new challenges and learning opportunties to engage in. Life in marine is never boring!
  • A maritime academy graduate and a 17 year employee of Caterpillar with 25 years of marine experience, currently managing the Caterpillar Marine Power System Product Support Division representing all product health, product support, parts sales and distribution development activities for Cat and MaK brand marine engines.
  • I ensure that our Cat global dealer network has the tools required to support our Propulsion Solutions products including our Cat Three60 Precision Control.
  • I have been at Caterpillar for nearly 31 years. All this time has been related to Diesel engines, with the first 23 years in Fuel Systems, the next 3 in the Engine Center, and the last 4 here in Hamburg, Germany, as the Worldwide Demand Manager for Marine and Petroleum MaK engines. In this role, I touch many areas, from concept to delivery, from shipyard to factory. I work with Dealers, Sales Managers, Customers, Accountants, and Order Processors, all the way to the factory floor. Those who know me know that I wouldn’t have it any other way.
  • I am a Mechanical Engineer with 17 years of experience with Caterpillar Engine Products, currently working at Caterpillar Marine Power Systems Headquarters in Hamburg, Germany. I am responsible for product support and Dealer development, and support dealers in the United Kingdom, Ireland, the Mediterranean, and the Middle East.
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