The rise of the central Jiujiang shipbuilding "Starlight"
Jiujiang, located in the middle reaches of the Yangtze River in Jiangxi Province, holds a strategic position that allows it to leverage its geographical advantages to enhance regional competitiveness. By revitalizing the Jiujiang River, the city can counterbalance the influence of Wuhan and support the expansion of the Yangtze River Delta. This development is expected to strengthen Jiangxi's overall economic power and establish a key hub on the Beijing-Kowloon railway corridor. Enhancing interactions between the Beijing-Kowloon region and the Yangtze River will further boost trade and industrial growth.
The National "Eleventh Five-Year" Port Development Plan has recognized Jiujiang Port as one of China's key water transport ports for expansion and opening up. This recognition underscores the city’s growing importance in the national shipping network and presents significant business opportunities for the local shipbuilding industry.
A major milestone was reached when China Aviation Technology Import and Export Corporation (AVIC) visited Jiujiang to explore the possibility of jointly establishing a large-scale shipbuilding base. A preliminary agreement was made, signaling the potential arrival of a 10 billion yuan annual output ship export base in the city. AVIC, one of China's largest import and export companies, has been involved in ship trading since 1996 and has long partnered with leading domestic shipyards like Shanghai Jiangnan Shipbuilding and Guangzhou Shipyard International.
Yang Fang, general manager of AVIC Guangzhou Company, expressed confidence in the collaboration, highlighting Jiangxi’s strong support for the shipbuilding sector. The project aligns with AVIC’s broader strategy to expand into shipbuilding and establish a major export base in Jiujiang.
Industry experts believe that if AVIC successfully sets up operations in Jiujiang, it would significantly elevate the scale and quality of shipbuilding in the province. It would also help solve challenges related to export ship guarantees, foreign exchange earnings, and investment attraction.
Li Xianshu, director of the Jiujiang Municipal Defense Science and Technology Office, emphasized the city’s existing shipbuilding infrastructure and its access to the Yangtze River. Through strategic planning and resource integration, Jiujiang aims to become an important shipbuilding base, promoting both ship construction and supporting industries.
Currently, AVIC is working with local authorities to set up a ship export trading company in Jiangxi, focusing on export agency services. Future plans include establishing a large-scale shipbuilding base in the city.
Private capital has also played a key role in Jiujiang’s shipbuilding boom. Zhejiang-based investors have entered the market, acquiring or building several shipyards. Companies like Yinxing Shipbuilding and Tongfang Shipbuilding have emerged as major players, significantly increasing production capacity.
Tsinghua Tongfang Group, known for its IT expertise, recently acquired a shipyard in Hukou County, marking its entry into the shipbuilding industry. The new company is already showing strong performance, with robust production and sales.
Local private enterprises, such as Jiangzhou United Shipbuilding, have also grown rapidly, driven by increased demand and improved efficiency.
However, challenges remain. While Jiujiang’s shipbuilding industry has expanded quickly, many companies still rely on external agencies for export financing, which limits their profitability. Addressing these issues will be crucial for long-term sustainability.
To stay competitive, Jiujiang must focus on "dislocation development"—specializing in high-value, high-tech ships that larger yards may not prioritize. Companies like Jiangxin and Jiangzhou are already making progress in this area, producing specialized vessels with strong market appeal.
Looking ahead, Jiujiang aims to expand its shipbuilding capacity to 350,000 tons by 2008 and 500,000 tons by 2010, with projected revenue reaching 8.6 billion yuan. The city also plans to develop two main shipbuilding bases—one for sea vessels and another for inland river ships—and strengthen the supporting industries.
Establishing a reliable export guarantee system and encouraging financial institutions to support shipbuilding enterprises are also key priorities. With continued investment and strategic planning, Jiujiang is well-positioned to become a major player in China’s shipbuilding industry.
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