Lloyd’s Register and the China Classification Society team up
Lloyd’s Register and the China Classification Society team up to offer long-term technical support to China’s fast-expanding rail industry
Joint venture offers reliable independent assurance to sector’s growing legion of buyers and suppliers
Lloyd’s Register Asia and the China Classification Society (CCS) have joined forces to support China’s booming rail industry just as the country’s manufacturers ramp up production to supply a flood of domestic projects – and set their sights firmly set on the international marketplace.
CCS-LR Technical Services Ltd is a 50-50 joint venture between Lloyd’s Register Asia, a member of the Lloyd’s Register Group, and Far East Marine Surveyors Ltd, a wholly owned subsidiary of CCS.
“China’s rail industry – from metros to high-speed rail – is one of the most exciting commercial arenas in Asia and we believe the formation of this joint venture will create the market’s leading provider of independent assurance services,” said Richard Sadler, Chief Executive Officer of Lloyd’s Register. “It brings together two organisations with established reputations for integrity and quality to support the development of safe and efficient rail networks, a relationship that will ultimately enhance the reputations of Chinese suppliers in the international marketplace.”
According to a January 2009 report by consultants McKinsey, China’s annual market for rail equipment – from rolling stock and components to signalling systems – will grow to an average of US$50 billion from 2009 to 2013, compared to US$10bn a year in the 2004 to 2008 period.
With so much at stake for the industry’s buyers and suppliers, the Lloyd’s Register-CCS joint venture will offer unrivalled technical expertise and long-term leadership, helping China’s rail firms to blend international standards for safety, quality and sustainability into the development processes for local products, says Sadler.
Li Kejun, the President of CCS, said CCS and Lloyd’s Register had an established foundation of co-operation in the marine sector. Further co-operation in the rail transport sector, he said, would fully utilise their combined reputations, brands, technology and international resources to support China’s rail construction boom.
“This co-operation between CCS and Lloyd’s Register is exhilarating. With China actively promoting the transformation of its economic-development model, rail transport, as an important form of infrastructure for the sustainable development of Chinese economy, is entering a period of rapid development,” said Li. ”There are many factors providing a broad market of prospects for our business development.”
He said it was wholly appropriate for two class societies to join to together to support the safe and sustainable development of China’s rail industry.
“Since their inception, classification societies have played the role of professional quality inspectors, as well as certification and risk-control organisations. Class has gathered rich technical expertise and experience from the demanding shipping sector over hundreds of years and it has developed an advanced scientific, risk-control system. It is natural for us to apply that knowledge to the rail-transport sector. Supporting the safe and green development of Chinese rail is the mission CCS should carry out as China’s class society.”
Railways were the No. 1 transportation-development priority in China’s 11th five-year plan (2006-2010) as it looked to expand the national rail network to 120,000km by 2020, up from 75,000km in 2005. Even so, according to research sponsored by Lloyd’s Register Rail (Asia) Ltd, the related investment during the next five years is expected to be 450% higher than that of the previous five years.
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