CMC Bangladesh Office - Trade Network - China National Machinery Import & Export Corporation

COAL MINING & POWER GENERATION
As an undisputable pioneer in Bangladesh coal mining industry, CMC entered the contract with Petrobangla for Barapukuria Coal Mine Development Project under Chinese supplier’s credit in early 1994. With production capacity of one million tons per year, Barapukuria Coal Mine was dedicated to the diversification scheme of Bangladesh energy. CMC commenced physical construction in mid 1996 and completed in June 2005, during which period many major

unforeseeable natural difficulties and impediments were overcome by joint efforts of CMC and Petrobangla. It is widely trusted that the successful development of Barapukuria Coal Mine by CMC will lead to booming of Bangladesh coal miningindustry, and predict realization of the Bangladesh energy diversification scheme.

Based on the promising development of Barapukuria Coal Mine, CMC was awarded with the contract by BPDB for construction of Barapukuria 2X125MW Coal Fired Power Plant Project in July 2001. After threes years construction in full swing since November 2002, the first unit was successfully put in operation and synchronized in mid November 2005, while the second unit is scheduled to meet the same target in March 2006. Barapukuria Power Plant is the first coal fired electricity generation project ever in Bangladesh history. The successful implementation of the project will provide much more reliable energy to the northwest districts of the country, playing an important role in the development of Bangladesh national economy.

Railway Business
As one of the largest state-owned foreign trade corporations, CMC has been playing main role in railway product foreign trade area since the foundation of the People’s Republic of China. Its business scope covers: Imports and exports of railway Locomotives and vehicles, railway transportation equipments, metro transportation equipments; Railway engineering project contracting. Railway business has been put in the highway particularly after a subsidiary CMC broadway company was founded in 1990’s. In Mar.2002, CMC broadway was transformed into the current Railway Transportation Business Department of CMC.

In the past years, CMC has exported hundreds of locomotives and vehicles, large amounts of bogies, rails, sleepers and railway maintenance equipments to Thailand, Burma, Bengal, Vietnam, Pakistan, Iran, Botswana, Sudan, Saudi Arabia, USA, United Kingdom, etc. Meanwhile, CMC also succeeded in the international market of Communication and Signaling system, railway exclusive equipments and metro EMUs. In 2000 and 2002, CMC signed two contracts with Iran for export of 217 CBU metro EMUs, contract value amounts to USD 138 million, and 77 CKD metro EMUs, contract value amounts USD 40 million. The finance of both contracts were arranged by CMC and based on the buyer’s credit provided by China EXIM Bank. In 2001, CMC signed the contract with Pakistan Railways for export of 175 passenger carriages with contract value USD 100 million and based on the seller’s credit provided by China EXIM Bank. In 2003, CMC signed the Award of Contract with Pakistan Railways for signaling engineering project with contract value USD 116 million and based on the seller’s credit provided by China EXIM Bank.

With years of development and accumulation, CMC has cultivated comprehensive abilities in marketing, project management and particularly project financing. CMC is in a favorable position to provide flexible and various project financing support, for example the seller’s/buyer’s credit, for the export project of railway products and overseas engineering project contracting. CMC would always sincerely cooperate with friends to build a glorious future in this regard.

Complete Equipment Engineering

This business section mainly includes export of complete equipment and technology project, which provides various complete equipment, patent technology, know-how and its matching equipments, and undertakes turn-key projects ranging from civil work, technical design, equipment installation, testing, and maintenance, technical training of operators, production to its routine management, and renders quality after-sale service.

Adhering to the principle of cooperation in good faith, CMC has built a close and favorable cooperative relationship with relevant domestic industry authorities and enterprises, and also maintained trading relationships with the industrial and commercial enterprises and governmental departments of different countries and regions on the basis of amiable cooperation, equality and mutual benefits. The corporation has exported nearly 400 sets of complete equipment to more than 20 countries and regions, involving more than ten types of products inclusive of textile, light industry, chemical, food, building material, grain processing, farming machinery, pharmacy and waterpower and firepower, and in particularly owned stronger competitive advantages in the field of textile, light industry and chemical. In 2001, CMC undertook the renovation project of Bengal KPM Paper Plant with a total contract amount of US$ 83 million.

Export Large Ships by Government Preferential Loans

To write down the successful project of 7 ships exported to Bangladesh by shipbuilding department by taking advantage of the government preferential loans. Since the official diplomatic relationship between China and Bangladesh was established in October of 1975, the relations of the two countries have developed rapidly. The Premier of Bangladesh had talks with former Chinese President and Premier while visiting China in 1995. Chinese leadership visited Bangladesh in 1997 and the two countries have developed frequent contact in all fields.

Under this background, the shipbuilding department of CMC decided that it is the right opportunity to explore Bangladesh

shipbuilding market after long-time research. With the support of Ministry of Commerce and the Chinese Embassy in

Bangladesh, CMC signed the contract of exporting 7 ships, which amounts RMB￥100 million, with BIWTC by taking

advantage of the government preferential loans in August of 1999. Shanghai Wusong shipbuilding company, Shangnan

shipbuilding company and Zhejiang Haidong Shipbuilding Company were responsible for construction. The construction of 7 ships started in 2000 and they were delivered in Dakar in April, 2002. And the project completed successfully in November of 2003. The 7 ships project is the latest exporting project CMC achieved in the past decades, which plays a very important role in improving the Bangladesh economy and people ‘s life on both sides of the border. Bangladesh Premier inspected on the board, which was reported by many newspaper. Bangladesh shows interest in importing ships from China in future because our quality and price is better than other countries. The project not only improved the existing longtime friendly relations between the two countries, but also laid good foundation for expanding the exports of machinery products from China to Bangladesh, particular to exports of ships. The ships in the project are mainly passenger ships and ferries with high added value and high technology, which is fully met the register standard of LLOYDS REGISTER OF SHIPPING. It is a breakthrough in the ship exports area and greatly improves the technology and product capacity of Chinese shipbuilding companies.

Our shipbuilding department summarizes the experience of implementing large foreign aid project based on the completion of the above project and realizes that it is promising and advantageous to expand the exports of Chinese machinery products, particular to ship exports, by taking advantage of the government loans. First of all, the government loans can relieve the capital shortage of the assisted country, which breaks the bottle neck of exporting ships to other developing countries as well as improves China’s reputation and influence in those countries whose economy is developing rapidly. If the load is guaranteed by their government, the risk of the repayment will be minimized. Secondly, China has developed into world third largest shipbuilding country after efforts of decades. Its technology and product quality have been greatly improved which not only meets the requirements of these developing countries but also provides them appealing prices. Thirdly, taking the government loan in exporting ships is able to lead China’s shipbuilding industry to develop with high added value, which has significant in the further development of our shipbuilding industry. Fourthly, these developing countries have always kept good relations with China and the expand of exporting machinery products by government preferential loans can improve the economic relations and lay good foundation for international good cooperation. Shipbuilding department of CMC started its ship exports business early in the 1970s. So far, almost a hundred of ships of all kinds have been exported, which not only created great amount of foreign exchanges but also pushed forward the development Chinese shipbuilding industry and other related industries. Our shipbuilding department maintains good cooperation relations with mainland shipbuilding companies, designing institute, classification society home and abroad and ship equipment suppliers. In the new time, shipbuilding department will sharpen our advantages and experience to explore and make progress in order to make contributions to China’s foreign aid work and ship exports business.