US

CHEC registers record revenues

By SONG PING AND ZHANG ZHAO CHINA DAILY
Updated: 2010-03-09 00:00

Beijing — Despite an industry downturn worldwide, port building contractor China Harbour Engineering Co Ltd (CHEC) had record revenues of $1.89 billion last year and signed new contracts worth $4.49 billion. 

As growth slowed due to the global economic crisis, CHEC responded by reorganizing its resources and moving into new sectors.

Shrinking infrastructure markets in the Middle East and Africa, which before contributed more than 60 percent of its revenues, resulted in CHEC developing business in Hong Kong and Macao special administrative regions (SARs), Southeast Asia and South Asia, which together comprised 59 percent of its new contracts.

CHEC also expanded into Latin America, where its contracted volume grew from nearly zero in 2008 to $540 million last year, some 12 percent of new business.

The company has adopted a “greater construction” strategy to embrace projects including airports, railways, power plants, water facilities and offshore structures.

While marine engineering still totaled 47 percent of its new contracts in 2009, more than 50 percent came in a range of sectors, helping spread risk and providing new growth points.

CHEC focuses on cooperation with governments, financial institutions and business councils. Half of its new contracts last year were government-to-government programs. Ten were mega-projects that surpassed the $100 million mark.

Phase I of the Gwadar deep water port in Pakistan built in part by CHEC, was awarded the Luban Prize — China’s top accolade for architecture and construction — last November. Its projects in Saudi Arabia, Hong Kong SAR and Angola received awards for safety from governments and project owners.

CHEC had 106 projects under construction by the end of last year.