Achieving success in the Asian marine market

Allan-QingZhou Wang, Head of ABB Turbocharging in China
The challenges and opportunities in business segments including marine, railway traction and power generation. Allan-QingZhou Wang, Head of ABB Turbocharging in China, reveals how you can be successful in China.

The challenges and opportunities in business segments including marine, railway traction and power generation. Allan-QingZhou Wang, Head of ABB Turbocharging in China, reveals how you can be successful in China.

charge!: Generally speaking, what is ABB’s position in China’s competitive and growing market?
Allan-QingZhou Wang: Our market position is the result of a long-term investment strategy. It was not in place over night. Our customers appreciate the commitment and dedication that we have delivered for years. Of course, nobody is sleeping. What we have to do is clearly demonstrate our capability to offer benefits, day-by-day and solution-by-solution.

Let’s talk about solutions for marine applications. What are the market needs in Asia and ABB’s responses?
The pressures in the shipping industry to lower operating costs and to minimize environmental impact remain high. In both areas ABB is helping – well aware that turbocharging plays a key role in increasing the efficiency while reducing ships’ emissions. Our tunings on two-stroke engines, for example, are a success. They allow end users to cope with different operational needs, and provide optimum engine performance at a lower cost.

Please tell us more about the Chinese requirements regarding environmental protection.
The government of China is strongly pushing developments for environmental protection. In 2016, the Ministry of Transport introduced the Domestic Emission Control Areas (DECA) – Pearl River Delta, Yangtze River Delta and the Bohai Rim. The Ministry of Environmental Protection released “Limits and measurement methods for exhaust pollutants from marine engines (China Stage I, Stage II)” for China’s inland water and coastal transport in the same year. As mentioned before, ABB Turbocharging offers technical solutions that address environmental protection, enabling compliance with international IMO and local regulations. The ABB CR series of turbochargers is customized for China’s inland water transport market and enables the fulfillment of emissions legislation.

« Reliability means: You resolve a problem when it occurs, quickly, and everywhere in the world. »

Share with us your outlook on the rail market in China.

China’s railway represents a highly demanding application. Technical solutions need to cover a wide range of operation at many different altitudes and temperatures. We are happy that our TPR range is the right solution to all the railways’ demands. We clearly see its potential for the future. The China Railway Corporation (CRC) plans the renewal and the renovation of the existing diesel locomotive fleet, a population of around 8,000.

What opportunities do you see for ABB’s turbocharging technologies for power plants?
Here too, we see great potential for ABB’s approved solutions, for example in combined cooling, heating and power (CCHP) applications. Along with the growing living standard across China goes the need for improved infrastructure. Take airports or other large public buildings: besides a power supply they also need cooling and heating. The government has confirmed the importance of CCHP powered by gas engines. Furthermore, we see potential for ABB’s solutions outside of China due to the One Belt, One Road initiative.

What impact do you expect this initiative to have on ABB Turbocharging?
One Belt, One Road implies a long-term and unparalleled building of infrastructure. It takes in transportation on land and sea, like highways, railways or ports. The most challenging part is the supply of electrical power. ABB is currently realizing a power plant in Eritrea along this Road. A great deal in this initiative is energy-related. This is where ABB Turbocharging is definitely very active.

Staying with actuality: The number of Chinese cruise passengers is increasing rapidly. Do you see business opportunities here?
China committed itself to satisfying the growing domestic demand by building up a local cruise shipbuilding industry. To push forward the local content, we see cooperation activities initiated by the leading shipping conglomerates, namely CSSC, together with foreign partners. ABB has an excellent, long-established global market position in cruise ship applications. Again, thanks to the high efficiency and reliability of our products, and thanks to an excellent service network.

Among the long-term service relationships is the one with China COSCO Shipping. What is the secret of this success?
A good long-term cooperation works when the benefits are mutual. We have proved that we are reliable partners, thanks to our strong local and long-term presence, and thanks to our global network. Reliability means: You resolve a problem when it occurs, quickly, and everywhere in the world. That is essential in our commitment to our business partners and is highly valued.

Let’s talk about production. Today, ABB Jiangjin Turbo Systems Co., Ltd. is an important production base for low-speed ABB turbochargers. What is the strategy?
China has – and that’s the beauty of this market – the whole value chain through a ship’s life-cycle, from shipbuilding and shipping to ship repair. Being close to the entire market, we can serve customers extremely well. And China is a leading player in ship repairs. That explains why ABB Turbocharging has a strong service footprint along the coast in China, in addition to local production. This also applies to diesel locomotives. Therefore, we also produce the TPR series turbochargers in Chongqing, and provide customers with life-cycle care all over the country.

« Being close to the entire marine market, we can serve customers extremely well. »

Many years ago, ABB turbochargers were entirely made in Switzerland. Do customers ever ask for turbochargers “made in Switzerland”?
We are one ABB. If it says ABB on the outside, it is genuine ABB on the inside. We take quality concerns that may arise very seriously and invite customers to visit our factory in Chongqing. Convincing customers is actually not simply selling but showing them the reality.

ABB Turbocharging is present at this year’s Marintec in Shanghai. Why is it a must to visit the booth?
There are many highlights. I invite visitors to see how we showcase our latest digitalization products and solutions. It’s not only technologically highly fascinating; it is also most interesting to see how digital customer solutions will create new benefits.

image credits: ABB Turbocharging in China