HOW DO DREDGING ENTERPRISES SURVIVE THE PANDEMIC?

Writer： admin Time：2020-07-03 09:49 Browse：

Covid-19 has become a catalyst for the transformation and development of China's dredging industry. Under the situation of normal epidemic prevention and control, facing the "Sequel" of epidemic situation, how can the small and medium-sized dredging enterprises take appropriate measures to recover their previous vigor and vitality?
The upstream and downstream industry chains have been hit Zhongchang Waterway business involves dredging of ports and navigation, reef blasting and clearing, offshore wind power installation, etc., and is an outstanding representative of private dredging enterprises in the industry. Affected by the epidemic, Zhongchang Waterway has suffered from the difficulties of project acceptance, project settlement and project payment delay, which also puts great pressure on the company in terms of personnel salary, social security payment and fuel payment. At the same time, the approval of the project to be started was delayed to different degrees, and the enterprise's cash flow balance was unbalanced, which greatly affected the normal operation of the company.
"What we undertake are all key offshore projects at home and abroad. The upfront investment is relatively large, the payment collection cycle is relatively long, and the manpower, material resources and financial resources invested are huge, so the capital turnover pressure is very big." Li Haijun, general manager of Jiangsu Juxin Steel Pipe Co., also expressed financial difficulties.
As the upstream enterprise of dredging industry, Jiangsu Juxin provides the most basic auxiliary equipment for dredging projects, such as steel pipe, steel pipe pile foundation and so on. Affected by the epidemic, some project funds could not be recovered in time, leading to their inability to timely purchase raw materials and the stagnation of some production plans, which not only affected the normal operation of the company, but also indirectly affected the project schedule of customers.
For Shenzhen Dada Island Group Co., LTD. (dada Island Group for short), the epidemic has greatly affected its normal operation and daily management. "The sudden attack of the epidemic has disrupted the normal shift leave plan for crew members, especially those from Hubei province, who cannot take their leave and return to work on time. Some managers are affected by the epidemic and cannot return to work in a timely manner, and the logistics support and service work of the construction vessels cannot respond in a timely manner." Big spade island group supervisor Li Deyuan said.
Dadao Island Group is a medium-sized private construction enterprise mainly engaged in dredging projects of ports and waterways. The company has nearly 300 employees. Due to the impact of the epidemic, some construction vessels could not resume construction in time, affecting the new contracted projects (such as the maintenance of fangchenggang waterway in Guangxi) on time.
The companies' difficulties epitomise the impact of the epidemic on the entire dredging industry. The reporter learned from The China Dredging Association that after the COVID-19 outbreak, the dredging industry was faced with such problems as limited personnel arrival, project delay, insufficient cash flow, and difficulty in raw material supply, as well as financial, legal and management difficulties.Covid-19 has become a catalyst for the transformation and development of China's dredging industry. Under the situation of normal epidemic prevention and control, facing the "Sequel" of epidemic situation, how can the small and medium-sized dredging enterprises take appropriate measures to recover their previous vigor and vitality?
The upstream and downstream industry chains have been hit
Zhongchang Waterway business involves dredging of ports and navigation, reef blasting and clearing, offshore wind power installation, etc., and is an outstanding representative of private dredging enterprises in the industry. Affected by the epidemic, Zhongchang Waterway has suffered from the difficulties of project acceptance, project settlement and project payment delay, which also puts great pressure on the company in terms of personnel salary, social security payment and fuel payment. At the same time, the approval of the project to be started was delayed to different degrees, and the enterprise's cash flow balance was unbalanced, which greatly affected the normal operation of the company.
"What we undertake are all key offshore projects at home and abroad. The upfront investment is relatively large, the payment collection cycle is relatively long, and the manpower, material resources and financial resources invested are huge, so the capital turnover pressure is very big." Li Haijun, general manager of Jiangsu Juxin Steel Pipe Co., also expressed financial difficulties.
As the upstream enterprise of dredging industry, Jiangsu Juxin provides the most basic auxiliary equipment for dredging projects, such as steel pipe, steel pipe pile foundation and so on. Affected by the epidemic, some project funds could not be recovered in time, leading to their inability to timely purchase raw materials and the stagnation of some production plans, which not only affected the normal operation of the company, but also indirectly affected the project schedule of customers.
For Shenzhen Dada Island Group Co., LTD. (dada Island Group for short), the epidemic has greatly affected its normal operation and daily management. "The sudden attack of the epidemic has disrupted the normal shift leave plan for crew members, especially those from Hubei province, who cannot take their leave and return to work on time. Some managers are affected by the epidemic and cannot return to work in a timely manner, and the logistics support and service work of the construction vessels cannot respond in a timely manner." Big spade island group supervisor Li Deyuan said.
Dadao Island Group is a medium-sized private construction enterprise mainly engaged in dredging projects of ports and waterways. The company has nearly 300 employees. Due to the impact of the epidemic, some construction vessels could not resume construction in time, affecting the new contracted projects (such as the maintenance of fangchenggang waterway in Guangxi) on time.
The companies' difficulties epitomise the impact of the epidemic on the entire dredging industry. The reporter learned from The China Dredging Association that after the COVID-19 outbreak, the dredging industry was faced with such problems as limited personnel arrival, project delay, insufficient cash flow, and difficulty in raw material supply, as well as financial, legal and management difficulties.