CHEC to step up efforts across the region

China Harbor Engineering Co is planning to deploy more manpower and other resources in the Asia-Pacific region, as part of the engineering contractor's global efforts to win more orders in what it sees as a "lucrative growth market."

Even though the shift is still in the early stages, it could have meaningful economic implication for the trading bloc as it coincides with the renewed push from other international companies and commodity producers.

Mo Wenhe, chairman of CHEC, said China has accelerated the efforts to boost regional connectivity within the APEC region to further improve regional economic integration, as well as in promoting the 21st Century Maritime Silk Road and the Asian Infrastructure Investment Bank.

"Since all the APEC members have long coastlines and many ports, the 21st Century Maritime Silk Road will help link growth centers such as Hong Kong, Singapore and Los Angeles, as well as develop new regional hubs including Jakarta, Perth in Australia and Busan in South Korea," said Mo.

A subsidiary of China Communications Construction Co Ltd, CHEC started to expand to Southeast Asia in the early 1990s. With more than 10,000 employees, the company now has more than 60 overseas branch offices or subsidiaries serving clients in over 80 countries.

"Most of the countries in the Association of Southeast Asian Nations rely on commodity, energy and agricultural products trade. However, the shortage of good infrastructure facilities such as roads, bulk terminals, container ship ports and crude oil docks, has affected government revenues and people's living standards within the region," Mo said.

China has maintained its position as ASEAN's largest trading partner, with trade volume of about $443.6 billion in 2013, up 11 percent year-on-year.

Mo said improving infrastructure facilities such as ports, roads and regional and international airports would help the APEC nations boost exports, people's incomes, social welfare and employment rate.

Unlike other Chinese construction companies, which only focus on engineering, procurement and construction projects, CHEC has gradually transferred its pillar business from EPC into new business models such as build-operate-transfer, and public-private-partnership for both public and private sectors.

The Chinese company won a $2.39 billion deal in the Asia-Pacific region in 2013, accounting for 34 percent of its international business.

Backed by flexible business service packages and localization strategies, the company completed the main section of the second Penang Bridge in Malaysia, the principal part of 300,000-ton crude oil terminal and channel dredging project of Sino-Myanmar Crude Oil Pipeline Project, as well as the pile-sinking construction work of the Lae Port Project in Papua New Guinea.

CHEC also won contracts worth $2.3 billion in the Asia-Pacific region during the first three quarters of the year, accounting for 34 percent of its global business, including big-ticket projects - the (Phase I) Hong Kong Port infrastructure construction project of the Hong Kong-Zhuhai-Macau Bridge and the EPC projects of DBK-MRC Coal Mining and Transportation Corridor Infrastructure project in Indonesia.

Diao Chunhe, president of China International Contractors Association, which helps Chinese companies facilitate new business in overseas markets, said Chinese companies are attractive to governments and business partners in the APEC region, because unlike their competitors in Australia, South Korea and Qatar, they come with their own funding model.

"Chinese companies are capable of coordinating finance for projects through Chinese institutions such as the Export-Import Bank of China or China Development Bank. They have built several infrastructure projects in emerging markets like Indonesia, Malaysia and Thailand," said Diao.

"They also do not generally seek sovereign guarantees when working with local partners."

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