Finnish firm eyes opportunity from Biden’s decision to replace Chinese port cranes
Eyeing an opportunity from a geopolitical tussle between the world’s two superpowers, Finland’s Konecranes is making a big pitch to sell its products in the US.
Sam Chambers July 31, 2024
In February this year, president Joe Biden signed an executive order setting in place a plan to replace the nation’s Chinese-built port cranes over concerns they could be fitted with spy devices.
Biden has earmarked $20bn over the next five years to get Chinese cranes replaced.
The world’s largest port crane manufacturer, Shanghai Zhenhua Heavy Industries (ZPMC), has repeatedly denied claims from US politicians that its equipment poses a cybersecurity threat. Nevertheless, the Biden administration is determined to push forward with its crane replacement programme.
Konecranes has announced it is establishing a network of partners to build a full range of port cranes in the US, joining Japan’s Mitsui in building cranes on American soil.
The network developed by Konecranes is comprised of US steel structure providers and subcontractors to satisfy domestic manufacturing criteria including ‘Build America Buy America’.
Konecranes is now able to manufacture a full range of domestic manufacturing-compliant port cranes in the US including ship-to-shore cranes
Analysts at Alphaliner, a container shipping consultancy, believe that the US government’s initial aim to replace all Chinese-made cranes in the country’s ports by newbuilt cranes within a fairly short period appears unrealistic.
“Potentially, the new legislation could be watered down after the presidential elections, so that Chinese-made equipment must be replaced at the end of its economic lifetime, which could be around 2040 for some of the recently-installed cranes,” Alphaliner suggested in its latest weekly report.
The potential for a US-China trade war and further isolationism following this November’s presidential elections in the US is dissected in detail in the latest issue of Splash Extra published today.