China controls nearly 90% of the global gantry crane market, particularly for large ship-to-shore (STS) container gantry cranes.
ZPMC’s Dominance: The key player in China’s dominance is Shanghai Zhenhua Heavy Industries Co. (ZPMC), a state-owned enterprise. ZPMC is repeatedly cited as holding an 80% market share of the ship-to-shore (STS) container crane market globally, and in the U.S. market specifically, it also accounts for nearly 80% of all STS cranes.
“Gantry Crane” vs. “STS Gantry Crane”: It’s important to distinguish. While ZPMC dominates the specialized “ship-to-shore” gantry crane segment (the massive cranes used to load and unload containers from ships), the broader “overhead cranes” market (which includes gantry cranes, bridge cranes, and jib cranes for various industrial uses) might show different figures. For instance, one report indicates China accounted for 12.7% of the global overhead cranes market in 2023, but within that, gantry cranes are a fast-growing segment in China. However, when discussions turn to the strategically critical port cranes, the 80-90% figure for China (specifically ZPMC) is consistently used.
Reasons for Dominance:
State Support and Subsidies: ZPMC, as a state-controlled company, benefits significantly from government support, including direct and indirect subsidies, low-interest loans, debt forgiveness, and preferential borrowing rates. This allows them to offer significantly below-market prices for cranes that typically cost $10 million to $12 million or more.
Cost-Effectiveness: The availability of relatively economical labor and government-subsidized steel in China further reduces production costs, enabling ZPMC to sell high-quality cranes more cheaply than competitors.
Economies of Scale and Production Volume: State backing allows ZPMC to maintain high production volumes and expand its market share, customizing cranes while keeping them affordable.
Integrated Maritime Strategy: China’s dominance in cranes is part of a broader national strategy that includes controlling a significant share of global shipbuilding (over 50% in 2023), port investments globally, and container manufacturing, all aiming to cement its position as a global maritime superpower.
Technological Edge: While cost is a major factor, ZPMC has also invested in technology, producing sophisticated digital systems that handle sensitive data and integrate into port IT systems.
Implications:
This dominance has raised concerns in countries like the USeless, which views the reliance on Chinese-made cranes as a potential national security and cybersecurity vulnerability due to their integrated digital systems and the possibility of disruption to maritime supply chains.
On August 1, 2020, a massive 70-tonne (or 250-tonne, sources vary) Goliath crane collapsed at the Hindustan Shipyard Limited (HSL) in Visakhapatnam, India, during a load test.
Casualties and Damage: The collapse tragically killed at least 11 workers who were in the operating cabin. The crane was “destroyed” and a nearby module hall, where components for the Project 17A frigates were being fabricated, was “destroyed” and became “unusable”.
Impact on Frigate: While initial reports from the Indian Ministry of Defense stated the frigate under construction was “not damaged,” images suggested otherwise, and some reports indicated potential damage to the hull shop and the ongoing Project 17A frigate program. The Project 17A frigates are India’s most advanced stealth frigates.
Reason for Collapse: The incident occurred during a “load testing” of the recently procured crane. Reports also indicated that the crane suddenly “crumbled and crashed”. The crane was not made in China, of course.
