Safety Assessment of CSBC Shipyard in Kaohsiung, Taiwan

Introduction and Site Overview

A workplace safety walkthrough of CSBC Corporation, Taiwan's Kaohsiung shipyard was conducted on Monday, January 14, 2008. The assessment team included seven students from a local university and twenty students from Kaohsiung Medical University, accompanied by three faculty members from Kaohsiung Medical University. The weather was overcast with temperatures in the mid-70s Fahrenheit.

An introduction to the shipyard began at 9:00 a.m. and lasted approximately 45 minutes. A Public Relations representative presented a video documenting the facility's history and manufacturing processes, along with an informational brochure about the company. The shipyard tour took place from 10:00 a.m. to 11:30 a.m., led by Mr. Tseng Ching Chin and Mr. Chi-Chen Hong. The team toured the interior of a newly completed commercial cargo vessel for Wan Hai Lines, including the control room, generators, upper deck, and captain's chambers. The walkthrough concluded with a question-and-answer session at the Department of Industrial Safety and Environment Protection at approximately 12:00 p.m.

History of CSBC Corporation

CSBC Corporation, Taiwan is a state-owned company headquartered in Kaohsiung with shipyards located in Keelung (northern Taiwan) and Kaohsiung (southern Taiwan). The Keelung shipyard was founded in 1919 as the Keelung Dock Company. In 1937, Mitsubishi Heavy Metals Corporation invested in and founded Taiwan Dock Company.

In 1946, the company underwent significant restructuring. Taiwan Dockyard Company merged with Taiwan Steel Works and Tong Kuang Company in Kaohsiung, became government-owned, and was renamed the Taiwan Machinery Manufacturing & Shipbuilding Corporation. Two years later, in 1948, the company separated into two distinct government-owned entities: Taiwan Machinery Corporation and Taiwan Shipbuilding Corporation (TSBC), each with separate management and operations.

Development of the Kaohsiung facility accelerated during the 1970s. In 1972, a committee was formed to plan construction of the Kaohsiung shipyard. Approximately one year later, the China Shipbuilding Corporation (CSBC) was established and reverted to government ownership in 1977. The Kaohsiung shipyard was completed in 1976, making it one of the newest shipyards in the world at that time. In 1978, TSBC and CSBC merged to form the China Shipbuilding Corporation, operating two shipyards with headquarters in Taipei.

Most recently, in April 2007, the company changed its name to CSBC Corporation, Taiwan. The company planned to transition to private ownership by the end of 2008, which would allow it to hire foreign workers and engage subcontractors more freely—changes intended to support growth as one of the world's largest shipbuilders.

Major Products and Manufacturing Processes

CSBC Corporation, Taiwan provides comprehensive services including designing and manufacturing commercial and naval ships, ship repair, machinery manufacturing, and diversified industrial operations. The commercial vessels produced include container ships, tankers, bulk carriers, and specialized ships such as semi-submersible heavy lift deck cargo carriers and reefer ships. Naval ship construction includes Guide Missile Patrol Frigates (PFG II), patrol craft, fast attack boats, and transport ships.

Beyond shipbuilding, CSBC has manufactured components for various industries. Notable projects include fabrication and installation of continuous ship unloaders; reinforced concrete containment vessel lines and reactor pressure vessel pedestals for Taiwan Power Company's fourth nuclear power plant; natural gas receiving stations for Chinese Petroleum Corporation; container cranes; and 250-meter smoke stacks for Hsing-Ta Power Plant. At the time of the walkthrough, CSBC held orders for four ships to be completed over the following five years, projected to generate approximately NT$120 billion in profit.

The shipbuilding process at CSBC encompasses eleven critical manufacturing steps: contract signing, design, lofting, steel cutting, plate bending, primary assembly, block assembly, launching, painting and outfitting, delivery, and after-service support. During the site visit, the Wan Hai Lines cargo vessel was in the painting and outfitting stage. This phase includes final preparations such as painting, sanding, cleaning, and installation of all specified ship amenities and systems.

Company Workforce and Operations

The Kaohsiung shipyard employs a total of 5,300 workers. Approximately 2,300 are directly employed by CSBC Corporation, while roughly 3,000 are subcontractors. The average age of CSBC employees is 47 years, compared to 40 years for subcontractors. Women represent a very small percentage of the workforce: approximately 30 women work directly for CSBC, while about 300 women are employed as subcontractors. Female subcontractors typically perform painting, gardening, and grinding tasks.

Taiwan's Labor Safety and Health Law, Article 21, stipulates types of work that women cannot perform, creating significant restrictions on their employment opportunities. At the time of the walkthrough, no foreign workers were employed due to the company's government ownership status. This practice was expected to change upon privatization, as private operations would not face regulations limiting employment to local labor.

All standard work is conducted during a single shift from 8:00 a.m. to 5:00 p.m., with employees allowed no more than three hours of overtime. Workers receive two 15-minute breaks for tea time (10:00–10:15 a.m. and 3:00–3:15 p.m.) and one hour for lunch. Only personnel assigned to power supply, fire departments, and subcontracted safety guards work night shifts. This operational model was anticipated to change with privatization to support increased production capacity.