Parakou Shipping Hong Kong has grown from a shipmanagement agency and chartering business to a group that owns vessels and is involved in terminals and storage, as well as crew management and newbuilding services.
Shipping and family have been at the heart of Liu’s world from birth. “Ships have impressed me since the beginning of my life, because I was born onboard a ship — a small one carrying cargo on the Yangtze River,” Liu explains.
Liu was assigned to take charge of the technical department with responsibility for S&P of secondhand vessels and newbuildings at Ocean Tramping, because of his engineering background.
Liu explains: “At the beginning of the 1970s, the company expanded its fleet by heavily investing in oceangoing vessels. Mr Zhang provided me with many opportunities and plenty of freedom. Having spent 10 years working in Europe, I often had to fly to different cities and ports to inspect and/or take delivery of vessels.” By 1980, the company directors had spotted and complimented him on his work, and Zhang advised him to get involved in the commercial side of the shipping industry when China began reforming its economy. Liu replied: “I always follow your advice, Mr Zhang.” And Zhang was to continue to help him when he set up his own business.
Liu bought Parakou Shipping from a law firm in Hong Kong in 1985. “When I decided to set up my own company, I and my wife who has also worked for Cosco had only HK$2,000 in our pockets after collecting all our savings over the years. The rest of the capital was borrowed from my friends,” he recalls. Our core business kept changing in the early stages. We were once a manning agency, port agency, shipmanager and so on.
Liu explains: “Shipping is always a risky industry and the market fluctuates radically. ‘Better long-term charter out vessels to ensure a stable income stream, even in a bad market’, Mr Zhang always said. Mr Zhang's unique sense and experienced business view influenced me a lot. I adore and miss Mr Zhang"
Starting with small secondhand ships, Parakou bought about 20 vessels over the first five years of hard work — finally saving enough initial capital to order newbuildings.
Parakou Shipping have ordered more than 130 newbuildings since 1990. Together with the secondhand vessels, the number of ships we have purchased so far has reached 170 units. Most of them have been sold, and I have about 40 currently on hand.
Liu has dedicated his whole life to shipping, which is the root of his family.
Liu says “Diversification is certainly good for our company. Assuming that one or two businesses incur a loss while the others are profitable, the company hopefully makes a profit overall. To achieve this goal, I need to make much more effort, continuously."
In December 2001, CC Liu wrote to Premier Zhu Rongji and Vice-Premier Wu Bangguo, suggesting that China build Chinese ships in Chinese shipyards financed by Chinese banks, so that Chinese cargoes could be transported by Chinese vessels and be inspected by Chinese surveyors. “My opinion was highly appreciated and was adopted as the state policies for shipping development.”