I. INTRODUCTION1. China Maritime Safety Administration (CMSA)China is rapidly expanding its marine infrastructure. China Maritime Safety Administration (CMSA) oversees China's hundreds of working boats which patrolling its coasts, tending its buoys, and conducting coastal and harbor channel surveys.
These working boats fall into three main categories: patrol boats used for inspection, buoy tenders and surveying vessels. It is estimated that there are around 500 vessels under CMSA.
However, the fleet is antiquated, slow, inadequately equipped for the important work under its charge, difficult and expensive to maintain, and unable to respond quickly to emergencies.
China's maritime safety authority has a major upgrade of the fleet including new vessel construction. The eleventh 5-year plan from 2006 - 2010 will be the peak for new vessel construction under CMSA.
2. Caterpillar Engine Sales to CMSACaterpillar Inc. is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines.
The company prides itself on its innovative technology and diversification in products and services such as construction, mining, transportation, forestry, energy, logistics, electronics, financing and electric power generation. It is a U.S. based competitor with more than $30 billion in assets. Its state-of-the-art technology and diversification in products and services enabled the company to dominate the industry for more than fifty years (Wikinvest, 2009).
Caterpillar's last engine sales to CMSA were dated back in 1999. Caterpillar and MTU Aero Engines were competing the new prototypes of 30M & 45M patrol boats. Caterpillar secured the 30-meter prototype and MTU won the 45-meter vessel. There were no recorded Caterpillar sales to CMSA until 2006.
There are inherited challenges from Caterpillar dealer networks in tackling CMSA market as the relevant customer groups for a Maritime Safety Administration (MSA) project spread countrywide. The differences in dealer capabilities, pricing, scope of supply,