BEIJING, Jan 16 (Reuters) - The number of shipping accident deaths in China fell by a fifth last year, but the country still lacks the right equipment to save even more lives, a senior Chinese transport official said on Tuesday.

The drop in deaths to 376 people was achieved despite China being buffeted by six typhoons in 2006, Vice-Minister of Communications Xu Zuyuan told a news conference.

"It could be said that last year was the best for safety on the water since the start of the new century," he said.

But he later tempered that comment with more downbeat remarks.

"China is a developing country, and a developing seafaring nation. Over the past few years, investment in sea rescue safety has risen a fair bit, so our abilities have improved a lot," said Xu, who is also in charge of maritime rescue operations.

"But certainly there exist some shortcomings," he added.

That included too many outdated ships, an inability to operate effectively in stormy seas and a lack of equipment to fight oil slicks, Zu said.

"As our rescue equipment is limited, at the moment what we are concentrating on is strengthening accident prevention work," he added.

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