Europe Container Terminal BV, Rotterdam
TOP SECTOR ports
Opportunities for Dutch companies
China
TOP SECTOR ports
Opportunities for Dutch companies
1
TOP SECTOR ports
Opportunities for Dutch companies
China
ports
Opportunities for Dutch companies
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TOP SECTOR ports
Opportunities for Dutch companies
2013
Focal point:
Consulate-General Shanghai
[email protected]
Other participating offices:
Embassy of the Kingdom of the Netherlands
Consulate-General Guangzhou
Netherlands Business Support Office Dalian
Netherlands Business Support Office Qingdao
www.zakendoeninchina.org
This report was written by: Niels van der Graaf (Master student Chinese Economy and Business) & Bas Overtoom (Chief Representative) of the Netherlands Business Support Office Dalian, in collaboration with Jason Jiang (Correspondent at Asia
Shipping Media). And special thanks goes out to Mingyue Lian (Port of Rotterdam)
for supporting in the writing process.
This series of opportunity reports is a joined effort of the Netherlands Economic
Network in China, consisting of the Embassy of the Netherlands in Beijing, the
Consulates-General in Shanghai, Guangzhou and Hong Kong, and the Netherlands Business Support Offices (NBSO’s) in Chengdu, Dalian, Jinan, Nanjing,
Qingdao and Wuhan.
Unauthorized use, disclosure or copying without permission of the publisher is
strictly prohibited. The information contained herein, including any expression
of opinion, analysis, charting or tables, and statistics has been obtained from or
is based upon sources believed to be reliable but is not guaranteed as to accuracy
or completeness.
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Contents
1. INTRODUCTION
China’s export-led growth strategy
Expansion of port capacity
Main activities of Chinese ports
Logistical network in China
China in 2030
2. CHINA’S EXISTING PORT SECTOR
Three main port regions
1. The Port of Shanghai
2. The Port of Guangzhou
3. The Port of Tianjin
3. TRENDS & UPCOMING PORTS
Green port development
Smart ports
Upcoming ports
1. The Port of Dalian
2. The Port of Lianyungang
3. The Port of Xiamen
5
5
6
7
10
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4. CONCLUSION
28
5. SOURCES
30
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14
15
17
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21
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22
22
23
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The ports of China are the gateways through which the majority of
trade and business with China is conducted by the outside world.
China is a dominant player in worldwide sea-trade, as most of the
world’s biggest and busiest ports are found in this country. This
report provides an introduction to the current and future developments of ports in China. Including a description of some of its
leading and upcoming ports. A basic understanding of the Chinese
port landscape enables international trade and logistics firms to
better identify potential business opportunities in this and other
related sectors.
1.
INTRODUCTION
China’s export-led growth strategy
China’s coastal ports have undergone swift development in the last decade. The growth of its ports has been closely connected to China’s economic development model, which for the last three decades has primarily emphasized export-led growth. The exports and imports of goods and
services accounted for respectively 31% and 27% of Mainland China’s Gross
Domestic Product (GDP) in 2011. Compared to other major economies (see
table 2), this figure is relatively large. The total trade of goods and services
(as a percentage of GDP) at about 59% in 2011, was almost twice the figure
as found in countries such as the United States, Japan and Brazil. Compared to these same countries, China is also the only country with a relatively high net trade value in goods, with a total surplus of 242 billion USD
in 2011, while the United States for example had a deficit of 735 billion
USD in the same year. This indicates that China still is a predominantly
exporting and manufacturing focused nation, which is also resembled in
the structure of its port sector.
China still is a predominantly exporting and manufacturing focused
nation, which is also resembled in the structure of its port sector
China’s leading role as the manufacturer of the world and the development
of a domestic consumption market, has led to a considerable growth of its
total port container traffic, as is commonly measured in TEU’s (Twenty-foot
Equivalent Units, a standard container size). Over the last decade China’s
total container traffic grew on average with 12.4%, while in comparison
the container throughput of all OECD countries combined had an average
growth of only 5.9% over the same period (see figure 1). In the year 2010,
Shanghai for the first time took the lead as the world’s largest port (i.e. in
terms of container throughput). In 2012, a grand total of six Chinese ports
had a position in the top 10 global ports.
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Figure 1: Growth in total container traffic
In year-on-year growth percentage of total TEU.
China
OECD
Linear (China)
30
25
20
15
10
5
0
-5
-10
-15
2001 2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Source: World Bank 2013
Expansion of port capacity
In order to facilitate the vast growth of container and cargo traffic in
Chinese ports in recent years, a substantial expansion of the total port
capacity available was required. Port capacity is commonly expressed in
the total number of docking berths (i.e. the designated location where
a vessel can be moored) available. In 2011, Chinese ports had a combined total of 31.968 berths, of which 5,532 are found in the coast ports
and 26,436 can be found in the inland ports. Usually most attention is
given to deep-water berths (i.e. capacity of 10,000 tons and more), as
these often have a more significant impact on the overall port sector
than the relatively smaller berths.
the total number of deep-water berths is intended to increase to a
total of 2,214 in 2015.
In 2010, the total number of deep-water berths was 1,774, which according to the Chinese government’s 12th Five-Year Plan is intended
to increase to a total of 2,214 in 2015.
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Table 1: The World Busiest Ports
1
Shanghai, China
31.73 million TEU
2
Singapore
29.94 million TEU
3
Hong Kong
24.38 million TEU
4
Shenzhen, China
22.57 million TEU
5
Busan, South Korea
16.17 million TEU
6
Ningbo-Zhoushan, China
14.72 million TEU
7
Guangzhou, China
14.26 million TEU
8
Qingdao, China
13.02 million TEU
9
Dubai, UAE
13.01 million TEU
10
Rotterdam, the Netherlands
11.88 million TEU
Source: World Shipping Council 2013
2012 ranking, based on container traffic TEU in 2011
Main activities of Chinese ports
The most prevalent activity of ports in China includes the transportation of containers, coal iron ore, grain, crude oil, liquid chemicals and
petroleum products. Additional key activities are roll-on-roll-off operations (i.e. transportation of wheeled cargo such as cars and trucks), and
providing deep-water access out to the sea. The specific port activities
of a country also largely depend on the type of merchandise goods that
are imported and exported. Therefore, we have provided an overview of
the merchandise trade (both import and export) in China (see table 3).
And, to put these figures into perspective, a comparison is made with five
other countries, namely: the Netherlands, United States, Japan, Brazil and
India. China’s total merchandise trade value as a percentage of GDP far
exceeds most of the other countries except for the Netherlands and India. Not surprisingly, the composition of China’s merchandise exports is
dominated by manufactures (93%), which is considerably higher than the
other countries except for Japan (with 89% of its merchandise exports allocated to manufactures).
Not surprisingly, the composition of China’s merchandise exports is
dominated by manufactures (93%)
At the same time, China’s imports are more balanced and similar to the
other countries in this comparison, and consist mostly of manufactures
(57%), fuel (17%), ores and metals (15%).
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Table 2: Imports and Exports
The growth of a country’s port sector is inherently related to the total trade
values. In order to put the Chinese figures into perspective, a comparison is
made with five other countries.
China
NL
USA
Japan
Brazil
India
Trade of goods and services
(as a percentage of GDP in 2011)
59%
157%
32%
31%
25%
54%
Total merchandise trade value
(as a percentage of GDP in 2011)
50%
151%
25%
29%
20%
41%
Export of goods and services
(as a percentage of GDP in 2011)
31%
83%
14%
15%
12%
24%
Import of goods and services
(as a percentage of GDP in 2011)
27%
74%
18%
16%
13%
30%
Value of net trade in goods
(as a difference between exports and
imports, in billion USD in 2011)
242
64
-735
-4
29
-116
Source: World Bank 2013
Main function of ports
Ports fulfill both important transport and non-transport functions within a logistical
network.
Transport functions:
• Hinterland function
A port enables traffic flows between the hinterland area and the outside world.
• Hub function
A port enables traffic flows from and to hub ports and inland ports.
• Seaport function
A port enables traffic flows from and to other major ports around the world.
Non-transport functions:
• Services to ships
Each port is able to offer berths, docks, navigation channels and the ccasional repairs.
• Services to merchandises
A port can provide merchandises with cranes, warehouses and access to inland distribution
systems.
• Industrial activities
Some ports have reserved a designated area for industrial activity within the proximity of
the port.
A comprehensive port usually provides all of these primary port functions. However, most
ports also have their own specialization and are particularly strong in certain functions.
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Table 3: Merchandise trade
As merchandise trade only includes the trade in goods, and not services,
capital transfers and foreign investments, it is an ideal indicator to compare
the patterns of trade across countries that is most strongly related to the
development of a nation’s port sector.
Imports
Type of goods
(a % of total merchandise trade)
Exports
Type of goods
(a % of total merchandise trade)
Imports $1743
Exports $1898
1. Manufactures
(57%)
2. Fuel (17%)
3. Ores and metals
(15%)
4. Food (5%)
5. Agriculture (4%)
1. Manufactures
(93%)
2. Food (3%)
3. Fuel (2%)
4. Ores and metals
(1%)
5. Agriculture (1%)
The Netherlands 151%
Imports $599
Exports $661
1. Manufactures
(62%)
2. Fuel (20%)
3. Food (12%)
4. Ores and metals
(3%)
5. Agriculture (2%)
1. Manufactures
(64%)
2. Food (16%)
3. Fuel (13%)
4. Ores and metals
(3%)
5. Agriculture (3%)
USA
25%
Imports $2266
Exports $1480
1. Manufactures
(68%)
2. Fuel (21%)
3. Food (5%)
4. Ores and metals
(3%)
5. Agriculture (1%)
1. Manufactures
(63%)
2. Food (10%)
3. Fuel (10%)
4. Ores and metals
(4%)
5. Agriculture (3%)
Japan
29%
Imports $855
Exports $823
1. Manufactures
(47%)
2. Fuel (32%)
3. Food (9%)
4. Ores and metals
(8%)
5. Agriculture (2%)
1. Manufactures
(89%)
2. Fuel (2%)
3. Ores and Metals
(3%)
4. Agriculture 1%)
5. Food (1%)
Brazil
20%
Imports $237
Exports $256
1. Manufactures
(72%)
2. Fuel (19%)
3. Food (5%)
4. Ores and metals
(3%)
5. Agriculture (1%)
1. Manufactures
(89%)
2. Ores and Metals
(19%)
3. Food (31%)
4. Fuel (11%)
5. Agriculture (4%)
India
41%
Imports $463
Exports $305
1. Manufactures
(47%)
2. Fuel (38%)
3. Ores and Metals
(6%)
4. Food (4%)
5. Agriculture (2%)
1. Manufactures
(62%)
2. Fuel (19%)
3. Food (9%)
4. Ores and metals
(4%)
5. Agriculture (2%)
Total merchan- Total merchandise trade value dise trade value
(as % of GDP)
(in billion USD)
China
50%
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Logistical network in China
The Chinese port sector is an important element of the entire logistical
network that includes transport, storage and distribution activities over
land, air and water. Due to China’s accelerated economic growth of the
past decades, enormous pressure has been put on its existing logistical
network. And, there is no indication that the pace of growth in terms of
trade volumes is slowing down. As in 2012, China’s total logistics volume
had grown by 10% (compared to the previous year), to a value of about
177 trillion RMB. Therefore, the efficient distribution of goods remains a
crucial element for China in its attempt to sustain its current economic
growth levels.
The efficient distribution of goods remains a crucial element for
China in its attempt to sustain its current economic growth levels
However, the major challenge China is facing is that currently its total
logistics costs account for almost 18% of its GDP, while this figure averages around 10% in most OECD countries. Additionally, compared to more
developed countries (e.g. United States, Japan), China’s logistics sector
scores relatively low on some relevant quality indicators (see table 4).
Nevertheless, China’s logistics sector scores on average a lot better than
other developing countries (e.g. Brazil, India). The fact that China’s infrastructure still lags behind the more developed countries, has also been
recognized by the Chinese government, who has committed itself to invest 250 billion USD by the year 2035 to improve the country’s infrastructure level. Additionally, the increasing demand on the air and seaports, also requires (re-)development of new and existing facilities. The
issuance of the Plan on Restructuring and Developing the Logistics Industry in 2009 definitely indicates the intention by the Chinese leadership
to address the concerns associated with China’s logistical network in the
near future.
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Table 4: Logistics Performance Index
The logistics performance index evaluates the quality of a country’s logistical network on six core dimensions. In this table we have three of the most
relevant indicators and the score for the overall quality. The logistics performance index evaluates the quality of a country’s logistical network on
six core dimensions. In this table we have three of the most relevant indicators and the score for the overall quality.
Overall quality
Overall score of logistical performance
(1=low to 5=high in 2012)
Infrastructure quality
Quality of trade and transport-related infrastructure
(1=low to 5=high in 2012)
Efficiency of customs
The measured efficiency of the entire customs clearance process (1=low to 5=high in 2012)
Logistics services
Quality and competence of logistics services
(1=low to 5=high in 2012)
China
NL
USA
Japan
Brazil
India
3.52
4.02
3.93
3.93
3.13
3.08
3.61
4.51
4.14
4.11
3.07
2.87
3.25
3.85
3.67
3.72
2.51
2.77
3.47
4.05
3.96
3.97
3.12
3.14
Source: World Bank 2013
China in 2030
The future development of China’s ports is inherently dependent upon
the advancement of its economic growth and the accompanying increase
in international trade. Consulting firm Lloyd’s Register has made a forecast for China in the year 2030, and predicts that China’s demand for oil
will have been tripled, surpassing the United States as the largest oil consumer in the world. At the same time, the oil sea-trade from the Middle
East to China will grow with about 4.5 times compared to the 2010 levels
(from 124 million to 571 million tons).
China’s demand for oil will have been tripled, surpassing the United
States as the largest oil consumer in the world
In addition, there will be rapid growth in China’s total natural gas consumption. In 2030, China will consume more than half (60%) of the world’s
coal demand. And, while its total steel consumption will partially decline,
China will still be the number one importer of this commodity. China’s
share in the world’s total container ships will have risen from 18.3% to approximately 20.5% to 27.2%, and its total shipbuilding output will double.
Nonetheless, Lloyd’s Register expects China to become the primary marketplace for maritime trade in 2030.
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CHINA’S EXISTING PORT SECTOR
In the introduction we have outlined China’s dominant role in the global
port landscape. In addition, China has a considerably high net trade surplus
in goods, and its combined total container traffic grew more than double the
global average. For the coming years China still remains a predominantly
exporting and manufacturing focused nation, although the country’s economic growth strategy is changing to focus more and more on domestic
demand. The enormous pressure that has been put on China’s logistical network due to its vast economic growth now leaves China with the task of
expanding and updating its overall logistical capacity and improving the
quality levels of infrastructure and logistical services. The continuous developments and growth of the countries’ seaports will be of key importance
to achieve this. Firstly, this means improving and expanding its main seaport as we will discuss in this section of the report, as well as adding more
key ‘hubs’ (upcoming ports) in the network and integrating ‘sustainability’
and ‘high efficiency and intelligence’ into its seaports, as we will outline in
the next section. China’s port landscape consists of 172 major individual
sea and in-land ports, with a combined total of 32 thousand berths. Compared to other countries (see table 5), China’s port landscape is characterized by a relatively long duration of export and import procedures, but at
comparatively lower costs.
China’s port landscape consists of 172 major individual sea and inland ports, with a combined total of 32 thousand berths
At the same time, China’s total container throughput (TEU) ranks amongst
the highest in the world, with a total of 140 million in 2011.
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Tabel 5: The port landscape
In order to put the port sector developments in China into perspective,
it is often useful to compare the related indicators with a selection of
other countries.
China
NL
USA
Japan
Brazil
India
172
24
532
292
81
76
140
12
43
19
9
10
21
6
6
10
13
16
24
6
5
11
17
20
580
895
1090
880
2215
1120
615
975
1315
970
2275
1200
Number of major ports
(total in 2012)
Container port traffic
(in million TEU in 2011)
Time to export
Length of entire procedure, without delay
(measured in days in 2012)
Time to import
Length of entire procedure, without delay
(measured in days in 2012)
Cost to export
All fees associated with procedure, excl. trade tariffs
and taxes (in USD per container (TEU) in 2012)
Cost to import
All fees associated with procedure, excl. trade tariffs
and taxes (in USD per container (TEU) in 2012)
Source: World Port Source 2013, World Bank 2013
Table 6: China’s busiest ports
1
Shanghai
31.73 million TEU
2
Shenzhen
22.94 million TEU
3
Ningbo-Zhoushan
16.83 million TEU
4
Guangzhou
14.74 million TEU
5
Qingdao
14.50 million TEU
6
Tianjin
12.30 million TEU
7
Dalian
8.06 million TEU
8
Xiamen
7.20 million TEU
9
Liangyungang
5.02 million TEU
10
Yingkou
4.85 million TEU
Source: Chineseport.cn 2013
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Three main port regions
There are three core economic coastal areas in China, where the largest
and busiest ports are located.
1. Yangtze River Delta Shanghai & Ningbo-Zhaoshan
2. Pearl River Delta Hong Kong, Guangzhou & Shenzhen
3. Yellow River & Bohai Sea Tianjin, Qingdao & Dalian
The three biggest ports (in terms of container throughput) in each one
of these regions are the ports of Shanghai, Guangzhou and Tianjin.
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1. The Port of Shanghai
The port of Shanghai is recognized as the world’s busiest and largest commercial port. Owing a large part of its success to its favorable geographical
location, as the Shanghai port lies almost exactly in the middle of China’s
18.000-kilometer long coast at the mouth of the Yangtze River.
Shanghai port lies almost exactly in the middle of China’s 18.000-kilometer long coast at the mouth of the Yangtze River
After China was defeated in the first Opium War, the Shanghai port was
forced to open-up to the outside world, as was in accordance with the Treaty
of Nanjing (1842). Foreign trade skyrocketed for almost a century, and in
the early 20th century the Shanghai port was known as the sea-trade centre
of the Far East. Only until the People’s Republic was declared in 1949, and
China went into a period of almost full isolation, cutting itself off from almost all foreign relations including overseas trade. China’s economic reform
and opening-up to the outside world in 1978 also marked the beginning of
the Shanghai port to regain its dominance in global sea-trade. In contemporary China, almost three decades later, the trade commenced through
the Shanghai port contributed to almost a quarter of China’s entire foreign
trade figure, and annual revenues add up to about 28.7 billion RMB (2012).
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Over 2,000 freightliners leave the port each month, traveling to all major
ports in the world. Shanghai was also the first port in the world to exceed 30
million TEU container throughputs in 2011. As the biggest container port
in the world, Shanghai is focused on optimizing and expanding its terminal
and container operations.
As the biggest container port in the world, Shanghai is focused on
optimizing and expanding its terminal and container operations
The Shanghai port is divided into eight distinct port districts, with a total
of 1160 berths (of which about 130 deep-water berths), it covers a shoreline of about 119.2 kilometers. The hinterland of the Shanghai port covers
one of the most dynamic economic regions found in China. Both its direct
and indirect hinterland includes areas such as the Yangtze River Delta and
coastal regions of eastern China, but also the increasingly developed middle
and upper reaches of the Yangtze River in the west of China. Therefore,
Shanghai’s future growth highly depends on its economically developing
hinterland in the more inland provinces alongside the Yangtze River.
Key developments in the port of Shanghai
Expected to reach completion in 2015, the Yangshan Deep-Water Port is a
new port area just south of Shanghai. It is mainly built to enable the Shanghai port to grow despite of its shallow waters. Berths with depths of up to
15 meters are constructed, which have the ability to receive the world’s
largest container vessels. The area is connected to the mainland via the 32.5
km Donghai Bridge, currently the longest sea bridge in the world. The port
will have 30 berths capable of handling 15 million TEUs a year. The Shanghai Nanhui area is another port extension project that is nearing completion. It is aimed at expanding Shanghai’s handling capacity of cargo (i.e.
break-bulk), and also includes the establishment of an improved multimodal transport network linking Shanghai with the provinces of Zhejiang and
Jiangsu. The future 30 years of the Shanghai port are currently planned out
by the port and city authorities. After the completion of the Yangshan area,
the focus will be shifted to the area of Hengshaqiantan, which is to the east
of the city centre. The planners believe that its construction could almost
double the capacity of Shanghai port.
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2. The Port of Guangzhou
The Port of Guangzhou is currently the largest most comprehensive port
in the south of China, located approximately 125 kilometers northwest of
Hong Kong at the mouth of the Pearl River. The port mainly serves the Pearl
River Delta region, and Guangdong province, but its indirect hinterland also
spreads out to surrounding provinces such as Yunnan, Hunan, Hubei and
Guangxi. In 1999, the Port of Guangzhou broke its annual throughput record of 100 million tons, to be the second port in Mainland China with such
an achievement. What followed was a period of great year-by-year growth
and development. Guangzhou, formerly known as Canton, has been an important port for China as far back as the Qin Dynasty (221 - 206 B.C.). From
1368 to 1912, Canton fulfilled a primary role as China’s busiest and leading
port, through which a majority of international trade was conducted.
From 1368 to 1912, Canton fulfilled a primary role as China’s busiest and leading port, through which a majority of international trade
was conducted
In more recent years, Guangzhou remains one of China’s biggest ports, especially in terms of cargo throughput. Guangzhou Port has trade relations
with over 300 ports in over 80 countries. In terms of port capacity, the port
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ranks high with a total of about 510 berths, of which 65 fall in the category
of deep-water berths. The latter seems relatively low, but recent developments and dredging works for the deep-water Nansha terminal aims to extend the availability of deep-water berths in Guangzhou Port. The province
of Guangdong consumes almost 90 million tons of coal every year to meet
its energy needs. Almost 70% of this coal enters the province through the
Guangzhou Port. In order to meet this stark demand, the Guangzhou Port
had to upgrade its capacity substantially to allow the inflow of coal to increase from 27.4 million to 56.5 million tons in recent years. In addition
to its 30 specialized coal handling berths, Guangzhou Port is also equipped
with specialized capacity that enable the frequent inflow of container shipments (65 berths), petroleum and chemicals (88 berths), ore (2 berths) and
grain (21 berths).
Key developments in the port of Guangzhou
The Guangzhou Nansha New Area currently is the key area of focus for
several large logistical investments. Among these investments, is the
start of phase three of Nansha area development project, which includes
four additional 100,000 tons class, two 70,000 tons class container berths,
and twenty-four 2,000 tons class container barge berths. At this moment,
the Nansha area accounts for nearly 60% of the Guangzhou Port capacity, which will increase significantly when all projects reach completion.
The project is expected to be completed by January 2015 with a total of
around 7.5 billion RMB in investment. Furthermore, the local Chinese
government has planned to invest an additional 25 billion RMB to advance the development of the Guangzhou Port in the next five years.
The Guangzhou Port also aims to strengthen its logistics hub function by
adding 120 additional shipping routes, of which 70 connect Guangzhou
with other international ports.
Guangzhou Port aims to strengthen its logistics hub function by adding 120 additional shipping routes, of which 70 connect Guangzhou
with other international ports
In order to improve its financial capability, the Guangzhou Port Group is
currently also planning an IPO.
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3. The Port of Tianjin
The Port of Tianjin is the largest port in the Northeast region of China, and
is located at the mouth of the Haihe River where it flows into the Bohai Sea.
The port serves as the most important sea-trade gateway to Beijing with
annual revenues accounting to about 21.5 billion RMB (2011). In terms of
surface size, Tianjin is often recognized as being one of the largest artificial
ports in the world. Additionally, it has an extensive international connection, as Tianjin sustains trade relations with more than 500 ports in 180
countries across the globe. As of 2011, the Port of Tianjin housed about 217
berths, performing both production (a large majority) and service functions. Of these, about 90 can be classified as deep-water berths, some of
which capable to accommodate ships ranging from 150.000 to 300.000 tons.
Serving about 52% of China’s total surface area, Tianjin has quite a vast hinterland, in which it has established 21 dry ports connected by an extensive
road and rail network.
Serving about 52% of China’s total surface area, Tianjin has a vast
hinterland
Tianjin is specialized largely in container throughput, but the port is also
equipped with specialized terminals able to handle large amounts of iron
ore, coal, petrochemicals, and bulk grain and bulk fertilizer.
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Key developments in the Tianjin Port
Currently, the major development in the Tianjin Port is the investments
in the Tianjin Dongjiang Bonded Port Area, considered to be the largest
bonded port area in China. A bonded port area generally fulfills five primary functions, namely international transfer, global distribution, international procurement, international trade transit and export processing.
The Dongjiang Bonded Port aims to develop itself especially in four areas,
namely: import-export processing, modern logistics, the manufacturing industry and various service industries. The Dongjiang Port Area has been
taken in operation in 2007 and since then more than 1,000 firms (with a
combined registered capital of 68.6 billion RMB) have established in this
area that is only 10 square kilometers in size. These firms are active in a
wide variety of business sectors, from logistics, shipping, and trade to the financial industry, and are especially attracted by favorable tax and currency
exchange schemes in this area.
From the examples above it is easy to understand that China currently has
a very dynamic port sector. Through major investments in development
projects, China’s major ports are constantly trying to renew themselves and
sustain their global leadership positions. But, there is more to the Chinese
port landscape than just the well-established ports. In the next chapter we
will therefore take a closer look at China’s upcoming ports and some major
port sector trends.
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TRENDS & UPCOMING PORTS
The Chinese port sector is continuously adapting itself to the demands set
by China’s vast economic growth and the changing nature of both imported
and exported goods. In addition to the mere expansion of port capacity that
enables Chinese harbors to cope with this growth, one can distinguish two
other trends that will predominantly characterize the Chinese port landscape in the years to come.
Green port development
Sustainable or ‘green’ development is a phenomenon quickly finding more
and more ground in China, as there are numerous examples of eco or sustainable cities currently being developed around the country (e.g. Shenzhen, Tianjin). These types of cities primarily aim to eliminate all forms of
carbon waste, rely entirely on renewable energy sources, and incorporate
the environment within the cities’ architectural design. This trend is also
starting to trickle down to China’s port sector, with the realization of the
so-called ‘eco-ports’, that have strong connections between environmental
management and effective port management.
‘green’ development is starting to trickle down to China’s port sector, with the realization of the so-called ‘eco-ports’
Recently, the Ministry of Transport has announced that it will make the
Qingdao Port a pilot project in further developing the concept of a low carbon green port. The local government has committed a total investment of
2.2 billion RMB to realize this green port, involving 27 distinct projects in
areas of infrastructure, energy-saving technologies, terminal handling system upgrade, smart port technology and environmental protection.
A similar approach is adopted in the Pearl River Delta area, where Hong
Kong aims to introduce mandatory emission controls on the traffic of shipping vessels in the area. Mainly in an attempt of improving the air quality
in the area, caused by both roadside and ocean shipping. Support for implementing these kinds of measures has also been received by the local government of Guangzhou. The expected realization of an Emission Control
Area (ECA) would be the very first of its kind in China.
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Smart ports
An upcoming trend that can be observed in the global port landscape is the
importance of developing ‘smart ports’. Especially after the recent global
economic crisis, competition among ports has been considerably intensified, creating a situation where the cost effectiveness and performance improvements are of key importance to the ports’ survival. Ports have to be
flexible enough to cope with these volatile economic cycles, and adjust their
respective capacities accordingly.
Ports have to be flexible enough to cope with volatile economic
cycles, and adjust their respective capacities accordingly
At the same time, the further integration of the global supply chain has
increased the difficulty of managing port operations, as it requires ports to
collaborate with a variety of different entities, such as shipping and logistical firms, shippers, and other (rival) ports. This highly dynamic environment requires port authorities and terminal operators to be more adaptable
to the changing needs of its customers, and this can partially be achieved by
the implementation of advanced and integrated technology systems. The
aim of establishing a smart port is to integrate all the different systems, and
introducing technology that improves real-time visibility and cargo security. Thereby achieving optimized port operations and improved efficiency
of the entire logistical supply chain. The Chinese ports authorities are closely following these global developments and China is doing its own research
to come up with innovative solutions for port management and efficiency.
Upcoming ports
From all upcoming ports we have identified in China (see table 7) we will
elaborate more extensively on three of them, namely: Dalian, Lianyungang and Xiamen.
Table 7:
We have identified some of the upcoming ports in China, of course there are
many more, but these are especially the ones to watch in the near future.
Tangshan
Hebei Province
Yingkou
Liaoning Province
Yantai
Shandong Province
Qinhuangdao
Hebei Province
Huanghua
Hebei Province
Qinzhou
Guangxi Province
Dalian
Liaoning Province
Lianyungang
Jiangsu Province
Xiamen
Fujian Province
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Opportunities for Dutch companies
1. The Port of Dalian
The history of Dalian Port can be traced back to 1899 when it was first
established. It has been under the rule of the former Russian Empire,
Japan and later the former Soviet Union until 1951. In the past decade,
it has been experiencing rapid development and has become one of the
fastest growing ports in China, serving as a major gateway to the northeast of China.
Dalian Port In the past decade has been experiencing rapid development and has become one of the fastest growing ports in China
The Port of Dalian ranked seventh in both container throughput and total cargo throughput among Chinese ports in 2012. It also is the leading
port in terms of container volume growth, with a year-on-year growth
of 25.9%. Currently, Dalian Port operates one of the largest crude oil terminals in China, with annual handling capacity of 80 million tons, and
it is also the most important distribution centre for oil products and liq-
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Opportunities for Dutch companies
uid chemicals in northeast China. There is a world-class petrochemical
industrial park now under construction on Changxing Island, north of
Dalian. Additionally, Dalian is also the largest container port in northeast China. Dalian Ports’ international container throughput accounts
for nearly 97% of all throughputs in the region. In recent years, the automotive terminal of Dalian Port has been experiencing fast development
alongside the development of its automotive industry. It currently has
an annual handling capacity of 500,000 vehicles, and also has a 99.5%
market share in northeast China (2012). For the future, the port has set
its sight on serving the entire Northeast Asia region. Recently, the Port
of Dalian has signed an agreement with Anji Automotive Logistics to
develop an automotive logistics terminal on the north side of Dayaowan
Port Area, which is expected to become a logistics hub for the entire vehicle and vehicle parts industry in northeast Asia.
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2. The Port of Lianyungang
Lianyungang has been one of the first fourteen Chinese cities permitted
to welcome foreign trade and investment, by the Chinese State Council
in 1984. Currently, it is a rising centre of industry, foreign trade and
tourism in the eastern part of China. Lianyungang is an important transportation hub in Jiangsu and it is also dubbed as the bridgehead of the
New Asian-European Continent Corridor.
Lianyungang is an important transportation hub in Jiangsu and it
is also dubbed as the bridgehead of the New Asian-European Continent Corridor
The Longhai Railway has its starting point in Lianyungang, and stretches
out westwards to Urumqi, the capital of Xinjiang Uyghur Autonomous
Region, and further to Russia and Europe, connecting two continents
along the way, both Asia and Europe. Lianyungang Port is mainly seatrade oriented, providing an excellent access to transport goods and bulk
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Opportunities for Dutch companies
materials between the hinterland and overseas. It has an excellent location for transit point, which offers the shortest distance in connection
with the east and west coasts of Pacific Ocean. The national and provincial governments have recognized the port as a prestigious international seaport linking Pacific countries, including Japan and South Korea.
In 2012, Lianyungang Port had a total cargo throughput of 185 million
tons, and a year-on-year growth of 11%. In the same year, the container
throughput reached 5.02 million TEUs, and a year-on-year growth of 3%.
Lianyungang Port is an emerging port for iron ore imports in China,
and in 2012 it handled about 38.4 million tons of imported iron ore. As
China’s demand for iron ore has been considerably increasing in recent
years, Lianyungang Port has been constantly developing its bulk cargo
infrastructure. It has built two dedicated iron ore terminals and a new
deep-water navigation channel, which is capable of receiving 300,000
tons deep water bulk carriers. In January 2013, Lianyungang Port announced that it would commit 1.1 billion RMB to invest in a new bulk
terminal and berths.
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Opportunities for Dutch companies
3. The Port of Xiamen
Xiamen Port is an important deep-water port located on the southern coastline of Fujian Province. Xiamen Port handled 7.2 million TEUs in 2012, making it the 19th biggest container port in the world. Currently Xiamen is
developing a major shipping project, the Xiamen Southeast International
Shipping Center, which is the fourth international shipping center approved by the state council after Shanghai, Tianjin and Dalian. The 5.5 billion RMB project will occupy nearly 10.5 hectares of land and help develop
Xiamen Port into an important gateway in the southeast part of China.
COSCO and China Communications Construction Company Limited (CCCC)
have reached an agreement to transform Xiamen Yuanhai Container Terminal into China’s first fully automated terminal, which will be equipped
with advanced technology, and its annual container throughput capability is expected to reach between 780,000 - 910,000 million TEU upon its
completion. The project is part of Xiamen’s efforts to turn the port city
into southeast China’s premier container hub. In addition, Xiamen is also a
major cruise homeport in China; the port handled 40 cruise voyages in 2012
with a total passenger throughput of 37,000 people. Currently the port has
also invested 33.3 billion RMB to develop a new international cruise terminal, which is capable of handling the world’s largest cruises.
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4.
Opportunities for Dutch companies
CONCLUSION
As the second biggest economy in the world, it may come as no surprise
that China plays an important role in the global port landscape. At this moment, China dominates the world’s biggest ports ranking with six ports.
In addition, relative to the countries we have compared to (i.e. the Netherlands, United States, Japan, Brazil and India), China has a considerably high
net trade surplus in goods, and its combined total container traffic grew a
lot faster in the past decade. China still remains a predominantly exporting
and manufacturing focused nation (although China is looking for ways to
change its economic growth strategy to focus more on its own domestic
market) and this economic growth strategy is resembled in the structure
of its port sector. By initiating major development projects China’s large
ports are consistently scaling-up their handling capacity to prepare for the
further growth in trade volumes in the coming decades.
the ‘smart port’ and ‘eco-port’ trends are relatively new to China, meaning
that projects in this field will have a need for foreign expertise
Additionally, through the implementation of new technologies and further
integration of communication networks these ports are enhancing their
overall handling efficiency. Besides the current major ports, we have also
taken a closer look at the upcoming ports in China. For these upcoming
ports, we can observe double-digit year-on-year growth figures for both
container and cargo throughput in the past five years. This growth is mainly caused by the rapid economic development of the hinterland of these
ports, due to shift of more economic activity to these areas. Considerable
improvements of the logistical infrastructure and services in these areas
further enhance the attractiveness of these ports. As in most other industries in China the vast growth is coupled with an enormous pressure on the
environment. In order to cope with these negative consequences and limit
further environmental degradation caused by the port sector, the development of eco-ports aims to create a strong connection between environmental management and effective port management.
For international trade and logistics firms there are business opportunities
to be found in China’s dynamic port sector. The numerous port expansion
projects scattered around China, potentially offer some viable business opportunities. At the same time, both the ‘smart port’ and ‘eco-port’ trends
are relatively new to China, meaning that projects in this field will have a
need for foreign expertise.
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Opportunities for Dutch companies
We have also seen that due to the enormous pressure that has been put on its
logistical network, China is now left with the challenging task of expanding
its logistical capacity and improving the quality levels of infrastructure and
logistical services. The involvement of foreign firms that have sufficient
experience in enhancing logistical efficiency can help China in realizing its
aim to improve the cost-effectiveness and the quality of its port sector infrastructure and logistic network in the future to sustain an important and
strong position in international trade.
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5
Opportunities for Dutch companies
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TOP SECTOR ports
Opportunities for Dutch companies
HEILONGJIANG
Harbin
Changchun
Urumqi
JILIN
XINJIANG
Shenyang
LIAONING
Hohhot
INNER MONGOLIA
GANSU
BEIJING
Taiyuan
NINGXIA
Xining
QINGHAI
SHAANXI
Shijiazhuang
Qingdao
Jinan
HEBEI
SHANXI
Yinchuan
Lanzhou
Dalian
Tianjin
SHANDONG
Zhengzhou
Xi’an
HENAN
HUBEI
Chengdu
SICHUAN
ANHUI
Wuhan
Hangzhou
CHONGQING
Chongqing
GUIZHOU
Nanjing
Nanjing
Hefei
Shanghai
TIBET
Lasha
JIANGSU
Changsha
Nanchang
JIANGXI
HUNAN
Guiyang
ZHEJIANG
Fuzhou
FUJIAN
YUNNAN
Kunming
GUANGDONG
GUANXI
Nanning
Guangzhou
Hong Kong
Hongkong
HAINAN
Netherlands Economic Network in China
Provincial Capital
Province Name
Provincial Border
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TOP SECTOR ports
Opportunities for Dutch companies
荷兰政府在中国的商务机构联系方式
NETHERLANDS ECONOMIC NETWORK IN CHINA
荷兰王国驻华使馆
中华人民共和国
北京市朝阳区亮马河南路4号
电子邮件: [email protected]
Embassy of the Kingdom of the Netherlands
4 Liangmahe Nanlu
Chaoyang District, Beijing 100600
Tel: + 86 10 8532 0200
E-mail: [email protected]
上海总领事馆
中华人民共和国
上海市长宁区红宝石路500号东银中心B塔10楼
电子邮件: [email protected]
Consulate-General Shanghai
10/F Tower B, Dawning Center, 500 Hongbaoshi Road
Changning District, Shanghai 201103
Tel: + 86 21 2208 7288
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广州总领事馆
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广州市天河路208号粤海天河城大厦34楼
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Consulate-General Guangzhou
Teem Tower, 34/F, 208 Tianhe Road
Guangzhou 510620
Tel: + 86 20 3813 2200
E-mail: [email protected]
香港总领事馆
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Room 2402B, 24/F, Great Eagle Centre, 23 Harbour Road
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Tel: + 852 2599 9200
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NBSO Qingdao
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荷兰政府在中国的商务机构联系方式
Netherlands Economic Network in China:
www.hollandinchina.org
www.zakendoeninchina.org
www.laihelanzuoshengyi.org
32