Port development and trade in China

Are China’s developing ports mirroring the
country’s economic success? Imogen Brewster
This paper is going to explore the development of Chinese ports in conjunction with the
country’s economic success. I want to question if that the ports are developing in relation to the
economic success of China; or if something different is happening within the nation.
China with its ever growing population and increasing economy makes it appear that port
developments are following in the same fashion. However, while the new emerging ports of
China continue to attract funding to develop are they use being as successful as their
counterparts within the country?
I will be focusing in upon the port developments of Shanghai, Dalian, Tianjin and Dandong.
These contrasting and controversial port developments within China bring in to perspective the
actual result of the ports’ economic success within this great nation.
Introduction
China as a country is developing rapidly, so much so you would believe that port success is
mirroring this phenomenon. However recent publications imply that it is in fact stalling, the
“Chinese shipping industry experienced some down turn” (ICD, 2014) in recent years.
ICD (2014) China Shipping Prosperity Report, International Cooperation Department, pg. 2.
There are many reasons for this possible down turn, from seasonal employment to the new
transferring of goods. But national and foreign investment continues to be poured into the port
developments of China. What factors are involved that drive this? Is this the continuing cycle to
attract further investment and drive the economy? Or is it the differing regions of China
competing against each other to secure prosperity?
I want to continue to question if this down turn is evident in all ports throughout China or if they
are just focused solely on one or two of Chinese ports where investment in infrastructure or
surrounding industries has not been matched.
Shanghai port development
Shanghai port is one of the success examples within China. It is currently driving the country’s
aims for economic success especially thanks to the Pearl Delta (Merk et al, 2013, p. 11)where
Shanghai’s port growth is exceeding that of Singapore, Hong Kong and Shenzhen.
The above chart is showing us the rapid growth that Shanghai has experienced since 1998. There
are many possible reasons for this development but most of these lead to the ever increasing
container volumes within the Pearl Delta. We must always remember that this success in port
growth is always relative to the country – they are all interlinked. The maritime connectivity is
essential for the growth of a port especially that of Shanghai. The success is a result of the
connectivity throughout that nation; the competiveness is the driving force. Is this the reason
for the port developments and another way to attract investment?
Dalian
Dalian is known as the fastest expanding port in all of China. Dalian has many
imports and exports allowing it to become a rapidly developing industrial area. It
has connections to states and countries globally. It is now showing its
independence. Business scopes of the companies in Dalian include export of ships
such as bulk freighters, tugboats and barges, export of propellers, diesel engines,
deck machinery and components thereof, anchors and anchor chains, export of
various castings and machining parts such as iron castings, steel castings and
precision castings, export of all kinds of sluice valves and import of various marine
and non-marine products.
A combination of technology and trade is the business characteristic of the port.
With rich-experienced engineers and technicians and quality inspection staff, the
company is able to develop and design new products independently or together
with customers. It has built good business
relations with many domestic producers, foundries and machining factories of
marine products, meeting requirements of different customers. The port provides
and ensures product quality and timely delivery, showing reasons for its success
and reputation.
Theport of Dalian has built relations with customers from America, Canada,
Germany, England, Denmark, Switzerland, Finland, Poland, Japan, Australia, Korea,
Malaysia, Singapore, Saudi Arabia, etc. This is showing the rapid globalisation of
Chinese ports especially that of Dalian.
Tianjin
The port of Tianjin is a great example to explore in relation to port development. Tianjin as a
region also has much to offer from an eco-city to Italian concession era architecture (Lonely
Planet, 2014) The Treaty Port area has encouraged many tourists to Tianjin for many years, and
may be a contributory factor in encouraging further investment in port development.
From January 2012 to July 2013, the port of Tianjin has increased by over 10% and Dalian has a
growth rate of 22.6% (Shanghai Shipping Exchange, 2013). However, ports such as Shenzhen
has only a growth rate of 2%, while Shanghai has 3.4%. What are the reasons for these
differences?
Are the areas officials noticing the benefits of tourism so they must make their port attractive?
Or have they simply found a new way to drive economic investment and success in Tianjin
opposed to other regions’ ports within the nation?
Dandong
The port of Dandong is an interesting example of port development. Dandong has many aspects
of export and importation of goods this is a result of container and cargo transportation,
passenger traffic and foreign ship maintenance (The Port of Dandong, 2014).
Dandong’s development has been upped in recent months we are able to identify that there are
lifeboat services being applied, art competitions and new communications and relationships
with different regions, states and countries.
We must question whether the strategy being used to promote the development of the port
mirrors that of other ports or have they found a winning formula where they are now beginning
to see success.
The reasons for port developments in China
We know that in the past few decades port development have been booming in China,
especially in the south east of the country (Holland in city.org, 2014). These could be a result of
foreign investment; where China’s eastern coast region is seen as a gateway to China and is a
hub of the transportation of containers within.
There have been billions of pounds invested into the ports and their development plans within
China. This investment has major influence over what is exported and imported each year
through these ports and can be a significant driver in China’s economy.
How can we use Chinese port development within the British educational system?
Chinese port development can be easily incorporated into aspects of the British educational
system. We can use this within the GCSE and A level geography scheme of work. This
development is so unique to China and is a current and topical issue where it is seen that China
will soon be the biggest economy and therefore will have a major influence on the world’s
economies. We can use Chinese port development in many areas of the curriculum especially in
that of:
1. Process and change in urban society
2. Socio-economic development
3. Cultural and political contexts
4. Global economic development issues
5. Application of geography
I believe that Chinese port development will enhance our knowledge of the change that is
happening within China. It is now China’s time and therefore it is time for us to explore and
investigate this by incorporating port development into the curriculum?
To read at your leisure
http://liaoning.chinadaily.com.cn/dandong/
http://www.lonelyplanet.com/china/tianjin/sights/historic/treaty-port-area
http://english.dandongport.com/#
http://www.dlport.cn/english/gsjj_gsgk.html
http://www.marinetraffic.com/ais/details/ships/9456410/vessel:PORT_DALIAN
http://www.bbc.co.uk/news/magazine-25452941
http://www.porttechnology.org/news/china_planning_7.1_billion_expansion_of_dandong_port
#.U8PmI8tOW1s
Imogen Brewster, July 2014