China’s Total Water Borne Freight
China has a total of 235 ports including both coastal and inland ports. Shipping in China is under the control of the ministry of Communications. At present the Beijing government is keen to stop foreign ownership of port facilities in China. This is mainly a measure to stem the growth in power of Hong Kong-based Hutchison Whampoa (Hutchison Port Holdings) and Wharf which are both heavy investors in southern Chinese ports around Guangdong province. This will further eradicate Hong Kong’s position, which is further exacerbated by the fact that Hong Kong’s port fees are far higher than those at ports in Guangdong province and also nearly double those of fees at American west coast ports.
Since the completion of a large number of major port upgrades, particularly in Shanghai and the ports in Guangdong province, China has begun to see significant growth in its total volume of freight. This is also added to by growing experts and the winning of business away from Hong Kong.
China’s Major Ports
Leading Ports
In terms of China’s ports the largest is Hong Kong, though Hong Kong remains a privately operated port and somewhat more established and developed that any Chinese port. However, Hong Kong remains significantly larger than any Mainland Chinese port. Shanghai has remerged in the last few years as a major world port despite problems with poor dredging in the Huang Pu River. However, with the addition of significant new facilities to service Pudong, the port is growing annually. Other major ports in China remain the traditionally large ports. Qingdao has long been a major port for access to Korea and other countries, while Tianjin is also a traditional port for the north of China and Beijing. Dalian is also a traditional port (formerly known as Port Arthur) and a major access route to Japan. Southern China is becoming increasingly important particularly the Guangdong province ports including Guangzhou and others.
Hong Kong and Singapore are the largest ports in the world by container throughput. Both developed as entrepots through their geographic location, Hong Kong obviously due to its proximity to China. Hong Kong sits at the mouth of the Pearl River Delta, while Singapore is located at the strategic position on the Straits of Malacca, the route for the majority of sea-borne Europe-Asia trade. Now both ports are threatened by competition, Hong Kong from southern China and Singapore from new ports in Malaysia. However, there is a major difference between the two ports. Singapore tends to accept water borne cargo and acts as a transshipment centre whereas Hong Kong is very much a local cargo port with goods for shipment arriving by road from within Hong Kong and throughout China.
Shanghai is a major port again following major improvements to the port and the addition of new facilities in Pudong.
Leading Port Profiles: Basuo Port
Basuo is a small sized port on Hainan Island serving Dongfang, Changjiang, Baisha and Danxian counties. Locally based shipping lines also serve the coastal ports of Zhunjiang, Beihei, Shanghai, Tianjin, Dalian and outwards to other locations in Asia. The port is linked to the round-the-island highway network, and has
direct access to Haihou and Sanya via the west highway network. Railways are linked to the port for passenger and cargo transport from Basuo to Shilu (54 km), Hanagliu (63 km), Lingtou (50 km) and Sanya (164 km).
The port is expanding with the construction of bulk and general cargo berths of 10,000 tons class at the west of the Harbour basin. Basuo is a centre for the export of iron ore, iron, steel, cement and timber. Imports arriving through Basuo include coal, coke and grain.
Leading Port Profiles: Beihai Port
Beihai is a significant commercial port located in the Guangxi Zhuang Autonomous Region. It is a major trade gateway for Guangxi. The port has substantial bagging facilities with an annual capacity of 200,000 tons. Due to Beibu Bay’s Wei 6-1-1 oil field petroleum has become a major cargo. The port has links to four major highways to the hinterland and into Guangdong province. The port is constructing six 10,000-ton class berths.
Major export cargoes include rice, manganese ore, cassavas, fireworks, aquatic products, fruit, aniseed, cassia bark, starch and jute. Major import cargoes include fertilizer and timber.
Leading Port Profiles: Chiwan Container Port
Chiwan is a small sized port in Shenzhen, Guangdong province, southern China serving the local Nanhai Oil Field with a capacity of 39,000 TEUs (twenty-foot equivalent units). Further container terminal development has been planned. Bagging and warehousing facilities are available and the port acts as a sub-distribution centre for container businesses in Hong Kong.
The port links to the Guangzhou-Shenzhen railway and the wider Chinese national rail network. Water traffic also has direct access to the port on the Zhujiang in the Pearl River Delta. Chiwan is also in close proximity to Hong Kong (20 nautical miles), Guangzhou (70 nautical miles) and Shanghai (842 nautical miles).
The adjacent Kaifeng Container Terminal has been developed with an additional two berths for third and fourth generation container ship. There are two Container Terminal operators: Shenzhen Chiwan Harbour Container Company (a subsidiary of China Nanshan Development) and Shenzhen Kaifeng Container Terminal Company (a Sino-foreign joint venture). Hidoney Developments, established two months ago, holds a 24% equity interest in Shenzhen Kaifeng Terminal Company, which was transferred to Wharf Holdings Modern Terminal Limited (MTL) when Wharf acquired a controlling interest in Hidoney in early 2000 and renamed it as Shenzhen Chiwan Wharf Holdings. Hidoney owned two berths at Chiwan.
Leading Port Profiles: Jiulongpo Harbour International Container Dock
Chongqing Jiulongpo Harbour International Container Dock is the first international container dock in the upper reaches of the Yangtze River and opened in December 2000. The Dock is linked to the international cargo containers from the Chengdu-Conhgqing, Xiangyang-Chongqing, and Chongqing-Guiyang railway lines. Chongqing Harbour is set to be the key hub in the upper reaches of the Yangtze River and is expected to ultimately handle 90% of Chongqing’s container trade.
Construction of the Dock was started in 1998 and it occupies 480 meters of waterfront and a total area of 73,000 square meters and represents an investment of RMB 220 million (US$ 26.6 million). The Dock currently has a handling capacity of 50,000 standard containers per annum with 60 sets of handling equipment.
Leading Port Profiles: Dalian Port
Dalian is historically a crossroads for water and rail transport and is the largest commercial port in northeast China. Foreign investment in local manufacturing has created a growing demand for containerised cargo handling facilities. The Harbin-Dalian Railway connects to the main rail lines from the port, as does the Harbin-Dalian Highway with a direct link to Shenyang, the capital of Liaoning Province. Port construction has been significant with 80-90 berths under ongoing construction and introduction in Dayao Bay.
Dialian Shipyard and Dalian New Shipyard provide ship repair and dry-docking facilities. Major exported products from Dalian include crude oil, grains and timber while import cargoes include mineral ores, wheat, chemical fertilisers and machinery. There is also a significant passenger service industry from Dalian. In 1999 Dalian processed exports worth US$3.54 billion through its port, a growth of 10.5% over 1998.
Leading Port Profiles: Fangcheng Port
Fangcheng is the largest coastal port in the Guangxi Zhuang Autonomous Region servicing provinces in southwestern China. It is involved in bulk trade and containers on a feeder basis. The Nanning-Fangcheng highway connects the port with the Chinese national highway network and the rail network. A 200,000 ton class petroleum berth with two 50,000 ton class wharves for handling petroleum products have been constructed. However, Fangcheng continues to largely handles grain,2.7 Leading Port Profiles: Kaifeng Port
Kaifeng Port is near Shenzhen in Guangdong province and adjacent to Chiwan Container Port. Kaifeng handles container handling, warehousing, trucking and towage. As a sister port to Chiwan, Kaifeng is also operated by Shenzhen Chiwan Wharf Holdings. The Port has been increasingly profitable with half yearly turnover of approximately RMB 39.5 million (US$ 4.8 million), with a six monthly growth rate of approximately 58%. Container throughput at Kaifeng port has grown to approximately 207,228 teu due largely to two new transpacific roués now operating. In 2001 new routes to the US are beginning operation, which are expected to boost key cargoes including grains, timber, steel and petroleum.
Leading Port Profiles: Kaifeng Port
Kaifeng Port is near Shenzhen in Guangdong province and adjacent to Chiwan Container Port. Kaifeng handles container handling, warehousing, trucking and towage. As a sister port to Chiwan, Kaifeng is also operated by Shenzhen Chiwan Wharf Holdings. The Port has been increasingly profitable with half yearly turnover of approximately RMB 39.5 million (US$ 4.8 million), with a six monthly growth rate of approximately 58%. Container throughput at Kaifeng port has grown to approximately 207,228 teu due largely to two new transpacific roués now operating. In 2001 new routes to the US are beginning operation, which are expected to boost key cargoes including grains, timber, steel and petroleum.
Leading Port Profiles: Mawei Port
Mawei is a river estuary port 25-km from the mouth of the Minjiang River. The main harbour is located at Mawei 8 km from Suzhou. The port also has general and container liner services to Japan and Hong Kong as well as tramp trading to Asian ports, North America, Australia, and Europe. The port has a 7,500 ton class passenger ship terminal.
The port is connected to the national rail system via the Fuzhou- Laizhou railway and there are direct trains from Fuzhou to Beijing, Guangzhou and Xiamen. Regular passenger ships travel to Shanghai. The port has two floating cranes with a maximum capacity of 25 tons. Additionally, on-site is the Mawei Shipyard. The port’s major export cargoes are stones, cement, grains, sugar, aquatic products, canned foods, lead, coal and sand. Major imported cargoes are fertilisers, timber, building materials, and sugar.
Leading Port Profiles: Guangzhou Port
Guangzhou Port is one of China’s most significant ports, though its long-term development is limited by the presence of extensive shallow areas and the heavy siltation. It is hoped that deepening the channel to 12.5 metres by the Year 2005 will ensure the port’s longer term role. Dredging is occurring and this will hopefully
improve Guangzhou’s position as a gateway to Guaugdong, Guangxi, Hunan, Hubei, Yunnan Guizhou and Sichuan Provinces into the Pearl River Delta and onwards to the Pacific Ocean. The port railroads are connected with the national rail network and highway system. In 1998 an additional five berths (Xinsha Project Phase I) were completed. Xinsha Project Phase II (10 berths for vessels up to 35,000 tons) reportedly started construction in 1997. Both ship repair and dry-docking facilities are available at Guangzhou as well as a floating crane with a 250-ton capacity. Major cargoes include coal, crude oil, ores, iron, steel, cement, timber, fertiliser and grain. There are also regular feeder services to Hangpu, Shekou and Hong Kong.
Guangzhou Port is undergoing a major expansion plan, which will allow the port to handle 100 million tons of freight annually. In 1999 the port handled 101.57 million tons of freight. Guangzhou Port signed a contract with the Singapore-based PSA Co. Ltd in April 2001. PSA is the operator of Singaore Port, the world’s second largest after Hong Kong. PSA and Guangzhou Port Authority are to invest US$100 million in improvements to the port’s handling capacity of containers. A joint stock company will be formed to run the port.