Inland waterway is the way forward
By Ding Yining |
July 29, 2010, Thursday
|
Print Edition
Print Edition
EDITOR'S note:
Stepping out of the impact of the global financial crisis, Shanghai has been revving up efforts to develop its economy in a sustainable way. That involves a transition in the economic structure with a focus on advanced manufacturing, services and high-tech industries. Besides, measures are being put in place to improve people's living standards and spur innovation. Shanghai Daily's weekly column tracks the changes as well as their influence on the city and its people.
PanAsia Shipping Co and other water transport companies are looking upstream at the Yangtze River as Shanghai seeks to develop its Yangshan Deep-water Port in Hangzhou Bay into a major trans-shipment hub.
PanAsia, a wholly-owned unit of Cosco Container Lines Co, was among the first to open direct shipping lines to the upper and middle reaches of the Yangtze River, the longest in Asia at 6,300 kilometers.
"Inland river transportation will play an even more important role as global trade recovers and shipping demand picks up in the central China region," said Sun Jiakang, general manager of Cosco Container Lines.
More than 80 percent of goods exported through Shanghai come from the upper reaches of the Yangtze River, according to port statistics. China is shifting its economic development focus to less-developed inland regions, where labor costs are cheaper and the fruits of growth less established.
Two of PanAsia's self-built container carriers, each with capacity of 308 TEUs (20-foot equivalent units), are used to transport containerized cargo from Taicang City through the Yangtze River to Yangshan port. Jiangsu Province's Taicang lies about 65 kilometers northwest of Shanghai and is home to 22 domestic branches of the world's Top 500 companies and many original equipment manufacturers that take outsourcing orders.
A third carrier will go into operation in mid-August for transporting cargo between the Yangtze River city of Jiangyin in Jiangsu and Yangshan port. Previously, goods that arrived in Shanghai's older Waigaoqiao Port on smaller carriers were transported to Yangshan port by road, adding to cargo costs.
PanAsia plans to have nine container ships in operation by the end of this year, with shipping lines expanded to Nanjing and Zhangjiagang on the lower reaches of the Yangtze River, and to Wuhan on the middle reaches.
"Increasing direct shipping lines to the upper reaches of the river will offer manufacturers a non-rail option for moving goods," said Zhou Deping, general manager of the branch line shipping division at PanAsia. "Water transport has the added advantage of being a greener, more energy-efficient way to move cargo."
Shanghai is at the forefront of efforts to boost business development in the Yangtze River Delta region. Establishing transport links with major inland cities upstream is part of a broader strategy.
"Regional economy development relies heavily on transport, so it's natural for us to help provide integrated services," Cosco's Sun said.
Throughput of containers operated by PanAsia through the Yangtze River to Shanghai climbed to 450,000 TEUs in 2009, an 11 percent rise from a year earlier.
"Closer integration of logistics and shipping companies in the Yangtze River Delta region will boost Shanghai's position as a shipping hub and benefit neighboring ports as well," Industrial Securities analyst Zhu Feng said.
Among the guidelines that the State Council, China's Cabinet, has issued in its policy of turning Shanghai into a major shipping hub, water has a bigger role to play.
"The proportion of transport by waterways and rail is still very low in Shanghai," said Huang Rong, director of the Committee of Shanghai Urban Construction and Communications.
Waterway transport accounted for only 37.5 percent of cargo-carrying in the city last year, the committee said. Railway made up less than 1 percent. By contrast, more than 62 percent are handled by highway transport. The figure was 51 percent in Rotterdam over the same period.
Traffic jams not only lowered efficiency, but also added to the transport cost.
Tongsheng Investment Group, developer of Yangshan port, one of the largest ports of its kind in the world, said it will focus on development of inland waterway to link in the next few years.
Yangshan port, southeast of Shanghai, has been designed as a major hub linking the Yangtze River Delta region with Asia and ports beyond.
Shanghai began construction of the port in 2002. The first three phases in the northern section, comprising 16 berths with an annual capacity of 9.3 million TEUs, went into operation at the end of 2008.
Planning and designing for the western section of the deep-water port is still under way. The city is expecting the annual handling volume of all its container ports to reach 40 million TEUs by 2020.
The city is working on a pilot program to offer tax rebates to exporters of dry bulk goods and containers departing from coastal Qingdao City in Shandong Province and the Yangtze River port of Wuhan that use Yangshan port as a transfer hub.
"The pilot plan will kick off in the next few months," said Wen Xuexiang, vice director of the Shanghai Customs Office.
The government is also offering other incentives, including waivers on business taxes for shipping firms, logistics companies and warehouse operators registered at Yangshan.
Stepping out of the impact of the global financial crisis, Shanghai has been revving up efforts to develop its economy in a sustainable way. That involves a transition in the economic structure with a focus on advanced manufacturing, services and high-tech industries. Besides, measures are being put in place to improve people's living standards and spur innovation. Shanghai Daily's weekly column tracks the changes as well as their influence on the city and its people.
PanAsia Shipping Co and other water transport companies are looking upstream at the Yangtze River as Shanghai seeks to develop its Yangshan Deep-water Port in Hangzhou Bay into a major trans-shipment hub.
PanAsia, a wholly-owned unit of Cosco Container Lines Co, was among the first to open direct shipping lines to the upper and middle reaches of the Yangtze River, the longest in Asia at 6,300 kilometers.
"Inland river transportation will play an even more important role as global trade recovers and shipping demand picks up in the central China region," said Sun Jiakang, general manager of Cosco Container Lines.
More than 80 percent of goods exported through Shanghai come from the upper reaches of the Yangtze River, according to port statistics. China is shifting its economic development focus to less-developed inland regions, where labor costs are cheaper and the fruits of growth less established.
Two of PanAsia's self-built container carriers, each with capacity of 308 TEUs (20-foot equivalent units), are used to transport containerized cargo from Taicang City through the Yangtze River to Yangshan port. Jiangsu Province's Taicang lies about 65 kilometers northwest of Shanghai and is home to 22 domestic branches of the world's Top 500 companies and many original equipment manufacturers that take outsourcing orders.
A third carrier will go into operation in mid-August for transporting cargo between the Yangtze River city of Jiangyin in Jiangsu and Yangshan port. Previously, goods that arrived in Shanghai's older Waigaoqiao Port on smaller carriers were transported to Yangshan port by road, adding to cargo costs.
PanAsia plans to have nine container ships in operation by the end of this year, with shipping lines expanded to Nanjing and Zhangjiagang on the lower reaches of the Yangtze River, and to Wuhan on the middle reaches.
"Increasing direct shipping lines to the upper reaches of the river will offer manufacturers a non-rail option for moving goods," said Zhou Deping, general manager of the branch line shipping division at PanAsia. "Water transport has the added advantage of being a greener, more energy-efficient way to move cargo."
Shanghai is at the forefront of efforts to boost business development in the Yangtze River Delta region. Establishing transport links with major inland cities upstream is part of a broader strategy.
"Regional economy development relies heavily on transport, so it's natural for us to help provide integrated services," Cosco's Sun said.
Throughput of containers operated by PanAsia through the Yangtze River to Shanghai climbed to 450,000 TEUs in 2009, an 11 percent rise from a year earlier.
"Closer integration of logistics and shipping companies in the Yangtze River Delta region will boost Shanghai's position as a shipping hub and benefit neighboring ports as well," Industrial Securities analyst Zhu Feng said.
Among the guidelines that the State Council, China's Cabinet, has issued in its policy of turning Shanghai into a major shipping hub, water has a bigger role to play.
"The proportion of transport by waterways and rail is still very low in Shanghai," said Huang Rong, director of the Committee of Shanghai Urban Construction and Communications.
Waterway transport accounted for only 37.5 percent of cargo-carrying in the city last year, the committee said. Railway made up less than 1 percent. By contrast, more than 62 percent are handled by highway transport. The figure was 51 percent in Rotterdam over the same period.
Traffic jams not only lowered efficiency, but also added to the transport cost.
Tongsheng Investment Group, developer of Yangshan port, one of the largest ports of its kind in the world, said it will focus on development of inland waterway to link in the next few years.
Yangshan port, southeast of Shanghai, has been designed as a major hub linking the Yangtze River Delta region with Asia and ports beyond.
Shanghai began construction of the port in 2002. The first three phases in the northern section, comprising 16 berths with an annual capacity of 9.3 million TEUs, went into operation at the end of 2008.
Planning and designing for the western section of the deep-water port is still under way. The city is expecting the annual handling volume of all its container ports to reach 40 million TEUs by 2020.
The city is working on a pilot program to offer tax rebates to exporters of dry bulk goods and containers departing from coastal Qingdao City in Shandong Province and the Yangtze River port of Wuhan that use Yangshan port as a transfer hub.
"The pilot plan will kick off in the next few months," said Wen Xuexiang, vice director of the Shanghai Customs Office.
The government is also offering other incentives, including waivers on business taxes for shipping firms, logistics companies and warehouse operators registered at Yangshan.
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