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Lingang's a logistical dream for manufacturers
SET 75 kilometers from downtown Shanghai, Lingang in the Pudong New Area boasts great access to road, rail, sea, air and river transport, with a Metro link to follow soon. Not surprisingly, this has attracted businesses and entrepreneurs, also swayed by its green credentials, burgeoning infrastructure and government assistance. Qu Zhi takes a trip down the coast to see for herself.
A winning combination of geography, logistics and facilities make Lingang in the Pudong New Area the perfect location for globally competitive modern manufacturing.
Located 75 kilometers from Shanghai downtown, where the Yangtze River and the Hangzhou Bay converge, Lingang has a 13km coastline ideally suited to the wharfs springing up there.
The area boasts a strong logistics network, including airport, seaport, railway, highway and inland river access.
The Pudong International Airport is to the north of Lingang and Yangshan Deep-water Port to the south. Pudong's rail network links Lingang to the national railway system, while the S2, G15 and G1501 highways form part of the Yangtze river delta highway network.
Moreover, Shanghai's Metro Line 16 is set to go into service this year, bringing Lingang into the city's subway network.
Development and construction of the industrial park was officially launched at the end of 2003, and by the end of 2012 the accumulated fixed assets investment stood at 116 billion yuan (US$18.68 billion).
Industrial total value output recorded an impressive 45-percent annual growth rate.
Over the past 10 years, Lingang's fundamental infrastructure and industrial development frame has been formed, with advanced corollary functions included.
The area is proving attractive to a growing number of large manufacturers, including Volvo, logistics groups, plus numerous entrepreneurs.
Lingang was created in a 315-square-kilometer area, consisting of six blocks - a high-tech area, a logistics area, a main area, a mixed area, Lingang-Fengxian Garden and Nanhui New City.
In the high-tech area, the focus is on manufacturing technically sophisticated products and attracting new strategic business.
Lingang's 108-square-kilometer main area concentrates on development business in sectors such as civil aviation and new energy.
It also provides services for manufacturing, the conference and exhibition sector, education and other services. Lingang's station on the forthcoming Metro Line 16 is located here.
The mixed area most reflects ecological issues, focusing on research-based business and light manufacturing.
Not yet complete, Lingang-Fengxian Garden is set to be a modern integrated area for trading and logistics services, based around high-tech produces, new energy and aviation industry suppliers.
At 68 square kilometers, Nanhui New City is the second largest of Lingang's six zones. This is a high-quality residential area, together with business consultancy facilities, business training and technology development.
Built around the 6.5km Dishui Lake, Nanhui New City radiates out through three surrounding ring road.
Logistical services are one of Lingang's strengths, and a designated 16km area has been set aside to develop services that includes port, business and special logistics.
Throughout, Lingang business is defined by "intelligence originality" - the application of independent innovation through unique core technology and intellectual property rights to realize the value of new products.
This commitment manifests itself in numerous world-leading technologies.
Among highlights of Lingang's commitment to "intelligence originality" is China's first self-designed 1,000-megawatt second generation steam generator for nuclear electricity plants.
The area can also boast the most integrated largest-scale production of equipment for the nuclear electricity sector in the world.
Other firsts at Lingang include the first wholly domestically produced 1-million-kilowatt nuclear fuel holders; the world's first low-voltage welding rotor for a 1,000MW supercritical steam turbine.
In renewables, Lingang produces machinery capable of making the world's largest wind turbines and longest wind turbine blades and has produced the first copyright protected 3.6 trillion watt offshore wind turbine.
Innovation in the automobile sector includes engines for the Rowe 550, MG6 and MG3 models - now in mass production.
Among ship-building developments, the world's largest 980mm diameter low-speed, high-power diesel engine is built at Lingang.
And in the field of ocean engineering, Lingang is one of the most advanced bases of manufacturing jack-up and semi-submersible offshore drilling platforms.
In mechanical engineering, China's biggest hydraulic crawler excavators - 200 tons with built-in intelligence - will soon be built at Lingang.
And in civil aviation, the CJ-1000A engine is being built at Lingang by the China National Aviation Corporation, for use in the forthcoming domestic C919 commercial airliner.
Lingang is one of the best ecological developing areas among 71 developing areas in Shanghai, achieving impressive efficiency in energy and water consumption integral to modern manufacturing.
Smoothing the way for all this innovation is Lingang's excellent logistics.
Road transport can achieve 60-minute Yangtze River Delta point-to-point transportation; 45-minute municipal transportation; and 15-minute regional commuting.
Lingang's coastal location also contributes to its environmental, scenic and recreational attractions, with many wetland, forest, marine life found along the strip or nearby.
Attractions such as Dishui Lake, Donghai Bridge, a seaview park, a forest park, a flower harbour and golf club help make Lingang a great place for living and working, say local officials.
"Lingang is a 'low-cost' land," sums up Jiang Jing, a publicity officer with Lingang local government.
"Capital concentrates in places with lower costs, giving Lingang an advantage over downtown Shanghai with its premium land prices," she explains.
Jiang also says Lingang offers a greener environment than other parts of the area. "You can see haze over the urban district in Shanghai, while Lingang offers a cleaner environment - like Chongming.
"I believe foreign investors will love the environment here," adds Jiang.
She also points out that Nanhui New City is creating an impressive infrastructure, bringing together business, education, accommodation, transport, amenities and leisure, helping attract businesses and highly-skilled employees.
Further inducement for employers are policies offered by Lingang local government.
"Superior policies pave the way for investment," says Jiang. "We offer the preferential policies that already exist in other districts, plus we have ones they don't have.
"Every year, Shanghai government puts in 1 billion yuan in special funding to help strategic emerging industries, high-end manufacturing energy conservation and environmental protection industries, and many more," she says.
"No matter whether you are a foreign investor or domestic business, if you meet criteria, there will be bonuses," says Jiang.
Among companies which have chosen to locate in Lingang is Atlas Copco (Shanghai) Process Equipment Co Ltd.
It is part of the Gas and Process Division of the Atlas Copco Group, which manufactures industrial tooling and equipment.
Its division in Lingang produces compressors, turbines and pumps for the chemical and petrochemical industry and the liquefied natural gas sector, among others.
Atlas Copco Shanghai also makes products for the renewables sector.
In 2007, Atlas Copco's Gas and Process Division was looking for a suitable location to build its first plant in China.
After extensive research and evaluating several options, Atlas decided to buy the land in Lingang and to develop there.
The company says it was very impressed by the logistics and support it received locally. Construction began in early 2010 and operations started in January 2011.
"Several key factors attracted us to Lingang," says Udo Junk, general manager of Atlas Copco's Gas and Process Division. "For a start, we are producing heavy machinery and see surrounding companies can be future business partners.
"And the Lingang authorities have been supportive in working together for common improvements," says Junk, who was involved in the project from the beginning.
Junk is also impressed in other Lingang developments, in addition to the business side.
"We've seen a lot of development within the industrial zone, and also in the local community," he adds. "And with the further development of public transport we hope to see an area that will continue to prosper."
Indeed, the future does look rosy. Over the next three years, Lingang is set to achieve social fixed asset investment of around 100 billion yuan.
Over the next five years the figure is expected to reach 180 billion yuan.
And in that time, Lingang is set be transformed into a vibrant, modern coastal city with more than 400,000 inhabitants.
A winning combination of geography, logistics and facilities make Lingang in the Pudong New Area the perfect location for globally competitive modern manufacturing.
Located 75 kilometers from Shanghai downtown, where the Yangtze River and the Hangzhou Bay converge, Lingang has a 13km coastline ideally suited to the wharfs springing up there.
The area boasts a strong logistics network, including airport, seaport, railway, highway and inland river access.
The Pudong International Airport is to the north of Lingang and Yangshan Deep-water Port to the south. Pudong's rail network links Lingang to the national railway system, while the S2, G15 and G1501 highways form part of the Yangtze river delta highway network.
Moreover, Shanghai's Metro Line 16 is set to go into service this year, bringing Lingang into the city's subway network.
Development and construction of the industrial park was officially launched at the end of 2003, and by the end of 2012 the accumulated fixed assets investment stood at 116 billion yuan (US$18.68 billion).
Industrial total value output recorded an impressive 45-percent annual growth rate.
Over the past 10 years, Lingang's fundamental infrastructure and industrial development frame has been formed, with advanced corollary functions included.
The area is proving attractive to a growing number of large manufacturers, including Volvo, logistics groups, plus numerous entrepreneurs.
Lingang was created in a 315-square-kilometer area, consisting of six blocks - a high-tech area, a logistics area, a main area, a mixed area, Lingang-Fengxian Garden and Nanhui New City.
In the high-tech area, the focus is on manufacturing technically sophisticated products and attracting new strategic business.
Lingang's 108-square-kilometer main area concentrates on development business in sectors such as civil aviation and new energy.
It also provides services for manufacturing, the conference and exhibition sector, education and other services. Lingang's station on the forthcoming Metro Line 16 is located here.
The mixed area most reflects ecological issues, focusing on research-based business and light manufacturing.
Not yet complete, Lingang-Fengxian Garden is set to be a modern integrated area for trading and logistics services, based around high-tech produces, new energy and aviation industry suppliers.
At 68 square kilometers, Nanhui New City is the second largest of Lingang's six zones. This is a high-quality residential area, together with business consultancy facilities, business training and technology development.
Built around the 6.5km Dishui Lake, Nanhui New City radiates out through three surrounding ring road.
Logistical services are one of Lingang's strengths, and a designated 16km area has been set aside to develop services that includes port, business and special logistics.
Throughout, Lingang business is defined by "intelligence originality" - the application of independent innovation through unique core technology and intellectual property rights to realize the value of new products.
This commitment manifests itself in numerous world-leading technologies.
Among highlights of Lingang's commitment to "intelligence originality" is China's first self-designed 1,000-megawatt second generation steam generator for nuclear electricity plants.
The area can also boast the most integrated largest-scale production of equipment for the nuclear electricity sector in the world.
Other firsts at Lingang include the first wholly domestically produced 1-million-kilowatt nuclear fuel holders; the world's first low-voltage welding rotor for a 1,000MW supercritical steam turbine.
In renewables, Lingang produces machinery capable of making the world's largest wind turbines and longest wind turbine blades and has produced the first copyright protected 3.6 trillion watt offshore wind turbine.
Innovation in the automobile sector includes engines for the Rowe 550, MG6 and MG3 models - now in mass production.
Among ship-building developments, the world's largest 980mm diameter low-speed, high-power diesel engine is built at Lingang.
And in the field of ocean engineering, Lingang is one of the most advanced bases of manufacturing jack-up and semi-submersible offshore drilling platforms.
In mechanical engineering, China's biggest hydraulic crawler excavators - 200 tons with built-in intelligence - will soon be built at Lingang.
And in civil aviation, the CJ-1000A engine is being built at Lingang by the China National Aviation Corporation, for use in the forthcoming domestic C919 commercial airliner.
Lingang is one of the best ecological developing areas among 71 developing areas in Shanghai, achieving impressive efficiency in energy and water consumption integral to modern manufacturing.
Smoothing the way for all this innovation is Lingang's excellent logistics.
Road transport can achieve 60-minute Yangtze River Delta point-to-point transportation; 45-minute municipal transportation; and 15-minute regional commuting.
Lingang's coastal location also contributes to its environmental, scenic and recreational attractions, with many wetland, forest, marine life found along the strip or nearby.
Attractions such as Dishui Lake, Donghai Bridge, a seaview park, a forest park, a flower harbour and golf club help make Lingang a great place for living and working, say local officials.
"Lingang is a 'low-cost' land," sums up Jiang Jing, a publicity officer with Lingang local government.
"Capital concentrates in places with lower costs, giving Lingang an advantage over downtown Shanghai with its premium land prices," she explains.
Jiang also says Lingang offers a greener environment than other parts of the area. "You can see haze over the urban district in Shanghai, while Lingang offers a cleaner environment - like Chongming.
"I believe foreign investors will love the environment here," adds Jiang.
She also points out that Nanhui New City is creating an impressive infrastructure, bringing together business, education, accommodation, transport, amenities and leisure, helping attract businesses and highly-skilled employees.
Further inducement for employers are policies offered by Lingang local government.
"Superior policies pave the way for investment," says Jiang. "We offer the preferential policies that already exist in other districts, plus we have ones they don't have.
"Every year, Shanghai government puts in 1 billion yuan in special funding to help strategic emerging industries, high-end manufacturing energy conservation and environmental protection industries, and many more," she says.
"No matter whether you are a foreign investor or domestic business, if you meet criteria, there will be bonuses," says Jiang.
Among companies which have chosen to locate in Lingang is Atlas Copco (Shanghai) Process Equipment Co Ltd.
It is part of the Gas and Process Division of the Atlas Copco Group, which manufactures industrial tooling and equipment.
Its division in Lingang produces compressors, turbines and pumps for the chemical and petrochemical industry and the liquefied natural gas sector, among others.
Atlas Copco Shanghai also makes products for the renewables sector.
In 2007, Atlas Copco's Gas and Process Division was looking for a suitable location to build its first plant in China.
After extensive research and evaluating several options, Atlas decided to buy the land in Lingang and to develop there.
The company says it was very impressed by the logistics and support it received locally. Construction began in early 2010 and operations started in January 2011.
"Several key factors attracted us to Lingang," says Udo Junk, general manager of Atlas Copco's Gas and Process Division. "For a start, we are producing heavy machinery and see surrounding companies can be future business partners.
"And the Lingang authorities have been supportive in working together for common improvements," says Junk, who was involved in the project from the beginning.
Junk is also impressed in other Lingang developments, in addition to the business side.
"We've seen a lot of development within the industrial zone, and also in the local community," he adds. "And with the further development of public transport we hope to see an area that will continue to prosper."
Indeed, the future does look rosy. Over the next three years, Lingang is set to achieve social fixed asset investment of around 100 billion yuan.
Over the next five years the figure is expected to reach 180 billion yuan.
And in that time, Lingang is set be transformed into a vibrant, modern coastal city with more than 400,000 inhabitants.
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