Learning How To Developing the Container Port

The story below, show us how the China Government built the largest container deepwater port of Yang Shan. I don't think that we are on Batam Island can do the same. Read this carefully..!!

China Shipping Terminal Development Co., Ltd. (CSTD), a subsidiary of the Shanghai-based China Shipping Group, and Hong Kong container terminal operator Modern Terminals Limited, a member of the Wharf Group, have recently signed an agreement to participate jointly in the development of the Yang Shan Deepwater Port project in Shanghai.

A press conference was held in the Shanghai International Convention Centre, followed by the signing ceremony on 14th August 2003. The events were co-hosted by Mr Li Kelin, President, and Captain Mao Shijia, Assistant President of the China Shipping Group; and Mr Erik Bogh Christensen, Managing Director of Modern Terminals.

It was pointed out that the Central Government and the State Council of the People’s Republic of China are giving their full support to the development of Yang Shan Deepwater Port. The Shanghai Municipal Government and authorities in neighbouring provinces are providing their strong backing to the project. All these bodies regard the construction of an international shipping centre in Shanghai as an important element and a high priority in China’s economic development during the 21st century.

To enhance the overall competitiveness of China’s position as an international container terminal hub in the Northeast Asia region, Shanghai needs to develop a deep-water container port with a draft of at least -15 metres that can cope with the growing size of container vessels and the establishment of strategic alliances and networks by the world’s shipping lines. Yang Shan Container Port will be designed to handle container vessels of the latest generation, with a capacity of 8,000 TEUs.

The companies expressed their delight at the endorsement of their alliance by the Shanghai Municipal Government. Leveraging on their respective expertise as a major shipping line and a highly experienced container terminal operator, they believe they will be able to realise the project’s full potential, enabling it to play an important role in transforming Shanghai into one of China’s leading international economic, financial, trading and shipping centres.

“China Shipping (Group) Company aims to build itself into a world-class shipping enterprise in the period of the current 10th five-year plan. This is in line with the government targets of turning Shanghai into an international shipping centre and developing Shanghai Port as the world’s third largest container hub port,” said Mr. Li Kelun, President of the Group.

Mr. Erik BØgh Christensen, Managing Director of Modern Terminals, remarked on the cooperation between the two companies, “This is a very good example of an all-win solution for the development of the Yang Shan Deepwater Port. Modern Terminals, with our 3-decade solid foundation of terminal development and operations expertise, is very delighted to be able to contribute to this big port infrastructure project in Shanghai.”

The two companies established a joint working team for the project in July. Feasibility studies are now underway, and the working team will liaise more actively with all the other parties concerned during the coming months. A joint venture company will be formed in due course as the vehicle for their investment in the project and its subsequent development.

China Shipping Terminal Development Co., Ltd in brief

China Shipping Group (China Shipping) is one of the key state-owned enterprises under the direct administration of the Chinese Central Government and is a super-large shipping conglomerate that operates across different sectors, different regions and countries. China Shipping (Group) Company operates five specialized shipping fleets of container vessels, oil tankers, bulk ships, passenger ships and special cargo ships, with a total number of more than 400 vessels, deadweight of more than eleven million tons, container transport volume of over 3.5 million TEUs and throughput of 200 million tons per annum. It also operates terminal management, integrated logistics, finance and investment, engineering and manning service, supply and trading and information technology. China Shipping Development and China Shipping (Hainan) Haisheng, both controlled by China Shipping (Group) Company, are listed on the Hongkong and Shanghai stock exchanges respectively.

Established in April, 2001, China Shipping Terminal Development Co., Ltd. (CSTD), one of the first-class subsidiaries affiliated to China Shipping Group, specializes in domestic and foreign marine terminal investment, operation and management. Currently China Shipping Terminal Development has joint ventures to operate several container terminals in the ports of Dalian, Lianyungang, Shanghai and port of Los Angeles in the United States. The annual handling capacity of these terminals reaches four million TEUs.

Based on the terminal development strategy of supporting and serving container shipping and integrated logistics, CSTD is focusing on the investments in domestic coastal and overseas hub port terminal projects. Recently CSTD has signed letters of intent regarding joint development of container terminals in ports of Tianjin and Xiamen. CSTD is also looking for investment opportunities in oil, LNG/LPG and auto roro terminals. It is expected that China Shipping terminal industry will have a total capacity of five million TEUs per annum by 2005 and ten million TEUs by 2010, so as to form a diversified and large-scale terminal industry layout and to become China Shipping Group’s vital pillar industry and source of profit.

Modern Terminals in brief

Modern Terminals opened Hong Kong’s first purpose-built container terminal in September 1972. It currently owns and operates Terminals 1, 2 and 5, plus Terminal 8 (West), handling 4 million TEUs per annum. The company will shortly start operating four berths at the new Container Terminal 9 (South), which together with productivity enhancement will give an increased total capacity of 5.5 million TEUs per annum.

In 2000 it established ModernPorts.com, Hong Kong’s first one-stop e-business portal providing a wide range of port-related services for the shipping community. In February 2003, it jointly established OnePort Limited with other terminal operators to improve the efficiency of business processes in the Container Port through an open, secure and neutral platform for exchanging electronic information. In 2002, the company launched the PRD Inland Gate, a unique network of dedicated daily feeder services that provide a faster, more efficient, cost-effective and reliable means of moving containers between Hong Kong Container Port and major manufacturing centres in the Pearl River Delta.

In 1998, Modern Terminals began to extend its operations to the Mainland by winning the management contract for Shekou Container Terminals (Phase 1) in Shenzhen through a joint venture with P&O Ports. It subsequently acquired equity stakes in Chiwan Container Terminal Co., Ltd., and Shekou Container Terminals (Phase 2). The opening of Modern Terminals’ Shanghai Representative Office in 2002 signalled the company’s commitment to extend its participation in port developments to Northern and Eastern China.