Yingkou Port: “Golden Ocean Entrance” of Northeast China

Apr 2, 2010

Journalist: It is said that Yingkou Port is developing together with renovation of China Northeast old industry base and the development of Liaoning middle city cluster. What’s your idea about this?

Mr. Gao: Indeed, Yingkou Port is developing with the renovation of China Northeast old industry base and together with Liaoning Middle City Cluster. From this I also want to say that Yingkou Port will take a broader viewpoint in specifying Yingkou Port’s development plan.
In addition, the coastal industry developed in Yingkou is also a great support to Yingkou Port. Now several manufacturers such as Anshan Steel, China Metallurgy and China Ore enter Yingkou costal industry zone. Shenyang Economic Zone is the key hinterland for Yingkou Port and develops rapidly in recent years. We have crude oil pipeline from Xianrendao terminal to Panjin. Generally, the hinterland economy is very active, which facilitates Yingkou Port’s development. 

Journalist: Early in Year 2003, you proposed that Yingkou Port will achieve a cargo throughput of 100 million tones in 2010. Actually, this aim was achieved in advance in Year 2007. What factors lead Yingkou Port make such a progress in advance?

Mr.Gao: The first factor is our geographical location, which is a valuable asset for Yingkou Port. You know, port size and service can be improved relatively easily compared with geographical location. 

Yingkou Port has the shortest distance with Northeast China hinterland, which will help customers lower their transportation cost, improve their logistics efficiency and expand their profit potential. Vividly speaking, Yingkou Port aims to set up loading/discharging terminals at the gate of shippers. In future Yingkou Port is not just a port enterprise in simple sense, it will turn to be the port for the whole Liaoning province and even the whole Northeast China. This is what we must achieve and is our social responsibility.
The second factor is our hinterland economy. As we just talked, Yingkou Port’s throughput cannot grow so rapidly without its hinterland economy In recent years the rapid development of Northeast China old industry base and Shenyang Economy Zone greatly promote the development of port economy, which make Yingkou Port achieve the goal of 100-million ton port in advance.

Journalist: In addition to geographical location, what advantages does Yingkou Port have? 
 Mr. Gao: To win from competition, Port should have complete port functions, low logistics cost and excellent port services.
  Yingkou Port puts port function in the first place, and we can achieve cost-savings in land transport thanks to our geographical advantage. In addition, we emphasized service in a broad sense covering efficiency and service quality. For example, the service for a ship owner includes anchorage, loading/discharging efficiency, free-of-delay, troubleshooting, third-party logistics service and so on. All these constitute port competitiveness.  
Journalist: Yingkou Port’s “waiter” service mode is widely known in the Chinese shipping industry. Can you explain this service mode in more detail?
Mr. Gao: The “waiter” service mode means trying to give the best and considerate service to our customers and it is our consistent service mode. And we also add the modern concept such as the third-party logistics concept and information service to this previous mode. In this way, we try to reach the modern service level.   
Journalist: Now port environment is under the spotlight. And we know that Yingkou Port’s coastal industry zone has some heavy industries such as steel, petro-chemistry and power, which has some impact on environment. What measures does Yingkou Port take in handling this?

Mr. Gao: We have ushered in environment protection for the past 2-3 years. We separate the bulk cargo of different pollution levels. For example, our dock A is specially build for charcoals considering that charcoal may pollute other cargoes.  Second, we plant trees for greening to block waste gas and dust. .   
 Third, we also purchased the whole set of spray system for environment protection. Fourth, we will adopt dust screen and wind screen facilities to resist pollution. Fifth, we will build terminals for special cargoes.
By combing these measures, I’m sure that the pollution will be reduced to a great extent. 
Journalist: We got the news that Port of Dalian will build itself to be the Northeast China shipping center and Liaoning provincial government requires Jinzhou Port, Dandong Port, Huludao Port to cooperate with Port of Dalian by adding equity. What will it affect port development in Northeast China and what’s the advantage of Yingkou Port in port competition?
Mr. Gao: The port cooperation is a kind of resource integration and can facilitate the port development in Northeast China. Port of Dalian is a powerful group with a long history, rich managerial expertise and economy base. This cooperation will surely bring some advanced concept to other ports and further stimulate the overall development of all ports in Liaoning. In the meantime, this integration can increase more transshipment cargo in port of Dalian and can facilitate the development of shipping center. 
This integration changes the port framework in Northeast China. Previously, Port of Dalian, Jinzhou Port, Dandong Port, Yingkou Port and Huludao Port, no matter large or small, are competitors. Now only 2 competitors left in Northeast China, one is Port of Dalian, the other is Yingkou Port.
Once this framework in which two ports compete for the same hinterland is shaped, the development plan surely will be adjusted. When we formulate our development plan, we will consider more about how to avoid repetitious construction and how to distinguish our own advantages. 
And the co-existence of the two ports is beneficial to the hinterland economy because it will avoid monopoly. Our competitor will give us pressure and facilitate us to keep improving ourselves.
Within this framework, we will review our own development plan and cooperate with each other. And we have some experience of cooperating with Port of Dalian in have sound effect, and we will keep on our cooperation.
Note:  The thriving of Northeast China economy provides a historical opportunity to Yingkou Port with a sound location. Yingkou Port cannot meet the demands of Northeast China economy without a sizable capability. Therefore, Yingkou Port must be powerful.

Honored Guests
Mr. Gao Baoyu is interviewed by SHIPPINGCHINA journalist
Mr. Gao Baoyu is interviewed by SHIPPINGCHINA journalist
Bayuquan zone of Yingkou Port
Bayuquan zone of Yingkou Port
Container terminals and yards of Yingkou Port
Container terminals and yards of Yingkou Port
Coal terminal and yard of Yingkou Port
Coal terminal and yard of Yingkou Port