Qingdao to inject $1.5b in port expansion

The Port of Qingdao, the world's ninth largest, will triple its annual investment from more than US$452.96 million $1.51 billion in 2011, said Chang Dechuan, president of Qingdao Port (Group).

He added that Qingdao would also construct a 300,000 tonne oil dock and a 250,000 tonne coal dock, reported China Daily.

"Next year will be crucial for the port's extension," he said during the World Shipping (China) Summit.

The port will realise a container throughput of more than 12 million TEUs and total cargo throughput of more than 350 million tonnes in 2010, Chang said.

He expected a year-on-year increase of eight percent for total throughput and 10 percent for container throughput in 2011.

"The port capacity is less than the actual throughput, that's why we are accelerating investment to expand the docks to accommodate larger ships," he said.

It is also considering preparing further dock construction for Chinamax, a domestically manufactured ship of 400,000 tonnes, which will be delivered in the first quarter of next year.

In 2010, the port invested more than $452 million to construct an iron ore dock of 300,000 tonnes.

Chang said the increased investment would be raised by the port itself. Apart from dock construction, the money would also be used to introduce new technologies and restructure work processes.

Annually, Qingdao Port will spend about $4.53 million on clean and green operations to reduce energy consumption and environmental pollution.

Since 2009, the port has been tweaking its business strategy to focus more on the import side by reducing the momentum on its more export-oriented container business and focusing on more profitable iron ore and oil imports.

As the nation's largest iron ore and crude oil port, it has focused on the container sector in recent years, and is expected to surpass South Korea's Busan Port to become Northeast Asia's market leader in one or two years.

In 2009, the port finalised a total throughput of 315 million tonnes. The revenue was more than $1.81 billion, and profit rose six percent year-on-year to $422.76 million.

Chang said revenue would further increase this year, and profits will rise by more than 10 percent year-on-year to more than $452.96 million.

The new dock at Dongjiakou would be the first in China to accommodate ships big enough to carry 400,000 tons.

The port will build four docks for ships with a 400,000 tonne capacity, two for ships with a 200,000 tonne capacity and five docks for ships with a 100,000 tonne capacity.

According to the construction plan, 112 berths will be constructed at Dongjiakou, 21 more than at the existing port.

Tian said the capacity of the new docks would be about 40 million tonnes in three to five years, exceeding the traffic of the existing Qingdao Port.

As part of its expansion project, Qingdao is also developing a bonded port area to attract more domestic and international resources.
(Source:www.cargonewsasia.com)