Great Waterways the bridge between China and America

Q1: For New York, New Jersey port as the gate of the eastern coast in America, what is the main difference and advantage compared with other ports in the country?

 

Peter J.Zantal：The most remarkable advantage of our port is the location. Through our port, it directly reaches 12% of the total consumer market of America. When the cargo come through our port, there is no need for the shipper to discharge the cargo in western coast, wait for the train; and then get stuck in Chicago; instead the cargo can directly enter into America market. From this point of view, the port is the most convenient and reliable path to. Another remarkable advantage is that we have 28 available waterways worldwide. 20 of them pass through Panama Canal; and the rest pass through Suez Canal. In addition, we have lots of Chinese customers are doing businesses in those routes.

 

 

 

 

 

 

 

 

     

 

 

 

 

 

   

 

 

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q2: As the globalization develops so fast, the competition of international shipping industry will be very fierce, how are you planning to win over other competitors?

 

 

Peter J.Zantal：First of all, I would like to highlight our location advantage again. We are sitting at the gate of the eastern coast of America; and we are capable of providing the most efficient and reliable waterway services. We can guarantee the duration between China and America for 22-24 days. Moreover as I mentioned, it will be more direct to transport the cargo through our port than many other ports in America. Otherwise, shipper needs rail transportation; and the cargo would usually stuck in Chicago; as a result there is no guarantee for duration. Sometimes it says the duration will be 15 days in the bill, but the actual time probably will be 20, 22 or even 24 days. Shippers cannot afford that. They need to know when exactly the cargo is coming. Consequently location is the essential element for us to compete with others.

 

 

Q3: Currently, the Chinese market is developing very fast. How do you fit into this trend?

 

 

Peter J.Zantal：China, Japan and India take up 52% of our Asia market. Not only is the Chinese market our biggest market in Asia; but also is the fastest developing market. So I would say, the market has remarkable potential in near future.

 

 

Q4: How often do you visit China for business?

 

 

Peter J.Zantal：We have branches or representative offices in Tianjin, Shanghai, Hong Kong and other port cities. We have over seven years cooperation experience with all of them. And I come to China three times this year along. It shows how important I view Chinese market.

 

 

Q5: Could you briefly introduce the relationship between New York, New Jersey port and the government?

 

 

Peter J.Zantal：We are sitting right in the middle between New York and New Jersey, so New York and New Jersey governments have the conjunct management authority on the port; and they are equal. Sometimes, it is very hard; but there is no problem in general. We have a good relationship with the two governments. In addition, we have a common operation project on passenger terminal with New York government.

 

 

Q6: How do you predict the future of international shipping market? And what ideas do you have on the port operation during the time?

 

 

Peter J.Zantal：Although America economy now is soft, we still maintain the increase rate, which is between 6%-7% annually. It is the average number over the past years. I am very happy about it. Meanwhile, our import increases slower than export. The annual increase rate of import is between 4.5% and 5%; for the export it reaches about 14%. So there will more empty containers arriving in the port and be fulfilled when they leave in the following years. There is another thought I want to mention here. As our business will keep increasing, it is going to be tough on those carriers who are doing business from western coast to eastern coast in America. It is because when the cargo comes through our port, there is no need to use carrier’s service; the market will drop a lot.

 

 

Q7: Now in Chinese market, ship owners have the most powerful position. However some industrial experts indicate that there will be more ships than total cargo volume in very near future; by that time, the situation will be completely different. What do you think?

 

 

Peter J.Zantal：I cannot explain this question from the point of view of Chinese market; instead I will explain it from the point of America market. The increase rate of Chinese trading is about 20%, in Vietnam it is between 15% and 25%, in India and EU, it is about 30%. The international market is increasing very fast in general. Then those new large ships probably will be distributed to the route between Asia and Europe. However I am still not sure if the trade market can be capable of absorbing all those ships. I believe that is the essential point in the problem.

 

 

Q8: The security system and environment becomes more important for ports, so do you have any project on that issue currently?

 

 

Peter J.Zantal：We are very concerned about security system. After 911, we have invested over 90 million US dollars on the construction of our security system. Meanwhile we work closely with coast guard, state police and city police. We often gather together and analyze issues on port protection. Consequently we have strong network to help us resolve unfortunate disasters or other possible accidents.

 

 

We also concern about environmental issue in our port. In fact, during the time of 2002-2005, we have reconstructed 95% of the environmental facilities. Until now we still devote to improving all those facilities. We cooperate with Rotterdam port to search new energy source. For example, our project of oil recycle decreases environmental pollution and turns the waste to financial value. As a result, it benefits some of our customers. Toyota is a good example on that. By combining environment management and commercial operation, we create a win-win situation; and achieve great success from commercial aspect.

 

 

Q9: Many Chinese ports are still in their developing stage, could you give some advices here please?

 

 

Peter J.Zantal：Generally speaking, Chinese ports are developing very successfully. The managing people are very efficient, smart and informative. However the problem I concern here is the internal transportation within the port. There are too many trucks in ports; and most of them are too old. I believe it is the time to remove the focus from trucks to the barge, so that the number of trucks can be reduced. Meanwhile, they should stimulate the connection with air, road and rail transportation.

 

 

Q10: What is your opinion on enterprise’ continuance?

 

 

Peter J.Zantal：In our port, we call that triple bottom lines, including finance continuance, security and environment continuance and regional benefit. I will not talk in details on the first two aspects. By regional benefit we mean how much financial benefit our port can bring to the area; how many extra employment opportunities we can increase in the area; how much tax we can pay to government; how much well being we can provide to our employees. We are a state-owned port authority, so everything we do must brings benefits to the government and the area. Consequently, when we consider one project, we must keep regional benefit in mind.