Xi'an International Trade & Logistics Park: New Wings for Western China Renovation

——Interview with Mr. Qiang Xiao’an, Vice President of XITLP
As the most crucial city and transport hub in western China, and in Yellow River middle and upper stream and in the China section of Euro-Asia Land Bridge, Xi’an is always committed to develop the outward economy. For a long term, Xi’an people always dream to set up convenient and efficient international trade channel. 

As early as in Year 2003, Xi’an Municipal Secretary General Mr. Cui Lintao participated the “Silk Road Cities Conference”. At this conference, Cui initiated the proposal of establishing Xi’an in-land Port. In Year 2004, Xi’an Municipal Government and Shanghai Municipal Government signed a strategic cooperation framework agreement, in which XITLP planning was officially launched. In Year 2005, Xi’an Municipal Government approved the XITLP Planning Proposal. XITLP were approved to be jointly built by Xi’an Municipal Commerce-Trade Committee and Baqiao District Government. In March, 2008, Shaanxi Province governor Mr. Yuan Chunqing inspected XITLP. Yuan found the severe problem of the lagged development of XITLP. Therefore, he pointed out that there should be a high-standard institution to be responsible for XITLP’s development and to realize XITLP innovation. Under this guidance, Xi’an Municipal Government approved to establish a new XITLP Administration Committee, which is a branch organization of Xi’an Municipal Government and is the Administration Body of XITLP. From then on, XITLP’s development opened a new page.    
 
       XITLP’s new Big Plan”
   
Journalist: Mr. Qiang, what adjustment and new planning do you have after the new XITLP Administration Committee leaders take position?

Qiang Xiao’an: Since its restructuring, XITLP always work in an innovative manner and grasp every minute in its progress. We take “1, 1, 1, 2” as our short-term target, that is, “Strengthen one set of policies, have one scientifically planned blueprint, build a national-class brandname and create two solid platforms: Raiway container center station and Comprehensive bonded area. 

Firstly, we modify the previous overall planning. In August, 2008, we invited some experts specialized in planning to make a research on XITLP’s planning. These experts reached consensus that the previously planned 7.68 square kilometers cannot meet the future demand of XITLP. In October, we again invited experts from China and abroad to make further research. These experts also emphasized the same conclusion, that is the previous planned space cannot meet the demand of XITLP to become the No.1 inland port and logistics park in China.

These conclusions drove us to make a scientific and foreseeing modification on the overall XITLP planning. The updated planned space is 44.6 square meters with the radiation area reaching 120 square meters. XITLP’s function structure is of 6 functions along the axis and 8 function subzones. The 8 function subzones include: Container operating zone, Comprehensive bonded zone, Intratrade zone, Comprehensive service zone, Resident Zone, National Emergency logistics zone, industry transfer hub area, city-urban unification construction zone.

We separate cargo transport and passenger transport in XITLP path design. Within XITLP is a framework of “5 horizon + 5 vertical _ 1 ring”, In Exterior XITLP is connected with the main highway paths by 7 interconnection surpasses. By integrating railway, road, air, rail-sea transport, XITLP aims to achieve a smooth cargo flow. XITLP’s new overall plan won the high praise from Shaanxi Provincial Government, Xi’an Municipal Government, experts and scholars.
 
We are also applying to be the national-class logistics park. Our goal is to build up a super-large modern trade and commerce logistics park which will radiate to the whole western China. A small logistics park will not meet this goal obviously. Therefore, we make every effort to become the national-class logistics park. By now, our application is approved by Shaanxi Development & Reform Committee, which will further submit our application to National Developmen & Reform Committee.   
       

Port Development “Acceleration”
      
Shaanxi Provincial Government and Shaanxi Municipal Government have clarified that the importance and of XITLP development should be fully aware of and every opportunity should be grasped and overcome all difficulties should be overcomed to accelerate XITLP development. By planning overally and implementing in different stages, XITLP Administration Committee will guarantee to build up a size-scale XITLP and put it into operation. With Raiway container center station and Comprehensive bonded area as two supporting platforms, XITLP will accelerate the improvement of “Hard Enviroment” and “Soft Environment” of Shaanxi Province and Xi’an Municipal Government and make contribution to the overall development of the logistics industry,
    
Journalist：We have acknowledged that the XITLP has already begun to invite investment. But, so far, the planning and construction of the XITLP was just begun about half a year ago, can the relating infrastructures meet the need for projects? And how can you reach such speed?
      
 Qiang xiaoan: At the beginning, we have confirmed the principle of our work to build the XITLP. That is a principle named ”planning while constructing and inviting investment”.
   
The first mission is to build the park. In 2008, we have finished building the Caolin Road and other 3 roads and the width of the main road have to be controlled with 120 meters. In the first phase, we have built a grass road with the width of 60 meters and completed the afforestation project along the Caolin Road and the 8.2 km long Habor Affair Avenue. Also we have accomplished the prophase designing of the Habor Affair Middle Road and other 6 roads. And at the same time, the drainage system of the built roads has completed. The supporting of water and electricity of the park and the ensuring works for the projects such as the drainage system and facility of electricity has already been completed. Now, the whole park is ready for the projects to start.

While building the infrastructures, we also attach importance to start the projects. On September 27th 2008, the biggest basic platform project in the XITLP---Xi’an Railway Container Center began to be built and completed 250 millions’ investment last year. And so far it has invited investment of 400 millions in total. The construction of the center will be completed until the end of this year and take into practice in the March of 2010. The Xi’an Railway Container Center is one of the18 railway container centers of the Chinese Railway International United Container Ltd. ,which is the first Sino-foreign equity joint venture enterprise that belongs to the Ministry of Railways, and now it is the biggest railway container center in China. The Ministry of Railways and the Chinese Railway International United Container Ltd have clearly express that the Xi’an Railway Container Center should be built as the templet for other railway container centers, which is also the goal that we are pursuing. In June this year, the XITLP has started 4 projects at the same time----the project of XITLP bonded logistics park, the project of the International Port Enterprise Headquarter, the project of the Northwestern publication logistics base and the project of the Northwestern medicine logistics center. Further more, other 4 projects will be started successively in July and August.
 
Journalist：As you mentioned just now, Xi’an has offered huge inputs to the construction of the railway container center. So what is the meaning of building the Xi’an Railway Container Center to the XITLP? How to realize its function in the hinterland area?
 
Qiang Xiaoan: To Xi’an, a hinterland city in China, the railway container center doen’t only bear the burden of cargo transportation ,more importantly, it will change the investment environment of Shanxi province and Xi’an thoroughly. The Xi’an Railway Container Center takes up an area of 137.2 hectares and the total investment on it is 630 millions Yuan. It is the biggest one of the 18 railway container centers in China. Viewing the whole designing, it embodies the importance that our country has attached on the Xi’an Railway Container Center and the meaning of strategy. This is first aspect.

The second aspect, in the past, foreign trade cargo in Xi’an had to be transported to the sea ports by road or railway first, and then waited for the train to be conveyed in the port city. The cost of logistics and time is huge. After the construction of the Xi’an Railway Container Center and relying on its strong transportation liability, the huge radiation area and the convenient ways of transportation such as railway, road and air, and the industrial policies and advantages of the bonded function in the comprehensive bonded park, the XITLP is going to make the cooperation with costal international ports the as basis and make the international ports stretch to the hinterland, then to develop the modern logistics，international trade and export processing and other businesses. And in the inland area, the development the Sea-rail Combined Transportation service makes the XITLP the hub of the Northwest Economic Circle, Bohai-Rim Economic Circle, the Yangtze River Delta and the Pearl River Delta Economic Circle and makes the XITLP an international land port and modern comprehensive commercial logistics park. Then the dream” stretch of the costal ports, deal with the documents on the spot, Sea-rail Combined Transportation service and close connection” will come true. This will improve the investment environment of Xi’an, Shanxi Province and even the west China, and reduce the logistics cost of every industry. Therefore, the function to the development of the whole west China’s city and industry economy is inestimable.
   
“To invite grand investments, to invite investment in large scale and to invite investment stably”.
Journalist: What kind of tactic does the XITLP take to invite investments? And how is it going on recently?
Qiang Xiaoan: Inviting investment is the life line of our XITLP. We have a discipline when inviting investment: “To invite grand investments, to invite investment in large scale and to invite investment stably”. Considering that the XITLP is going to be a very large modern commercial logistics park, we have to invite grand investments, to invite investment in large scale and to invite investment stably to meet the future needs. Once we set up the international harbor affair zone, we set up the standard of the projects, and the projects entering our park must agree with the development.
     
 Among the projects that have already entered our park, the scale of the Shenzhen South China Town project is relatively large. And we take the “go out and bring in” strategy and had been to the South China Town 8 times to bring in this project; and this year we have been to the South China Town 6 times to propel the cooperation, then finally, we signed the agreement of the construction of “western South China Town”. At the same time, CWT, COSCO, Maersk and other famous enterprises from China and overseas are having cooperation discussion with us. This year, we have a good start and accomplished the mission to invite investment for the first half year in advance.
      
Journalist: I have seen the rendering of the XITLP Harbor Affair Avenue, and I found that you have made many efforts to the landscaping. What make you decide to do so?
 
Qiang Xiaoan: Xi’an has 7 development zones including “4 districts, 1port and 2 bases”. And we are the youngest among the 7 development zones. We can see that the regrets left behind in the process of building them. Therefore, in the process of building the XITLP, we clearly express that we must retain good environment on the basis of persist the characteristics of the bonded logistics park and we adopt the format of the international public bidding to complete the XITLP’s planning and building the landscape. Recently, the landscaping programs of the newly built roads have already accomplished. The “green” image of the XITLP has been preliminarily showed to the public. Simultaneously, we will rely on the electronic information network technology, integrating the logistics enterprises in the western districts, and build the system of modern commercial and logistics services. And finally we will make XITLP an international, modern, and ecological commercial logistics park which has the characteristics of logistics and relies on the ecology and make it a“green port and new city” which is suitable for trade，reside，and starting new business.

     Advantage: ‘Right time, Right location, Right personnel’
Journalist: Chengdu and Chongqing are both developing to become logistics hub. What advantages does Xi’an have to become the No. One Dry Port in China?

Qiang Xiaoan: Xi’an with the objective to become leading Dry Port in China has the following advantages:

First advantage is our advantaged marketing position. Zoology is the foundation, and logistics is the feature to form a super-large modern commerce and logistics park. Meanwhile, it will also become a new eastern town in Xi’an. As a result, the first development phase of XITLP would be ‘Port’, and the second phase is ‘District’. It means, we will build up the central station for rail transportation, comprehensive bonded area and Xi’an Dry Terminal first as three essential elements for whole land transportation system. Then we will establish an advantaged developing zone to create a well developed district in the eastern of Xi’an. The first phase of XITLP takes up 44.6 square kilometers area, and it covers 120 square kilometers markets. We should say the whole project is an advantaged and comprehensive plan.

Secondly, Xi’an has favorable policy for the project development. At the very start of the project, we have already received fully support from National government, Shanxi Province government and Xi’an government. They have support us with policy and financial resources. Recently, China government has officially released one document, and especially China will develop a comprehensive Dry Port area in Xi’an. It is a great opportunity for Xi’an, meanwhile it is also a challenge. However, we will turn the challenge to great motions to establish an advanced Dry Port area.

Thirdly, XITLP has unique geographic advantage. Xi’an has a great inner land transportation network. There are around-city express road directly to Dry Port area, and Jingkun express road, Lianhuo express road, Shanhu express road, Baomao express road and some other express roads directly to other parts of China. Longhai railway, Zhengxi transportation route and passenger route are crossing the Dry Port area. The express road directly approaches Xi’an Xianyang airport, one of the six airport hubs in China. Moreover, the Yaocun airport is sitting with the Xi’an Dry Port area. With advanced air, road and rail multimodal transportation network, it forms an efficient logistics system for XITLP.

Moreover, Xi’an is sitting in the central point of China. And it is the starting point of the national western development. The city is the logistics hub in China, and has advantaged rail, express road connection. The inner land network brings Xi’an very closed to Tianshui, Yulin, Zhengzhou, Taiyuan and Wuhan. This advantage is in its nature, so it cannot be beaten up by other dry ports. As a result, it makes Xi’an become the potential logistics hub and the best choice to reach the western part of China.

The last but the most important is our professional management team. We have a young and dynamic team full with creativity. We have overcome various challenges, and work very hard to speed up the development process of Xi’an port. With all our efforts, we have achieved remarkable results, which is more than we can image about.

Xi'an-The Powerful Engine of the Western Economic Increase                  
Journalist: What do you think it is the meaning of developing Xi’an Port?
Qiang Xiaoan: The meaning for developing Xi’an Port is to provide efficient logistics service for ‘Four Areas and Two Bases’. Firstly, Xi’an Port will serve to provide logistics services for Shanxi Province and the North-west part of China. After its foundation, it will break the block for the north-west China, and form an efficient transportation system between the east and west part of China markets. It will speed up in industry framework adjustment. From our perspective, the foundation of Logistics Park is to improve the regional industrial framework. It is the concept we usually say ‘The Logistics Encourages Service and The Logistics Up-grades Industry’ and ‘The Industry Encourages Major City and The Major City Stimulates The Industry’. As a result, the foundation of Xi’an logistics center is vital for the development of western China economic increase.

We can image that all international trading companies in the western part of China can receive on-stop logistics service in Xi’an Dry Port, including all exporting procedures after the foundation of Xi’an Logistics Center. As a result, Xi’an Dry Port can provide a more efficient and cost-effective method for all companies, meanwhile, it makes the region more attractive to overseas investment. It will have remarkable impacts on improvement of regional industry framework. In conclusion, developing Xi’an Dry Port has strategic meaning, and it is the most effective way to develop the western part of China.