Lianyungang Port, irresistible force for victorious advance

Interviewing with Mr. Yu Xiangyang, Chairman of Lianyungang Port Group
   
　　Dozens of great ports compete to advance like hundreds of boats, the wiser and brave person will win

Journalist: There are dozens of great ports along China coast and Lianyungang Port is located in the navel part of China coast. What’s the reason for Lianyungang port’s rapid emerging in recent years?
Mr. Yu: Indeed, China has dozens of great ports, which compete to advance like hundreds of boats. In recent years, all the China ports develop by leaps and bounds and the competition is very fierce. We will lag behind if we don’t advance or advance slowly. As the old Chinese saying goes, “The wiser and brave person will win from fierce competition”. During the fierce competition, we must have strong confidence and have a solid goal. When looking back, there are several reasons for our rapid progress recently.    

Firstly, we grasp every opportunity proactively. All the staff members of Lianyungang port try every means to overcome difficulties to accomplish the set goal of 3 million container throughput and 100 million cargo throughput. Meanwhile, we give emphasis on Lianyungang Port’s hardware (that is infrastructure) and software (that is service). By doing these, we gained the premise for more opportunities. Every port has the equal opportunity. How to get more opportunity depends on the power and wisdom. Unremitting effort is the necessary path for us to be more powerful. 
In recent years, China central government, Jiangsu provincial government and Lianyungang municipal government attach great importance to the development of Lianyungang Port. Lianyungang Port has gained great support in terms of strategy, policy and welfare. Recently China State of Council Standing Conference has passed Development Plan for Jiangsu Coastal Area, which proposed to take Lianyungang Deep-water Port Development as the focus to build Lianyungang Port as a radiating start point of new Asia-Euro Land Bridge. Senior officials of China Central Government Mr. Xi Jinping, Mr. Zhang Dejiang and Mr. Chen Zongxing have visited Lianyungang Port to give concern to development of Lianyungang Port. With these great supports, we still make down-to-earth and preempt effort to pave our way to success.  
Secondly, we try to improve port hardware and service to achieve sustainable and rapid development. In recent years, with emerging of more and more larger-volume vessels, we have built the deep-water shipping channels and larger terminals follow the trend of international vessel. The deep-water shipping channels have been upgraded from 70,000 tons to 150,000 tons and the water depth has reached 16.5 meters, which is nearly equal to that of international sample ports. 200,000-ton large bulk vessel can enter the port with tide and 150,000-ton vessel can enter the port at any time. This is a true deep-water port. Presently we have launched 300,000-ton shipping channel project, which will be accomplished in 2012. And we also built the Generation-5 and Generation-6 container terminal berth group, which the largest 10,000-container vessel in the world can freely call at.  
We also built the most advanced deep-water berth for charcoal and fertilizers as well as the 300,000-ton ore berth. The capacity of the newly-built terminals in the past 4-5 years has overpassed the overall capacity of terminals in the past 70 years so that the holding capacity has reached 80 million tons. Those large vessels we cannot hold in the past can enter the port now. Now we have larger berth, deeper shipping channels, more shipping routes, more large vessels and larger capacity, which means larger cargo throughput.
In software construction and service, Lianyungang Port holds the principle of “Take Client as God and Provide Excellent Service for Client”, which has become the spontaneous activity of Lianyungang staff members. Lianyungang Port has been awarded “Five-star port” for consecutive four years and has been ranked first in “China Port & Shipping Star Service List”. We also rank first among China ports in port informatization and e-commerce development. We have a friendly and loose inspection environment, and we connect port management and port-entry service closely to provide highly-efficient service for clients. We also make foreseeing effort in extending the service of port-entry by building “Inland port” in China hinterland to attract more cargo.
Thirdly, the rapid economy development of China hinterland along Euro-Asia Land Bridge and emerging of more efficient transport paths are the driving force of Lianyungang Port development. Lianyungang Port’s direct hinterland is Northern part of Jiangsu Province, but Lianyungang Port can also cover 11 provinces along Gansu-Qinghai and Lanzhou-Xinjiang railway and dozens of countries radiated by Euro-Asia Land Bridge. In recent years Mid-Asia countries gained rapid economy development and many cargoes are transported by Land-Bridge transport mode. This greatly increases cargo resources for Lianyungang Port. 

In the meantime, the economy renovation along Gansu-Qinghai and Lanzhou-Xinjiang is a great advantage for Lianyungang Port.

Journalist: Not long ago, Development Plan for Jiangsu Coastal Area approved by China State of Council Standing Conference brings new opportunity for the development of Lianyungang Port. What are the shining points of this document regarding future development of Lianyungang Port?
　　    Yu Xiangyang: The principles of Development Planning of Jiangsu Coastal Districts has been approved, and this event makes Lianyungang port stand in the new starting line. The State Council Standing Committee points that Jiangsu coastal area is in the crossway of the 3 main productivity layouts’ axis which are our country’s coastal productivity layout, the productivity layout of the districts along Yangtze River and the productivity layout of the districts along the Long Hai-Lan New Line. Lianyungang port is in such important point of the “丌” crossway of coastal districts and continental bridge. The special geographical place of Lianyungang port is significant for the promotion of the Middle-west region’s development and the communication and collaboration between China and Middle Asia, Europe and South-east Asia.  
    Firstly, in aspect of the construction of Coastal Ports Group, the Plan states that we should accelerate the construction of Costal Ports Group which Lianyungang Port is in the center of it and make it the Eastern Bridgehead of the new Euraisan Continental Bridge which owns a strong driving ability and is the hub of this important and strategic place.
    Secondly, in the aspect of consummating the system of port, the Planning states that Lianyungang Port is a main National port, a regional central port, the hub of the Jiangsu Coastal Ports Group, an important hinge of our country’s transportation system and the significant part of the North Wing of Shanghai International Shipping Center. Lianyungang Port should accelerate the construction of the deepwater channel, new port districts and develop the main line container shipping, enhance the port functions, expand the fields of service and develop the ability to service the Middle-West region. Yancheng Port is the feeder port of Shanghai International Shipping Center and the combination port of Lianyungang Port.
   Thirdly, in the aspect of expand the port ability, the Planning states that we should promote the construction of the 300-thousand-ton deep water channel and start to build the channel of Xuwei and Ganyu port areas and dredge when it is needed according to the development of the industry; We should accelerate the building of over 100-thousand-ton container berth and confirm the large scale deep water berth layout for Crude Oil and Ore as soon as possible. And we should impulse the construction of the Coal Terminal and the deep water berth of Ganyu Port Area and the over 10-thousand-ton berth’s construction in Guanhe Port Area.
  Fourthly, in the aspect of enhance the service functions, the Planning states that we should accelerate the construction of the Lianyungang Shipping Trade Market and enhance the level of the Examine units and examine establishments of the port to build a first class port on both wings. And we should consummate the Port Clearance System by constructing EDI system. Reinforce the collaboration with the Long Hai-Lan New Line and other regions in North Jiangsu and build up “Dry Ports” in main cities. Positively promote the international train from Lianyungang to Moscow westwards to realize the full line of the Long Hai-Lan New Line.
   Fifthly, in aspect of the comprehensive transportation system, we will accelerate the building of the railway along the coast and attach importance to the construction of the railway from Lianyungang to Yancheng and the railway form Nantong to Shanghai. And we will accelerate the building of the Long Hai railway’s passenger special line and actualize the reconstruction of electrization of the Lian-Xu Line to make the ability of Landbridge railway stronger. The railway from Suzhou to Huai’an to Lianyungang will be built and according to the demand of the development of the Lianyungang Xuwei port area and other port areas, the relating railways in port areas will be built. Make Lianyungang Shugang Channel the center, accelerate the building the main channels such as Lian-Shen line and Guanghe to open the Lian-Xu ship channel. We will speed up to promote expansion project of the national highway and provincial highway network to realize the link of the high degree roads and the coastal ports and industrial districts, so that we can make the coastal high degree roads run through from North to South.
　   Sixly, in the aspect of the port industry, we will plan petrochemical project along the coast of Jiangsu and attach importance to develop the large demanded high value-added petrochemical products in accordance with the deep water ports and market demand in the surrounding districts. Speed up to adjust the layout of the steel industry and eliminate the behindhand industry, promote the reconsolidation of the enterprises, bring in the steel enterprises from districts along the Yangtze River and inland area to Lianyungang and specially develop the enterprises to meet the needs that the coastal manufacturing bases have large demand on the steel products. Go on with the prophase work of the LNG project of Lianyungang and plan the Oil and Gas Reserve base in Lianyungang timely and plan to build the crude oil pipeline of the Lianyungang line.
   Seventhly, in the aspect of the service industry, we will take the advantages of the port, airport and other important communication hinge and node to build a modern logistics base and create the chances for Lianyungang to bring in the development of the passenger liner economy and so on. From all the projects and policies we can have a view that Lianyungang is the carrier that hauls regional development and it is also the most important part of the development of Jiangsu coastal districts.
   Journalist: What do you think of the qualifications that Lianyungang has already got to become the import role in developing Jiangsu coastal areas and bring along the Landbridge regional coordinating development when Lianyungang port has been given a new role and mission in the Development Planning of Jiangsu Coastal Districts.
　　
   Yu Xiangyang: Lianyungang port was opened in 1933, after 76 years’ construction, especially the construction during these 30 years, it has been transferred from a little fishing village to a national port, a regional central port, the center of the Jiangsu coastal ports group, the important hinge of the comprehensive transportation system and the important part of the North Wing of the Shanghai International Shipping Center. And it will play a role in promoting the development in the Jiangsu coastal districts and it has already got the elementary qualifications in hauling Landbridge regional coordinating development.
　　Firstly, the condition for cargo distribution and transportation is getting better and better. Railway, road and waterway, these 3 modes are competing and growing together. 9 national trains to Zhengzhou, Xi’an, Chengdu, Atasu-Alashankou, Xi’ning, Houma, Wuxi, Fuyang and Bengbu,2 international trains to Alma Ata and Moscow, the Sea-rail combined transport business in Lianyungang is leading in China. Since signing the collaboration agreement with Estonia, the new Euraisan Continental Bridge will reach Tallinn port and then have the chances to have business connection with the North Europe market.
      The trunk line electrification of East Long Hai Line and the completing of reconstruction of the 1050 station make the ability enhanced extremely. The 3 appropriative channels (South,East,North) under construction will all connect to Lian-Huo, Tong-San, Ning-Lian, Yan-Lian, Lin-Lian highways and No.204 national highway and No.242,236 provincial highway. The channels to connect with Tongyu canal, Jinghang canal and Yangtze River will be built up and open until 2010. The day to realize the combined transport through sea, rivers and Yangtze River will come soon.

       Secondly, the level of the channels becomes higher constantly. Last year we have built up the 150-thousand-ton channel and 200-thousand-ton full loaded ore bulk vessel and container ships over 10-thousand-TEU which is the largest in the world can pass by. Now the project to build the 300-thousand-ton channel started 1st August this year and will be completed until 2013. Then every large vessel can safely come to and leave Lianyungang port.

      Thirdly, the berths are becoming large-scale. Recently, the number of over 10-thousand-ton berths which have been put into use and almost built up is 44 and the designed capacity is more than 85,000,000 tons. The bulk terminal’s biggest berthing capacity is 300,000 tons and the biggest container ship can berth in the container terminal in Lianyungang port. With the acceleration of construction of the berths for alumina, bulk fertilizer and liquid chemicals and the cofferdam closure of the 16 container berths in Dadi operation area started in succession, the estimated designed capacity will reach 100 million tons, including 4 million TEU.

       Fourthly, the warehousing is becoming more and more functional. 2 million square meter space for railway handling; 220 thousand square meters Bonded Warehouse; 450 thousand square meters logistics zone, which owns three railways, A one-time loading and unloading train of 100 Compartment s.
Zhongyuntai International Logistics Zone is being constructed, which is 220 thousand square meters. It functions as warehousing, River- Sea transportation, Port processing , Urban distribution , Multimodal distribution , trading exhibition, comprehensive service and so on. The construction of 1.32 square kilometers Lianyungang Boned Area in logistics zone has been approved, which will be running in the first half of 2010, What’s more, the application for adding bonded logistics to Export-Import Processing Zones is undergoing.

        Fifthly, the line is becoming more and more. There are 44 lines including the west coast of America line, America-Canada line, Europe line, Southeast Asia, Mid-east. Monthly traffic is near 300. There are 9 general cargo lines, including Korea, America, Southeast Asia, English, Mediterranean, Mid-east, South America, North Africa, Red sea, which covers all continents. The direct line to Renchuanhepingzhe of South Korea, is the first “one port to line” between China and Korea. It is becoming an important bridge for the trading.

     Sixthly, we have more and more yards and stations. Now Xining, Houma, Huai’an, Luoyang are running. Yancheng, Shuqian, Yinchuan, Xuzhou, Xi’an are developing. Baoji and Lanzhou are being planned. Now the supplying chain bass in port is generally forming, stretching the hinter land. Door to Door service comes to truth.

      Seventhly, the service is getting better and better. Now the distributing center can deliver Alumina, Fertilizer, Plywood, and so on. The delivering center of coal, sand and international food logistics is planning. The port authority has signed a document for door to door service policy with the cities along the Gansu-Qinghai and Lanzhou-Xinjiang line. It has become a testing port for the container service of combining Import-export and platform of E-port, automatically Terminal Gate and so on. Thanks to the best service, Lianyungang has been awarded as Five Star port for four times. Meanwhile, it is the only No Claims port in greater China. Meanwhile, Lianyungang has already successfully listed, opening the door of Capital market. The capital cooperation is strengthening. The multiple investing and developing format is forming, which turn to be more comprehensive.

New Patten, New Start
Journalist: Lianyungang has developing really fast these years. So do you have a vision for further developing?
Yu Xiangyang: Generally speaking, we hope to become stronger and stronger. Due to the increasing number of Ships, demand of hinterland, there will be deeper channel, professional terminals, and equipment. So far the 300 thousand T level channel, ores and crude terminal and the six generation container terminal is under planning and construction.
How to evaluate the importance of a port? It is the scale of production. Unless we have a more details service, expanded our role, arranging more traffic, getting more support railway, perfect the production system, we can not develop. We have to finish our goal of 110 million T and 3 million containers. We aim at becoming first class port.
In the past, the success of port mainly depends on outside. Now, we should count on all benefiting factors. We should bring more and more capital, techniques, projects, advanced managing and so on to make Lianyungang as a real Cornucopia.
As we all know that we cannot earn a lot if we only depend on traditional business. We should count on the advantage of port and terminal to develop modern logistics, constructing industry. Hence, we can make more profits.
The development of port is a big project. We need to cooperate with the whole society. We will try our best to develop a peaceful, environment good, civilized port. Moreover, we will supply a guarantee jobs for all concerning people. We will try to build a air of “all hearts as one, all strength to be concentrated, as a strong vehicle for developing.