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Shanghai Changxing shipyard Phase 1 ready in two weeks

PostTime:2007-12-17 08:12:34 View:2098

THE China National Development and Reform Commission (NDRC) has announced that of the construction of three major domestic shipyards is going smoothly and Phase 1 of the Shanghai Changxing Shipyard should be completed in two weeks.According Xinhua, the three shipyards are in Qingdao on Bohai Bay, in Shanghai and Guangzhou. The Qingdao Haixiwan Shipyard will have an annual capacity of 2.04 million deadweight tons. The Guangzhou Longxue Shipyard will be able to produce 2.12 million deadweight tons a year with its first phase facilities. First phase of the Shanghai Changxing Shipyard has a capacity of 4.5 million deadweight tons and the second phase has a capacity of 3.5 million deadweight tons.The NDRC report said China's ship production volume had grown from 3.67 million deadweight tons in 1998 to 14.5 million deadweight tons in 2006 but the domestic industry still relied on imports of crucial ship equipment. Locally made ships account for only 40 per cent and, only 20 per cent of the Chinese containerships afloat.

Shanghai listing propels CSCL into shipping firms' No 3 spot

PostTime:2007-12-14 08:24:53 View:1436

CHINA Shipping Container Lines became the world's third largest publicly-listed shipping company yesterday following its A shares debut in Shanghai, which valued the company at $18bn.The impressive performance in China, however, failed to prevent the company's H shares plummeting on the Hong Kong Exchange after Asia's richest man Li Ka-shing reduced his stakes in both carriers on Tuesday.CSCL's Yuan-denominated A shares rocketed 75% on its first trading day to Yuan11.57 apiece, boosting the market value of the line to $18bn.This immediately sent CSCL to the third place on the world listed shipping line league table following global leader AP Moller-Maersk, which has a market capital of $49bn, and domestic rival China Cosco, which is valued at $47bn.Yesterday's closing price in Shanghai gives the A shares a 119% premium against CSCL's Hong Kong-listed H shares. This is well above the premium of other Chinese shipping stocks, such as China Cosco and China Shipping Development, that have a joint listing in both Hong Kong and Shanghai.Quam senior research analyst Edward Wong said: "The difference is reasonable given that there are not as many investment choices available in mainland China as there are in Hong Kong."The stellar performance of the A shares did nothing to buoy CSCL's Hong Kong-listed H shares, which lost 12.5% to close at HK$5.6 each. This was just a day after Mr Li sold 250m shares of the company through his flagship company Cheung Kong Holdings.Mr Wong blamed the poor performance of the H shares partly on Cheung Kong's share sale. He said Cheung Kong had increased the supply of CSCL shares in the market, depressing the price."More importantly, the current stock price of the line's H shares already reflects positive factors such as the rebound in freight rate," he added. CSCL's H shares have gained 356% over the past year.The Shanghai share offer raised Yuan15.47bn. CSCL said Yuan8.8bn of the proceeds would be spent financing the construction of 16 boxships. A further Yuan2bn is earmarked for the acquisition of assets related to its container shipping, ports and container manufacturing operations. The remained will be used for general working capital and loan repayments.CSCL, the world's seventh largest shipping line, has forecast that net profit would triple to Yuan3.12bn this year. Its 2006 net profit was Yuan859m, much lower than that of Yuan3.58bn in 2005.

11th Anniversary of Shanghai Shipping Exchange

PostTime:2007-12-12 08:32:07 View:1423

 On November 30th, Shanghai Shipping Exchange (SSE in short) welcomes her 11th anniversary and held membership conference 2007, which is attended by the leaders of the Ministry of Communications and the relevant competent authorities in Shanghai and the representatives of member entities. Xu Peixing, Director of Shanghai Municipal Port Administration pointed out in his speech that SSE is the symbolic facility in construction of Shanghai International Shipping Center and plays an important role in function development of Shanghai Port. During the past eleven years, SSE has made great achievements in establishment of shipping information research center, shipping credit evaluation system, ship trading and verification center, port shipping service platform and shipping human resource center.Zhang Shouguo, Vice Director of Water Transport Department of the Ministry of Communications also sang high praise for SSE’s contribution in his speech: we hope that SSE could play more roles in future shipping circle: to be the representative of membership enterprises and the executor of governmental policies; to be the most specialized and authoritative consulting party and the referee of market fair play; to be the observer of shipping trend both at home and abroad and aim at internationally influential price-decider. SSE President Zhang Ye showed his sincere gratitude not only to the directions and help of superior leaders but also to the support and trust by membership enterprises. He also made general conclusion of SSE work in 2007.

New Pudong-like industrial zone taking shape

PostTime:2007-12-06 09:02:38 View:1300

The Shanghai Port-based Lingang Industrial Zone, managed by the Shanghai Lingang Economic Development (Group), is expected to promote the city's competitiveness and further boost its economic development.The zone is regarded as the outcome of strategies implemented by the Shanghai municipal government.Covering an area of 200 sq km, the zone is regarded as one of Shanghai' important equipment manufacturing development bases for the 11th Five-Year Plan (2006-10).The zone is expected to become another Pudong New Area, an economic growth engine in the metropolis.Located in the newly-established Lingang New City, the zone is 25 km away from Pudong International Airport to the north and 32 km away from the Yangshan Deepwater Port in the south, connected by the Donghai Bridge.It features easy access to five modes of transportation including ocean, air, river, highway and railway from the southeastern tip of Shanghai.The zone is home to the Luchaogang Railway Container Terminal, the first such terminal to be completed and operated in Shanghai, while the Ping'an Railway Yard is near the zone.The terminal and the yard connect the zone to national railway networks as well as other railway container terminals, which is one of the advantages of the area.The zone expects to build an inland terminal depot covering 1.2 sq km and connected by the Dazhi River and inland rivers in the Yangtze River Delta. The depot could handle barges with 1,000-tonnage loading capacity.Beginning in 2003 and expected to be completed by the end of this year, the first-phase project covers an area of 57 sq km, including a 36 sq km equipment manufacturing park and a 21 sq km logistic park (including land area of the Yangshan Bonded Port).With a total investment of more than US$.05 billion, the zone has maintained a good growth momentum for further development.In view of the national strategy of revitalizing equipment manufacturing bases, Shanghai Lingang Economic Development (Group) Co Ltd has made great efforts to push the development of the port-based zone.The zone's achievements to date include the settling of equipment industries in the area, enhancing independent innovation and improvement of relevant facilities.As planned, five equipment manufacturing bases are being built in the zone, which include an entire car and spare parts manufacturing base, a key large ship spare parts production base, as well as bases to manufacture equipment for power generation and transmission, ocean engineering, and harbor machinery and logistics.The government will provide independent innovation projects with more support in site selection, land and related services, so as to encourage the ability for independent innovation, creating a better investment environment for the companies as well as their personnel.The zone is focusing on seven industry projects in accordance with the requirements of the central government and improving its capacity of developing more projects such as aircraft and aircraft engine, rail transit and airborne equipment manufacturing.The zone's structural framework is that of an equipment manufacturing base, which includes the manufacture of automobiles and spare parts, power generator and transmission equipment, and ocean engineering equipment, all of which point toward the zone's independent innovative ability.Efforts are on to upgrade infrastructure and supporting facilities, as well as logistic, industrial and residential facilities.In addition, Lingang has logistics facilities immediately available for lease and available land for new investments from companies in the modern equipment industry.

Birkart Globistics opens staff training centre in Shanghai

PostTime:2007-12-06 08:45:59 View:1087

BIRKART Globistics air + ocean, a business unit Thiel Logistik AG, has announced the opening of a new, dedicated staff training centre in Shanghai to train the company's 500 Chinese employees.Birkart Globistics staff from all over China will attend, not only for basic logistics training, but also for instruction in management, sales, marketing and quality control. The centre will also provide English lessons and classes on "best-practice customer care", a company statement said.The company hopes personnel attending will come away with a comprehensive understanding of the entire workings of Birkart Globistic's local and global freight forwarding operations as well as a practical knowledge, which can be applied at work.The opening of the new facility not only coincides with the company's 135th anniversary and 35th anniversary in Asia, but is also intended to make up for the skill shortage in China.James Kilpatrick, managing director Far East, said he expects Birkart Globistics' advantage will be increasingly reliant on having a talented, committed workforce. "We were one of the first companies to achieve an A-licence, and our staff turnover rate is well below the industry average at five per cent per annum, whilst the majority of our management has worked for the company over 20 years.Birkart Globistics air + ocean, headquartered in Aschaffenburg, Germany, is present on all continents at 200 locations, including 94 of its own branches.

Shanghai's ZPMC develops automated terminal de/stuffing system

PostTime:2007-12-05 08:14:46 View:2400

WORLD'S leading crane manufacturer Shanghai Zhenhua Port Machinery Co, Ltd (ZPMC) has successfully developed a fully automated container terminal stuffing and de-stuffing system.The operation of the new systems was recently demonstrated to experts from major domestic ports, including Dalian, Tianjin and Qingdao, at ZPMC's base at Shanghai's Changxing Island. More experts from over 60 countries around the world will watch a demonstration later this month Xinhua reported.ZPMC president Guan Tongxian said the system can raise the current container handling efficiency by at least 50 per cent and the stacking yard's capacity by 25 per cent with lower operating costs and less pollution.The new system uses a steel track which is parallel to the quay line with a crane on its upper part and a flat car on the lower part. All facilities are controlled via central control booth. No workers are needed for loading and unloading.Compared to the foreign automated terminal system, which uses global positioning system (GPS), ZPMC's new product is more accurate in positioning, faster and more convenient, said Xinhua.

China Shipping Group to sell stake in Yangshan Logistics Park to CSCL

PostTime:2007-12-05 08:09:47 View:2415

CHINA Shipping Group plans to sell its 25 per cent stake in the 20-hectare logistics park at Shanghai's Yangshan port area to its subsidiary China Shipping Container Lines (CSCL) by July, said CSCL president Li Shaode.CSCL currently holds 50 per cent of the logistics park. The acquisition will raise its stake to 75 per cent. China Shipping Logistics will hold the remaining 25 per cent, according to Xinhua.China Shipping Group plans to inject the best terminal assets into CSCL in the shortest time possible, said Mr Li.China Shipping Terminal Development recently signed a deal to purchase A 20 per cent stake in a terminal in southeast China's Fujian province, Mr Li said. Earlier in August, China Shipping Terminal Development purchased a 30 per cent stake in a terminal from a North American carrier. China Shipping has also bought stake in Egypt's Port of Damietta.China Shipping operates 16 terminals on mainland China, with a capacity of 15 million TEU. The carrier plans to raise the number of berths it operates by 70 per cent to 60, having an increase in capacity of 95 per cent to 36 million TEU from its present 18.5 million TEU.

Shanghai volume tops all China, but Ningbo-Zhoushan nips at its heels

PostTime:2007-11-28 09:23:07 View:1686

SHANGHAI port again took the lead in cargo throughput in China in the first 10 months of 2007 by handling 407 million tons, Xinhua reported.Ningbo-Zhoushan port came second by handling 394 million tons during the 10 months, the report said.Ports in China altogether handled 4.3 billion tons in the first 10 months and 440 million tons in October alone, the report said.Ningbo-Zhoushan port handled the most cargo volume in October with 41.34 million tons, which was followed by Shanghai 40.8 million tons, the report added.

DHL Express to open North Asia hub in Shanghai

PostTime:2007-11-27 13:56:46 View:1766

DHL Express said today it will establish a $175 million North Asia Hub at the Shanghai Pudong International Airport as part of its "hubs and spokes" regional air network strategy.The new 55,000-square-meter facility will be equipped with an automated sorting system that will be able to sort conveyable shipments up to 20,000 parcels and 20,000 documents per hour. It will also include a quality control center to monitor all air and ground shipments and act as the nerve center for crisis management.A spokesman for Deutsche Post World Net, DHL's German parent company, told Shippers' NewsWire that the hub should be operational from the second half of 2010."The Shanghai hub will strengthen our regional as well as global network, enabling DHL to continuously meet and exceed our customers' expectations towards transit times and handling capabilities. The development of a new DHL Express North Asia Hub in Shanghai is also proof of our strong commitment and confidence in this dynamic region, said John Mullen, chief executive officer of DHL Express.DHL runs more than 500 commercial and dedicated flights per week in and out of China through four major gateways in Beijing, Guangzhou, Shanghai and Shenzen.

Shanghai Port to raise container tariffs

PostTime:2007-11-22 15:26:12 View:1972

Shanghai International Port Group will raise container tariffs at its ports from the beginning of next year which should boost annual revenues by US$119 million. The fees at Waigaoqiao port will be increased by 10% to $74 per TEU (a standard container), while those at Yangshan port will rise 21%to $69 per TEU. Citigroup estimates the price rises will lift the 2008 profit of China Merchants by $26.5 million. By that time, analysts believe Shanghai will be the busiest container port in the world, price rises not withstanding. To do that it will have to pass Hong Kong and the current leader, Singapore. Whether the increase in pricing will affect the rise and rise of Shanghai International Port has yet to be shown.

Tomorrow's world

PostTime:2007-11-22 10:07:49 View:2372

Coscon managing director Dr Sun Jia Kang spoke to Martin Osborne recently about developments in China's shipping regulations, trade performance and infrastructure.Coscon, the world's sixth-largest container line on the basis of TEU slots deployed, is to benefit from the purchase of 4 x 10,000 TEU and 8 x 5,100 vessels to meet its ambitious expansion plans.The company forms part of the Hong Konglisted China Cosco Holdings' (CCH) group, which recently raised about USD2 billion from the sale of 1.5 billion A shares on the Shanghai Stock Exchange. This followed CCH's sale of 20% of its H shares in the Hong Kong Stock Exchange last year and its recent acquisition of a 51% stake in Cosco Logistics from Cosco.Once again these moves illustrate the expansion motives of the group's senior management, particularly in the liner shipping and freight transport logistics arena.Coscon Shanghai managing director Dr Sun Jia Kang recently spoke to CI about trade growth shaping the company's future plans, the government's move to tighten controls on shipping and the ongoing, and much needed, development of the country's infrastructure.The tightening of international shipping regulations by the Ministry of Communications (MOC) was one area highlighted by Sun. In recent months the MOC has: acted on the validation of NVOCC licences. There are estimated to be over 100 companies trading without proper authorisation investigated alleged illegal cabotage operations by some international carriers taken action under 'Decree No 10' and fined two freight conferences for imposing terminal handling charges (THCs). Members of the Informal Red Sea Agreement and the Informal South Asia Agreement were fined a total of CNY1.35 million (USD177, 000) for implementing a higher THC at south China ports compared to the rest of the country The Coscon executive said: 'The regulatory regime is similar to that imposed in the US because it encourages lines to work independently. It is not so encouraging of conferences or sub-organisations.'This is good for shippers and consignees as it protects their interests. If some organisations make decisions that only benefit themselves, it's not good in the long run.'Sun continued: 'I think it is a good thing that the Chinese government is concerned about the interests of all sides.'On the conference fines, he told CI: 'In my opinion, any increase in the THC should be for the whole coast of China, not only one area.'Shipper groups in southern China successfully argued that the increase would jeopardise their competitiveness with manufacturers along the Yangtze river delta.Unlike Europe, Asia has relatively underdeveloped competition policies, which some consider are susceptible to exploitation by liner shipping conferences and discussion agreements.On August 30, therefore, China passed an anti-trust law which shippers hoped would outlaw liner conferences in the country. The act is scheduled to become law in a year's time.Referring to developments on infrastructure within China, Sun explained: 'As you are aware, China is vast, so, logistically, there are different solutions depending on the region.'For example, for Shanghai, barge operations are very important because of the Yangtze river. Shenzhen, in the south, also relies on barges' in terms of reach as well as being an economical form of transport.'He continued: 'But for other areas, such as the north - Tianjin and Dalian - which do not have the infrastructure for barge transport, there are only two alternatives: rail or road.'Our study revealed that for distances over 500km, rail is better than road, as it's cheaper.However, he suggested that the expanding highway system in China was pushing the break up to 700km. The MOC, for instance, has scheduled building another 5,000km of expressways by the end of 2007. This is about the same as that completed in 2006.Moreover, completion of the national highway trunk system, which comprises five northsouth and seven east-west highways, with a total length of 35,000km, is also scheduled for the end of the year.China is reported to have around 45,000km of expressway, second only to the US which had 90,000km in 2005. According to the government's expressway plan, China will have 85,000km of expressways by 2020, with an estimated CNY2 trillion (USD241.9 billion) raised from overseas and private investors for road development.Sun noted that developments in road transport since 2002 have had a marked affect on competition and profitability. 'In China, we now have Cosco Logistics, Maersk liner division and Maersk Logistics and OOCL Liner and Logistics.'He highlighted how his own company's logistics group had expanded. Formed in 2002, the logistics arm of CCH has eight regional offices and operates with 800 of its own trucks and approximately 200,000 m 2of warehousing space. The regional offices are located in Dalian, Beijing, Qingdao, Shanghai, Ningbo, Xiamen, Guangzhou and Wuhan.'Much has changed over the past three years', said Sun. 'There has been a sharp increase in transport providers, so almost all the land transportation companies have incurred losses or just break even. They cannot make money.'It is also very difficult because the MOC controls the pricing tariff. For example, 1x20ft container would only be charged CNY9 per km.Therefore, a journey of 100km would incur a charge of only CNY900 - that's less than USD120 per container.'Sun also described the landscape regarding transport provision in China: 'Local shippers prefer to use their own trucks and/or hauliers as third-party logistics is not developed in China.''Traditionally, shippers have made their own arrangements although this is changing.Multinationals that have set up in China regularly outsource local transport and distribution activities to third parties' Sun estimated that about 20% of the market was now controlled by multinational logistics providers.Coscon has invested in chartering barges to benefit from the growth of container traffic along the Yangtze river, and forecasts over 20% growth in container traffic a year.The average throughput of China's trunkline ports has increased by 27% over the past three years, and a report just published by the Yangtze River Ports Association now forecasts a 32% increase in container traffic in 2007. In the first six months of this year, a 43% jump in container traffic volumes was recorded.While barges have a promising future, Sun believes that rail will play a much larger role. He sees the setting up of the new joint-venture company by the Ministry of Rail (MOR) - China United International Railway Container Corporation, which will create 18 intermodal/ logistics railheads throughout China - as being highly significant (see 'All aboard', CI September 2007 pp 67-69).The rail network will have increased from around 70,000km today to approximately 100,000km by 2020.Meanwhile, it has been estimated that the growth in both domestic and international container traffic moved by rail will accelerate and average 16% a year from 2008 to 2020. This would result in a total volume of 16 million TEU by 2020.It is considered that the development of the country's rail network will lead to a significant shift towards intermodalism. Currently, only around 1% of containers are delivered inland by rail, according to a recent report published by UK-based Drewry Shipping Consultants.Sun spoke enthusiastically about Shanghai International Port Group's (SIPG) Yangshan deepwater facility and of its handling of Coscon's business.'From a productivity aspect, these are the best terminals in the world. They recently produced a new world record of 690 container moves an hour for working one vessel, which is unbelievable.'Secondly, the location is very convenient for barges and small vessels. So in the future, I think that construction at Yangshan will speed up because the old part of the port in Waigaoqiao is full and congested.'This year SIPG aims to complete Phase III A, and next year Phase III B. These developments are in the east port area of Xiao Yang Shan Island and will comprise seven berths and an annual handling capacity of five million TEU.Sun said there were plans to build a second 32.5km bridge linking the island to the mainland.'By 2010, Shanghai's total throughput should be achieving 35 million TEU, while this year, it is estimated to exceed 26 million TEU, ' he said.While Sun admitted that the distance from Yangshan meant increased transit costs, he stressed that as far as Coscon was concerned, this had largely been offset by lower handling charges.Although there were improvements in connectivity and manufacturers in the south of Shanghai now benefited from closer proximity to Yangshan, factories to the north and west had incurred higher transport costs as the distance from central Shanghai to Yangshan was approximately 50km further than to Waigaoqiao.However, Sun forecast that manufacturers would move their sites closer to the port to reduce costs.Coscon recently announced mixed halfyear results, despite China's tremendous growth. Revenue increased by 17.7% compared to the same period last year, up to CNY20.9 (USD2.7) billion, due to a 14% increase in liftings to almost 2.8 million TEU. But increased costs, up by about 18%, mainly due to increased US inland transport and transhipment charges, hit profits.Earnings before interest and tax (EBIT) fell by 16.4% to CNY586 (USD76.9) million resulting in a sales return of just below 3% compared to its national rival, China Shipping Container Lines, which announced a much improved return on sales of 9 % over the same period.However, the general outlook remains bright and Sun has good reason to be upbeat about Coscon's prospects.Coscon's intra-Asia throughputs fell by 2.4% to 741,872 TEU in the first six months, although the market is forecast to grow at over 10% this year. However, its Chinese domestic cargo grew 42.6% up to 536,155 TEU over the same period.Sun felt that the intra-Asia market would continue to grow strongly. 'The reason for this is that new factories will be encouraging more business because more raw materials are being imported into China for re-export throughout the region.'Ten years ago, investors came from Taiwan and now Japan is the number one.'He elaborated: 'More products will be reexported to Japan to meet its consumer needs, whereas Taiwan is a small island and the population is small, so not all manufactured goods are required back into the country. But the problem is that [intra-Asia] rates are still low.'Regarding the booming Asia-Europe trade, which has absorbed much of the industry's additional vessel capacity that has come on stream this year, Sun said: 'I think that we have seen growth on this trade for the following reasons.First, because of increased demand from EU countries, principally, attributable to the strong euro. Second, the increased purchasing power of eastern European consumers.'Coscon's executive has good reason to be pleased as the company achieved a notable 19.4% increase in its traffic volumes on this tradelane (up to 658,262 TEU in H1) compared with 2006.He said the peak season surcharge implemented from August was very good for carriers while almost the full GRI had been implemented in January, April and July.On the dominant eastbound transpacific trade route which has so far failed to meet market growth expectations this year, Coscon produced a noteworthy 16.3% increase in volume to 712,582TEU.Looking ahead, and with world trade growth in mind, Sun advised that the company will have added two post-panamax 10,000 TEU vessels onto the Asia-Europe trade by the end of the year.He concluded: 'With all the dockyards receiving full orders, lines are entering a ''golden period'' where the world economy is strong and therefore returns for container lines and bulk carriers should be very good'.

Great Expectations

PostTime:2007-11-22 09:53:56 View:2372

With Shanghai soon to be crowned the world's leading container port, Martin Osborne looks at its prospects and the role of its largest terminal operator, the Shanghai International Port Group.The year-on-year double-digit growth in container traffic handled at the port of Shanghai has put its leading container terminal operator, Shanghai International Port Group (SIPG), into the spotlight.Five years ago, Shanghai's total throughput was a mere 8.6 million TEU, compared to Hong Kong's vastly superior 18.6 million TEU.This year, however, Shanghai will handle an estimated 25 million TEU, overtake Hong Kong, and put pressure on Singapore, whose total throughput is projected to exceed 26 million TEU.Hence in 2008, Shanghai is expected to top the box port traffic league with total traffic of 29 million TEU.To date capacity has just about kept pace with the traffic growth. This is in no small measure due to the strategy of SIPG. The company's plan is now focused on having sufficient capacity in place to handle 35 million TEU in 2010.A spokesperson for the port explained: 'The capacity at Shanghai is not big enough.We have five container terminals in Waigaoquiao and a sixth container terminal is under construction. However, 15 terminals will be decommissioned in the upper stream.'In general, we have added one new terminal each year, with phase IV and phase V completed in 2003 and 2004 at Waigaoquiao. Phase V took just 21 months to complete and was a CNY4 billion (USD533 million) joint venture with Hutchison Port Holdings.'Meanwhile, phase IV at Waigaoquiao became operational in September 2006. It is a multifunctional terminal with a quay length of 300m for containers and a 500m ro-ro berth.An additional 700m of quay is under construction.'Accompanying the developments at Waigaoquiao, the port has built an entirely new cargo-handling complex at Yangshan, 35km offshore. 'We opened phase I in 2005, which had an annual design capacity of 2.2 million TEU, and phase II in 2006.'Our construction programme is still running a little bit ahead of demand and we are basing growth at plus 25% average growth per year.'This compares with average growth over the past five years in excess of 28% per annum.The construction of the new container port at Yangshan, is located in Hangzhou Bay, also included the construction of the Donghai Bridge and the development of a harbour city and logistics complex at Luchaogang on the mainland.Yangshan gave Shanghai the deep water (15m) it needed and has significantly raised the profile of SIPG. The terminal also became the first bonded port area in China.It is managed by Shanghai Shendong International Container Terminal (SSICT), a subsidiary of SIPG, which operates phases I and II of the complex.SIPG itself is made up of the Municipal Government of Shanghai, with 44.2% of the shares, China Merchants International Terminals at 26.5%, Shanghai Tongsheng Investment Corporation with 16.8% and Shanghai Stateassets Operation and Shanghai Dasheng Assets Co with less than 1% respectively.In addition to providing stevedoring and terminal management services at Yangshan, the group also runs three barge shuttle services to the cargo-handling facilities in the older port of Shanghai. Currently, about 30% of its throughput comprise traffic that moves up and down the Yangtze River.SIPG has set itself stringent standards to meet service expectations.Its '5-20-25' commitment states that the time for handling a barge is no more than five hours, while the time for handling a container vessel is no more than 20 hours. Meanwhile, the time given for container delivery to/from the stacking yard by an external truck is no more than 25 minutes.Although SIPG initially provided a 'carrot and stick' approach to draw business to Yangshan, industry concerns over the port's distance from Shanghai, and inclement weather (fog) affecting vessel turnaround, have proved groundless.In fact ocean carriers have generally praised cargo-handling performance levels at the complex.Dr Sun Jia Kang, Cosco Shanghai's managing director, explained: 'From a productivity aspect these are the best terminals in the world.They recently produced a new world record of 690 container moves per vessel, per day, which is unbelievable.'According to SIPG, once Yangshan's third phase opens, ocean carriers will be able to choose to come across without the 'carrot-andstick' approach. The fact that moving costs have been subsidised by the operator and carriers engaged in various trades forced to move to the complex, has meant that traffic has grown very quickly. Currently, more than 40 services use phases I and II each week.Last year, Yangshan's throughput exceeded 3 million TEU, a figure sufficient to give it an entry in CI's top 30 containerport league, alone (see CI March 2007).And the development is continuing. The port's third phase development programme is in 'full swing', according to the Shanghai spokesman, 'with completion expected in 2010'.It is scheduled to raise Shanghai's containerhandling capacity up to at least 35 million TEU.Meanwhile, fourth and fifth development phases are planned, these taking Yangshan's container-handling capacity up to 30 berths (in 2012) and 50 berths by 2020. A second 32km bridge is also planned to be built. Unlike the first bridge, this will create feature rail track.The role of rail in Yangshan's development is expected to change once Luchao Harbour Terminal is connected to the country's planned 18-hub intermodal rail service network. This is scheduled for 2010.To put Shanghai's container growth into perspective, the port serves the vast hinterland of the Yangtze River Delta (YRD) and the entire Yangtze river corridor, which extends 1,500knm to Chongqing, In addition, the Jianghan plain and the Sichuan basin are densely populated and have established agricultural and industrial bases, which contribute to the port's trade.Today, imports and exports through Shanghai equate to about a quarter of China's total foreign trade, by value. Meanwhile, its 21.7 million TEU of container traffic handled in 2006 meant it was the world's third largest container port.SIPG has also invested at other facilities in the YRD. Currently, its port operations involve it managing/owing 125 cargo-handling berths with a combined quay length in excess of 20km.In addition, the group has invested in barge services, logistics activities - it owns more than 700 trucks - and warehousing where it manages a total storage space of 293,000m 2. Its barge company, Ji Hai Company, is expanding rapidly, with its river transhipment traffic volumes rising by 42% to 2 million TEU in 2006, This year volumes are expected to increase by 590,000TEU.The company also operates a short-sea operation between Shanghai, Hong Kong and Japan.International aspirations are now part of the group's strategy too, although it is tightlipped about possible investments in this arena.Hence, the YRD is seen as an important part of SIPG's continued growth and profitability. Its aim is to optimise its investments in the area and a number of main feeder ports in places such as Chongqing, Wuhan and Nanjing.SIPG has a 55% share in Wuhan Port Group and a 25% share in the port of Nanjing's Longtan Container Terminal.In all, SIPG has set up more than 10 ventures along the Yangtze River.The company is also keen to help establish Shanghai as a major port and maritime centre for North East Asia and to embark on its own international port expansion programme.SIPG's spokesperson explained: 'It is a priority of ours to make Shanghai a hub port and container transhipment centre for this region, It means building the best infrastructure and having the most efficient terminal operations, while offering both coastal and international transhipment services in a fully integrated system.'In terms of its international expansion, SIPG has just one investment at the current time, that being in the Belgian port, Zeebrugge.Here it has a 40% shareholding in a 900m, 750,000TEU capacity terminal, with APM Terminals.The facility, which opened in the latter half of 2006, has plenty of room for expansion should traffic levels warrant this. Indeed a second phase development programme could extend the berthing line to 1,300m and raise the facility's annual throughput capacity to 2 million TEU.While it is clear that Shanghai will soon be crowned king of the container port traffic league, it is also apparent that SIPG is going to become a more recognised logistics name across the globe.