22
Jul
11

China, tonning it.

The inland expansion of China keeps shining through. It’s no more evident than in the shipping and container industry. Week after week, we are seeing reports of increased capacity these ports are handling and in the number of businesses that are picking up and moving in to pick up cheaper labor.

China

Container and Shipping Growth

A few weeks ago Chinese ports reported growth of 13% for the first 5 months of the year, handling 63.8 million TEU (twenty-foot equivalent units). Shanghai alone was up 11.4%. cumulative coastal ports were up 12.5%  and river ports showed increases of 18.3%.

Shanghai International Port Group (SIPG) chairman Chen Xuyuan said in June that Shanghai’s container volume is expected to increase 10 percent per annum over the next five years.

One number we saw that does not surprise us at all was a pretty big drop off of the activity in the Shenzhen port. Even though growth was still positive (1.9%), this slowdown is a direct reflection of the companies that we have talked about over the last couple of weeks that are headed inland up the Yangtze river, which is a good reason you see such a large increase in the handling capacity at river ports (18.3%).

Yesterday, we saw a report on World Cargo news that discussed the current drought that is effecting the Yangtze river and central China . In the post he talks about the need for dredging and a few transport issues that have arisen due to the lower levels of water in the area:

“Deepening the channel should be one of the main priorities, because Beijing’s “Go West” initiative is picking up speed and there is no turning back now.”

Dig it

Ask and you shall receive. Actually, what the author of the quote above is pointing out had already been considered long ago and plans to get the river to the speed of development in the area are well in place. As reported on May 3rd from Dredging Today, a leading global source of information for the dredging community, China has already pledged $USD 2.7 billion for construction that has begun this year and will run to the year 2015.

Looking from the outside in, it looks as if China has everything planned out well in advance.

Source: WorldCargoNews, CargoNewsAsia, DredgingToday

Image: LibCom

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Gain unearned income. Own shipping containers and lease them to us. We contract with companies who need to ship materials.

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