Logistics Trends in China
Guojin Liu East Asia Business Manager Antwerp Port Authority
24 March 2015
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The link between Antwerp and China
China is a major trade partner of Port of Antwerp Top 10 countries: maritime traffic Port of Antwerp United States United Kingdom Rusland Turkey China Brazil France Spain Finland Singapore India UAE 0
5.000.000 10.000.000 15.000.000 20.000.000 25.000.000 Tons
3
Maritime traffic between Antwerp and China Main commodities:
12,000,000
10,000,000
Containers Iron & steel Rolling material Non-ferrous ores
8,000,000
6,000,000
4,000,000
2,000,000
0
Antwerp=>China
China=>Antwerp
Total maritime traffic between Antwerp and China 2014 9,4 million tonnes
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Strong relationship with China Port of Antwerp agreements with China: • • • • • • • •
Chongqing Shenzhen, Sisterport Dalian, sisterport Yangzhou Shanghai, sisterport Ningbo Lianyungang Qingdao, sisterport
Port missions to China: focus on North, Central & South China: • • • •
yearly seminars & conferences participation in fairs 1-1 meetings (Port Authorities, Associations, Universities, …)
Port Days and other events for Chinese communities in Belgium and the hinterland of Antwerp • •
yearly Networking opportunities
Strong relationship with China •
Chinese traditions in Antwerp
•
Long-term diplomatic relations
President Xi Jinping, R.M King Philippe of Belgium and Marc Van Peel, president of the Antwerp Port Authority.
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Strong relationship with China • Sponsoring and logistic support of the loan and the Exhibition of the Chinese and European old sailing ship models to China Maritime Museum
The opening ceremony at China Maritime Museum on 4 June, 2012
A visitor enjoys the unique craftmanship of the Chinese old sailing ship model
Investing in the future generation of decision-makers
STUDENTS Dalian Maritime University 2 Maritime awards for best thesis students - support to the education of future maritime talents Lectures at Shanghai Maritime University and Shenzhen University
YOUNG POTENTIALS
SENIOR TALENT
APEC seminares:
APEC seminares:
Exclusive Seminar IT and EDI in Port Business Cold Chain Logistics Breakbulk Cargo
Exclusive Seminar IT and EDI in Port Business Cold Chain Logistics Breakbulk Cargo
Company visits
Company visits Middle Management Events
Collaboration with AMS en UA
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Increase of Chinese investments in Belgian ports
2005 First Chinese investor: Cosco Pacific with 20% share in Antwerp Gateway Terminal
2012 Sinopec takes 50% shares of Vesta Terminal in Antwerp through the mother company of Vesta Terminal 2013 China Merchants takes shares in Terminal Link(CMA CGM) with shares
in Antwerp Gateway Terminal 2014 China Shipping takes 24% shares in APM Terminals in Zeebrugge
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Logistics & maritime sector
Map of China
China’s manufacturers and investment locations
Cargoes generating bases: Move to the west region, in particular Chengdu and Chongqing
Chengdu Chongqing
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Ranking of Ports in Mainland China (2014) Total maritime traffic:
Foreign trade volume:
1. Ningbo-Zhoushan 2. Shanghai 3. Tianjin 4. Tangshan 5.Guangzhou 6. Suzhou 7. Qingdao 8. Rizhao 9. Qinhuangdao 10. Yantai
1. Ningbo-Zhoushan 2. Shanghai 3. Qingdao 4. Tianjin 5. Tangshan 6. Rizhao 7. Shenzhen 8. Suzhou 9. Guangzhou 10. Lianyungang
Container traffic: 1. Shanghai 2. Shenzhen 3. Ningbo-Zhoushan 4. Qingdao 5. Guangzhou 6. Tianjin 7. Haikou 8. Dalian 9. Xiamen 10. Yantai
Bohai Rim
Yangtse River Delta
Pearl River delta
World’s 7/10 busiest container ports are in China
Ro-Ro Ports in Mainland China
In 2014, 1.42 million cars imported, + 19.29, SUV fastest growing. More import to the western region: Chengdu and Chongqing
Coal Receiving Ports in Mainland China
Qinhuangdao Tangshan Yantai Qingdao Lianyungang
Ningbo
Fuzhou
Xiamen
LNG Ports in Mainland China
Transportation Network of China
China’s Railway Network
Rail Container Terminals in Mainland China
Inland navigation & ports in mainland China
China’s Highway Network - evolution of the length of National Trunk Highway System
1989 => 147 km (0 mi) 2015 => 111,950 km (69,560 mi)
3
Logistics trends in China
The trends of logistics in China From common cargo to special cargo -> cool logistics, dangerous goods, heavy and project cargo, ro-ro cargo Cargo centers move inlands and towards western region Business concentration managed by corporations E-commerce involvement More cross-border connections
Gradual liberalization of port operations Flexible customs policies Regulated labour market and increasing labour costs
Integrated port, logistics and industry model More value added services
More automatisation in port and logistic operations
The impact of China on world logistics Trendsetter in shipping and port operation More control in port and logistic operations More influence on international rules and regulations More influence on price setting and decision power
Increased quantity of cargo
New cargo types from and to China New cargo flow directions and destinations due to FDI and trade connections New transportation routes
New infrastructures Elimination of certain routes and ports/logistic hubs Creation of new logistic chains and hubs More international railway transportation
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4
Customs Trends in China
Trends in Chinese customs and cargo inspection National integrated customs administration network Increased international cooperation and system integration Nearly 100% paperless customs One document for customs and quarantine inspection More green lanes and AEOs More customers-oriented attitude More specialization in facilities, equipment and personnel
More open market, less administration burden More transparency, less corruption More free choices of customs clearing
Increased safety and environmental regulations 32
Build-up of Dry Ports – Extended gateways
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The 15 Bonded Zones in China
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5
Main production and export zones in China
Special Economic Zones in China
4 Free Trade Zones (FTZ) in China FTZ Characteristics:
Tianjin
Simplification of administration Negative list, less restricts Currency freedom Attractive customs policy Taxation advantages
Shanghai, 126 km² Fujian Guangdong
6
National and international Investment projects
Chinese investment in ports out of China
Chinese investment opportunities outside China
Brazil-Peru Railway(5000 km, $ 60 million) Songkhla Canal in Thailand Moscow-Beijing High Speed Railway Gwuadar-China pipeline China-Pakistan Railway
40
Chinese investment in the Nicaragua Canal project
Long: 278 km Wide: 230 – 520 m Deep: 27.6 m Investment: $ 50 billion
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The Silk Road Economic Belt and the 21st Century Maritime Silk Road
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Opportunities for Belgian logistic companies
New market (in both senses of destination and cargos)
Cooperation with Chinese companies where Belgian companies have solid networks
Exchange logistics expertise
Cooperation for education and training
Set up of joint ventures
Enlargement of service radius by using the new routes and reaching the new destinations
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Thank you for your attention !