Grow­ing from strength to strength

China Daily (Canada) - - SHANGHAI - By WANG YING in Shang­hai

wang_y­ing@chi­nadaily.com. cn

Af­ter hold­ing the ti­tle of the world’s busiest con­tainer port for five con­sec­u­tive years, Shang­hai In­ter­na­tional Port Group (SIPG) is now look­ing to be­come greener and more diver­si­fied while strength­en­ing its po­si­tion.

SIPG op­er­ates more than 280 in­ter­na­tional con­tainer ships that travel to 340 ports ev­ery month. Its net prof­its last year was re­ported to be 6.77 bil­lion yuan ($1.06 bil­lion).

On July 13, SIPG an­nounced its plan to ac­quire 79.2 per­cent of stakes in Shang­hai Jin­jiang Ship­ping (Group) for 1.9 bil­lion yuan. Shang­hai Jin­jiang Ship­ping, a con­tainer car­rier spe­cial­iz­ing in short-sea box ship­ping in East Asia, is ex­pected to help strengthen SIPG’s re­lated busi­ness.

“Cur­rently, Shang­hai Hai Hua Ship­ping (HASCO), which is un­der the SIPG, is run­ning short-sea box ship­ping busi­ness, and a con­sol­i­da­tion of this oper­a­tions will come af­ter the deal,” said Fang Huai­jin, vice-pres­i­dent of SIPG.

Fol­low­ing more than five years of restruc­tur­ing, the port group has built its suc­cess around its core con­tainer busi­ness. Last year, Shang­hai Port demon­strated a ca­pac­ity for fu­ture growth, han­dling 35.28 mil­lion TEU (20-foot equiv­a­lent unit) con­tain­ers to ex­ceed its de­signed ca­pac­ity of 28 mil­lion. The or­ga­ni­za­tion’s other busi­nesses in lo­gis­tics ser­vice and port lo­gis­tics are also ex­pand­ing quickly.

“We are now build­ing new yards and ad­just­ing ex­ist­ing ones at the same time to han­dle the de­mand,” said Fang, adding that tech­no­log­i­cal ad­vance­ments have played a vi­tal role in Shang­hai Port’s de­vel­op­ment.

Thirty years ago, it took half a month to han­dle 30,000 tons of cargo. Now, a shore crane needs only an hour to trans­port more than 30 con­tain­ers at SIPG’s Waigao­qiao port, said Fang.

Shang­hai Port has been mak­ing sig­nif­i­cant in­vest­ments in tech­nol­ogy, as ev­i­denced by the 12.8 bil­lion yuan it spent to build a fullyau­to­mated con­tainer ter­mi­nal in Yang­shan port, which will come into op­er­a­tion two years later. Ac­cord­ing to Fang, the new fa­cil­ity will in­crease the an­nual ca­pac­ity of Shang­hai Port to more than 40 mil­lion TEUs.

The au­to­mated ter­mi­nal, the fourth phase of the Yang­shan Port pro­ject, has been de­signed to han­dle 6.3 mil­lion TEUs. Its unique energy con­sump­tion struc­ture should re­sult in zero car­bon diox­ide or other emis­sions while al­low­ing sav­ings of up to 70 per­cent.

On Sept 14, six of the world’s largest port op­er­a­tors — DP World, Hutchi­son Port Hold­ings Lim­ited, APM Ter­mi­nals, PSA In­ter­na­tional, Port of Rot­ter­dam and SIPG — launched the first ever joint in­dus­try ini­tia­tive to pro­mote en­vi­ron­men­tal aware­ness and make a push for sus­tain­abil­ity in the com­mu­ni­ties in which they op­er­ate.

“With Green Port Plan 2020, SIPG are bound to fur­ther con­sol­i­date what we have achieved as a green in­no­va­tor. En­vi­ron­men­tal sus­tain­abil­ity will be jointly safe­guarded as an ini­tia­tive where the port and mar­itime in­dus­tries can mo­bi­lize all their re­sources to pur­sue the ideal green port,” said SIPG’s chair­man Chen Xuyuan.

SIPG is quickly de­vel­op­ing both do­mes­ti­cally and in­ter­na­tion­ally. Ear­lier in April, the Shang­hai-based cor­po­ra­tion won the bid for con­ces­sion of the Bay­port Ter­mi­nal in the port of Haifa in Is­rael for 24 years start­ing 2021.

Fang said that the suc­cess­ful bid will fur­ther en­hance the com­pet­i­tive­ness of SIPG’s global ter­mi­nal op­er­a­tional net­work and play a part in China’s “One Belt and One Road” strat­egy, which aims to boost co­op­er­a­tion in the re­gion and cre­ate new trade routes link­ing Asia, Europe and Africa.

“We hope this pro­ject will bring SIPG profit as well as new de­vel­op­ment op­por­tu­ni­ties in the fu­ture,” said Fang, be­fore adding that restruc­tur­ing would be a key el­e­ment to the en­ter­prise’s sus­tained suc­cess.

PRO­VIDED TO CHINA DAILY

Trans­port tech­nol­ogy such as shore cranes has been cru­cial to SIPG's suc­cess.

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