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Port group speeds up expansion

By Zheng Caixiong (chinadaily.com.cn) Updated: 2015-10-21 15:58

Shenzhen Yantian Port Group Co Ltd is speeding up expansion co-operation with overseas counterparts.

"The company signed a letter of intent for framework co-operation with relevant departments in Indonesia on August 30," Yi Deyong, senior manager of the company's planning and development department, told China Daily.

According to the letter, the company will construct an industrial development zone in the Southeast Asian country in coming years.

Yi did not reveal further details of the project.

Meanwhile, senior executives paid study visits to Malaysia and Germany earlier this year to seek investment opportunities or further expansion of co-operation with the two countries in ports in coming months.

Yi refused to confirm whether or not the group is seeking to purchase offshore ports before final contracts have been agreed.

Peng Hongbo, board secretary of the company, said Yantian Port seeks to expand its investment abroad while investing in ports in Chinese mainland has become increasingly competitive.

"Yantian Port will spare no effort to develop its foreign business through expansion of Sino-foreign co-operation," he added.

To this end, Yantian port, situated in the eastern part of the Pearl River, is constructing three new piers in the western part of the port. The piers, which can each handle at least 70,000-ton vessels, will further increase the port's annual throughput after they are put into service in the coming months.

Meanwhile the group is waiting for approval for construction of another 14 new piers in the eastern part of the port. They include seven piers which can handle at least 100,000-vessels, one that can handle at least 150,000-ton vessels and six which can deal with vessels of at least 200,000 tons.

The port now has 18 piers in operation, including six which can handle at least 100,000-ton vessels and 12 that can deal with the vessels of at least 70,000 tons.

Yi forecast Yantian's throughput will enjoy an annual growth of between 5 and 6 percent during coming years.

"China's exports might reduce in the future due to the fluctuation of the renminbi exchange rate and the world market slump, but the mainland will see a steady increase in imports," Yi said.

The company has now opened 31 international routes to North America and Europe, 24 to Asia, seven to South America and two to Africa.

According to official statistics, the throughput of Yantian has reached 9.99 million TEUs in the first 9 months, up year-on-year 5.18 percent. Throughput is estimated to come to more than 14 million TEUs for the entire year.

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