Page 248 - 2020 White Paper on the Business Environment in China
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0 White Paper on the Business Environment in China
transportation and reduce logistics cost. Nansha is Sri Lankan port of Hambantota and the Pakistani
one step closer to its construction of a multimodal port of Gwadar. Piraeus, the biggest port of Greece,
freight transport system, with its first China- and operated by China’s COSCO Shipping, is now
Europe freight train in the form of highway-railway one of the fastest growing container ports in the
combined transport. Guangzhou-Manzhouli-Russia world (Lv and Wang).
train of China Railway Express left from Nansha
Bonded Port in 2018 (Nansha). China’s cargo throughput at ports grew 6.7
percent to about 6 billion US tons in the first five
The inland waterway of China’s Pearl River freight months of 2019 compared with the same period
volume exceeded 1 billion tons in 2018 and 2019. last year. At the beginning of the same year, the
Through a high-level coordination mechanism, Ministry of Transport expanded the statistical range
Guangdong, Yunnan, Guangxi and Guizhou are from major ports to all ports across the country.
jointly formulating policies and plans to allow Pearl Foreign trade cargo throughput amounted to
River transportation to play a greater role in the almost 2 billion US tons in the January-May period,
development of the GBA. Lu Yaxing, deputy director up 2.3 percent year on year, while domestic trade
of the Guangdong provincial transport department, saw a growth of 9 percent.
said the Pearl River waterway connects southwest
China to Hong Kong and Macao. Guangdong will Meanwhile, container throughput at ports
speed up the construction of major transportation enjoyed a 5.2-percent increase in the period to
channels of the river. With ports in Guangzhou, 104.67 million 20-foot equivalent units. Such
Shenzhen and Zhuhai as the key points, Guangdong growth came amid China’s steadily growing
will vigorously develop river-sea combined waterway freight volume, which saw a 7.8-percent
transport and container transport and promote the year-on-year rise in the first five months of 2019
construction of river-sea and water-rail combined (Xinhua, China Reports Cargo).
transport (Xinhua, Pearl River Inland).
Air Freight
In recent years, Chinese ports have grown very
rapidly. The attraction of Chinese ports comes It is a hard time everywhere for the air freight
from the growth of volume. In 1978, the cargo industry. The effects of the US-China trade war and
throughput of Chinese ports was only 280 million high fuel prices wiped US$7.5 billion off expected
tons while in 2018, China’s ports completed 14.35 airline profits during 2019. Carriers worldwide
billion tons of cargo throughput, with seven ports will collectively generate a profit of US$28 billion,
ranking among the top 10 cargo throughput ports down a fifth on estimates made at the end of last
in the world. In addition, Li Tianbi, safety director year, according to the International Air Transport
of the Chinese Ministry of Transportation, said Association (IATA) forecast, US$2 billion less
the scale of Chinese ports has consistently ranked than 2018 (Lee). Decreases in air shipments can
first in the world for many years. “Over the past herald broader industrial slowdowns, as they did
few years, Chinese ports have done a great job, in 2008, according to Robert Mayer, who studies
leading the world in terms of productivity and cost the cargo business at the Centre for Air Transport
control,” said Tim Smith, chief executive of APM Management at England’s Cranfield University.
Terminals Asia. Calling Chinese ports the active While it is faster than land or ocean freight, air cargo
participants of global ports cooperation, Santiago is also more expensive — and therefore less useful
Mila, president of the International Association of during a recession, according to the IATA. Even as
Ports and Harbours, said he believes China’s new they grapple with US-China tensions, cargo carriers
round of opening-up will continuously invigorate face a host of other concerns that could spell trouble.
the development of global ports. “The 21st Century Britain’s exit from the European Union has pushed
Maritime Silk Road will not only further promote some companies to shift or slow production and
Chinese maritime trade, but also create more port stockpile goods. Economic turbulence in Turkey and
hub cities,” said Mila. Up to the end of 2018, China tensions in Iran have cut into regional trade. Asian
has participated in the construction of 42 ports in 32 carriers say failed harvests in the US have reduced
countries, including the Greek port of Piraeus, the
248
transportation and reduce logistics cost. Nansha is Sri Lankan port of Hambantota and the Pakistani
one step closer to its construction of a multimodal port of Gwadar. Piraeus, the biggest port of Greece,
freight transport system, with its first China- and operated by China’s COSCO Shipping, is now
Europe freight train in the form of highway-railway one of the fastest growing container ports in the
combined transport. Guangzhou-Manzhouli-Russia world (Lv and Wang).
train of China Railway Express left from Nansha
Bonded Port in 2018 (Nansha). China’s cargo throughput at ports grew 6.7
percent to about 6 billion US tons in the first five
The inland waterway of China’s Pearl River freight months of 2019 compared with the same period
volume exceeded 1 billion tons in 2018 and 2019. last year. At the beginning of the same year, the
Through a high-level coordination mechanism, Ministry of Transport expanded the statistical range
Guangdong, Yunnan, Guangxi and Guizhou are from major ports to all ports across the country.
jointly formulating policies and plans to allow Pearl Foreign trade cargo throughput amounted to
River transportation to play a greater role in the almost 2 billion US tons in the January-May period,
development of the GBA. Lu Yaxing, deputy director up 2.3 percent year on year, while domestic trade
of the Guangdong provincial transport department, saw a growth of 9 percent.
said the Pearl River waterway connects southwest
China to Hong Kong and Macao. Guangdong will Meanwhile, container throughput at ports
speed up the construction of major transportation enjoyed a 5.2-percent increase in the period to
channels of the river. With ports in Guangzhou, 104.67 million 20-foot equivalent units. Such
Shenzhen and Zhuhai as the key points, Guangdong growth came amid China’s steadily growing
will vigorously develop river-sea combined waterway freight volume, which saw a 7.8-percent
transport and container transport and promote the year-on-year rise in the first five months of 2019
construction of river-sea and water-rail combined (Xinhua, China Reports Cargo).
transport (Xinhua, Pearl River Inland).
Air Freight
In recent years, Chinese ports have grown very
rapidly. The attraction of Chinese ports comes It is a hard time everywhere for the air freight
from the growth of volume. In 1978, the cargo industry. The effects of the US-China trade war and
throughput of Chinese ports was only 280 million high fuel prices wiped US$7.5 billion off expected
tons while in 2018, China’s ports completed 14.35 airline profits during 2019. Carriers worldwide
billion tons of cargo throughput, with seven ports will collectively generate a profit of US$28 billion,
ranking among the top 10 cargo throughput ports down a fifth on estimates made at the end of last
in the world. In addition, Li Tianbi, safety director year, according to the International Air Transport
of the Chinese Ministry of Transportation, said Association (IATA) forecast, US$2 billion less
the scale of Chinese ports has consistently ranked than 2018 (Lee). Decreases in air shipments can
first in the world for many years. “Over the past herald broader industrial slowdowns, as they did
few years, Chinese ports have done a great job, in 2008, according to Robert Mayer, who studies
leading the world in terms of productivity and cost the cargo business at the Centre for Air Transport
control,” said Tim Smith, chief executive of APM Management at England’s Cranfield University.
Terminals Asia. Calling Chinese ports the active While it is faster than land or ocean freight, air cargo
participants of global ports cooperation, Santiago is also more expensive — and therefore less useful
Mila, president of the International Association of during a recession, according to the IATA. Even as
Ports and Harbours, said he believes China’s new they grapple with US-China tensions, cargo carriers
round of opening-up will continuously invigorate face a host of other concerns that could spell trouble.
the development of global ports. “The 21st Century Britain’s exit from the European Union has pushed
Maritime Silk Road will not only further promote some companies to shift or slow production and
Chinese maritime trade, but also create more port stockpile goods. Economic turbulence in Turkey and
hub cities,” said Mila. Up to the end of 2018, China tensions in Iran have cut into regional trade. Asian
has participated in the construction of 42 ports in 32 carriers say failed harvests in the US have reduced
countries, including the Greek port of Piraeus, the
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