As Qingdao port transforms itself into a hi-tech, third-generation facility, it has ambitious plans to become the shipping hub of northeast Asia, though it is already the largest dock for iron ore in the world.

According to Chang Dechuan, chairman and president of Qingdao Port (Group) Co Ltd, now the port is growing at its fastest point. Its throughput in the first quarter of this year was more than 75 million tons, a 15 percent increase than the same period of last year. The throughput of the port doubled and tripled 2002, which was 265 million tons and 9.46 million twenty-foot container units (TEUs) in 2007. Thanks to its trade relations with 450 ports in more than 150 countries and regions, the port handle 300,000 tons of iron one yearly. That makes the port the largest in Asia and the third largest for containers in China.

The port’s accumulated throughput includes 180 million tons of crude oil and 192 million tons of iron ore in the past years. 85 percent of its volume in 2007 came through handling coal, crude oil, iron ore, containers and grain. By 2010, handling capacity for crude oil is expected to reach 55 million tons, which will make the port the largest terminals in the world for crude oil, and liquid chemicals as well.

According to the 11th Five Year Plan (2006-10) for Qingdao port, it will further develop at Jiaozhou Bay, Qianwan Port,Aoshan Bay and Dongjiakou. It is trying to become a global modern port by 2010. Plans call for the port to accelerate construction of coal transshipment facilities to reach a capacity of 26 million tons. They also call for the port to become one of the most state-of-the-art ports in the world which uses high technology and comprehensive logistic services.

An investment of 1.4 billion yuan funded construction of five quays in 2007 increases annual capacity by 19.9 million tons; annual import-export cargo from provinces along the Yellow River basin is increasing 20 percent in Shandong ports; twenty of the world’s top shipping companies have regular lines serving Qingdao; More than 100 well-known domestic companies have close cooperation with the port, while seven of the top 500 global companies have established operations there.

In 2003, Qingdao Qianwan Container Terminal Co Ltd, a $887 million joint venture was founded between the port and three partners—Maersk Group and P&O Nedlloyd Ltd, and China Ocean Shipping (Group) Co (COSCO).

Rapid expansion of the port has driven the development of other entities, including customers, quarantine inspection and logistics. The constructing work for the fourth phase of the Qianwan container has been started on September 8, 2007. It will be completed by 2010, when it will have an annual throughput capacity of 210 million tons and 10.6 million TEUs.

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China, hub, port, Qingdao, shipping