China on the Rise: What You Need to Know
We’ve already gotten lots of great feedback on our new free infographic highlighting the Top 20 Global Freight Ports. (If you haven’t downloaded it already, we encourage you to do so here.) Among the many interesting facts we uncovered, one thing that stands out is that six of the top 10 ports are in China. Of course, that’s not a complete surprise.
With the world’s largest population and its second-largest -- and fastest growing -- economy, China is a powerhouse in both exporting and importing. Add to that its expansive Pacific coastline, and you’ve got a recipe for dominance in the ocean freight economy.
In last week’s blog post, we discussed the many reasons why it’s important for Freight Forwarders to be fully informed about the ports where they currently do business or where they plan to expand. This goes beyond facts and figures. It includes familiarity with culture, history, and economic trends. So we decided to dive a little deeper and provide some further context that can help freight forwarders do business in key Chinese ports.
Here’s what you need to know:
Download your copy of the free Top 20 Global Freight Ports infographic today
Port of Shanghai
Shanghai is one of the oldest continuously active ports in the world, dating back to at least the 6th Century AD. It includes the confluences of the Yangtze River, Huangpu River (which enters the Yangtze River), and Qiantang River. This strategic location allowed it to grow until the rise of the Communist government, which led to a deterioration of its infrastructure. With the implementation of market reforms in 1991, the port began to grow again, and in 2005 it incorporated the Yangshan Port. This allowed Shanghai to overcome shallow-water restrictions and expand to accommodate deep-water activity.
In 2010, Shanghai overtook Singapore as the busiest port in the world (by TEUs) and has since added 10 million TEUs of growth to their handling. In 2017, they’ve been trending at just over 4% handling capacity compared to 2016.
Shanghai itself is one of the fastest-growing cities in the world with a population of more than 23 million. Residents of Shanghai are proud of their city’s reputation as a center of innovation. The local language, Shanghainese is distinct from China’s national language, Mandarin. While many educated business people are fluent in English, local interpreters might be necessary when doing business with non-English speakers.
Port of Shenzhen
Located along the Pearl River Delta In the south of China, the collective ports that make up the Port of Shenzhen combine to make it the second-busiest ocean freight port in China, and third in the world.
The port’s growth was directly influenced by the establishment of the Shenzhen Special Economic Zone in the 1980’s. With forgiving tax rules on businesses within the zone, Shenzhen’s economy erupted, and is a driving force behind Guangdong province’s regular appearance at or near the top of provincial rankings in China by GDP
Shenzhen sits very close to Hong Kong, and its ports are split by Hong Kong’s Kowloon Peninsula into eastern and western ports. If you're in Shenzhen, a trip to Hong Kong is highly recommended. Though Hong Kong is an autonomous territory, for many foreign nationalities, a visa for China will allow you to also visit Hong Kong.
Find out what other global ports made the top 20 list in our free infographic
Ningbo-Zhoushan
The combined ports of Ningbo and Zhoushan are collectively the fourth-busiest port set-up in the world. Located on the east China sea, Ningbo-Zhoushan is near Shanghai, and the port itself is publicly traded on the Shanghai Stock Market (SSE).
Two separate ports -- in Ningbo and Zhoushan -- combined operations in 2006. Ningbo-Zhoushan is a leading provider of intermodal freight service, with its connecting railway services reaching as far as midwest China. Backed by state and government sectors, Ningbo-Zhoushan’s intermodal service continues to expand.
Ningbo and Zhoushan are located in China’s Zhejiang province, a mountainous region of eastern China whose topography lends to a rich diversity in cultures and languages. The Zhejiang province can be easily visited from Shanghai, and travel between Ningbo and Shanghai has been especially expedited with the construction of the Hangzhou Bay Bridge.
Guangzhou
The Port of Guangzhou is one of south China’s busiest ports. Located up the Pearl River Delta from Shenzhen, Guangzhou is a vital intersection of intermodal freight services.
Guangzhou played an important role in China’s economic growth, dating back over 2,000 years, where it was considered the “Silk Road of the Sea” during the Qin dynasty. The combined reach of the port of Guangzhou covers an estimated 400 kilometers of coastline.
Business owners the world over find themselves in Guangzhou for the Canton Fair (also known as the China Import and Export Fair), China’s largest trade fair which last year hosted over 20,000 exhibitors, featured about 60,000 booths, and presented to nearly 200,000 overseas buyers. Goods for the show will often come through Guangzhou. The show is a must-attend for professionals from all sectors of commerce looking to further develop their businesses.
For freight forwarders, learning about China is about more than just fun facts. It’s critical to doing business there. Getting a sense of how a port city works, its history, and its culture can give you the edge when building out your business in some of the largest -- and fastest-growing -- ports in the world. After all, no matter how much you use technology, freight forwarding is still a “people business.” Deals are still done with a handshake and sometimes a personal visit. Knowing about the people with whom you’re working, and the culture they come from, can be as important as cargo capacity and transit times.
Download your free copy of the "Top 20 Global Freight Ports" infographic today.
By: CoLoadX on Oct. 25, 2017, 2:39 p.m.