Guangzhou says Nansha port will boost HK shipping role

It hopes Nansha's location in the middle of the Pearl River Delta will make it a natural transport and shipping centre. Since drawing up the plan, Guangzhou has spent 10 billion yuan a year to realise it.

Nansha development zone authorities yesterday said the construction of four 50,000-tonne multi-function berths had been completed and would be in service by September. Plans also have begun for another four 100,000-tonne container terminals this year, with a 2.6 billion yuan investment.

Officials expect Nansha port to have 10 to 12 modern berths by 2010, with more than 1.5 million teu (20-ft equivalent units) in capacity a year.

Many observers in Hong Kong and Shenzhen fear the Nansha project will intensify competition among ports in the region.

Hong Kong is the world's No1 deep-water port while Shenzhen port ranks fourth. The two have been locked in fierce competition in recent years.

The central government is concerned about duplicate port developments. Minister of Communications Zhang Chunxian warned last month about overinvestment on ports, saying state authorities would co-ordinate infrastructure developments.

But Guangzhou is determined to push ahead with its Nansha project. Vice-Mayor Chen Mingde said the move was the linchpin of development strategy.

Xiong Wenhui, director-general of the Nansha Development Zone Economic Development Bureau, dismissed the concerns. He said the Nansha port would never threaten Hong Kong's position.

'Hong Kong will always be the leading international shipping centre in the Pearl River Delta. Shenzhen, Guangzhou and other ports will mainly function as assistance and supplement [other ports' business],' said Mr Xiong. He said the fast growth in foreign and domestic trade in the region meant existing facilities would be exhausted soon.

'Experts estimate that the number of containers in the Pearl River Delta will grow from 19.4 million teu in 2005 to 38 million teu in 2020. The abundant cargo trade will ensure the development of a port cluster in the region,' said Mr Xiong, adding that Beijing backed the Nansha project.

'By 2005, the added value of the logistics industry in Guangdong will reach 270 billion yuan, making up 15.6 per cent of our economy. The industry will grow 11 per cent by average in the next 10 years.

'As the world manufacturing base emerges in the Pearl River Delta, the logistics industry will have even more opportunities.'

Mr Xiong said Nansha would also focus on developing heavy industry. Several foreign multinationals, mostly Japanese, have pledged billions of yuan to develop car-making, shipbuilding, iron, steel and logistics industries. Guangzhou has teamed up with China Ship Industry Group to build a modern shipbuilding base. The project, with 4.5 billion yuan invested, will turn Nansha into one of the three biggest shipbuilding centres on the mainland on its completion by 2007, said Mr Xiong.

Japanese carmaker Toyota has invested 2.2 billion yuan in Nansha last November. Another Japanese company, JFE Steel, signed a joint venture with Guangzhou Iron and Steel Enterprise last September. Work has started on a 400,000-tonne steel plate plant, with a 1.4 billion yuan investment.

'These industries need a lot of oil, coal, iron ore and other raw materials. The Nansha port will be used to handle the shipping of these materials,' Mr Xiong said.

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