Expert Group Meeting on the Draft Regional Framework for the Development of Dry Ports of International Importance

Development of International Dry Port in China

June 6, 2017

The Role of Dry Ports in The Development of The Part 1 National Transport System in China U

Overview of Current Operations of Dry Ports and CONTENTS Part 2 Plans for Further Development in China N

Policy Measures, Legislation and Solutions to Part 3 Support Dry Port Development in China

Practical Options for Financing Development and

Part 4 Operation of Dry Ports in China

Part 1

The Role of Dry Ports in The Development of The National Transport System  The role of dry port in China

An important component of comprehensive transport system.

Facilitate development of international trade and international logisticsran.

Plays an important role in improving investment environment in the west, central China and northeast China, serving “The Belt and Road” strategy and promoting trade contacts between China and Asian-Pacific region.

Part 2

Overview of Current Operations of Dry Ports and Plans for Further Development Overview of Current Operations of Dry Ports and Plans for Further Development

 Late commencement and rapid development of dry port construction in China

On October 22, 2002, Beijing and Tianjin jointly signed Direct Connection Agreement between Beijing Chaoyang Port and Tianjin Harbor Port.

The Chaoyang Dry Port was the first dry port in China.

Overview of Current Operations of Dry Ports and Plans for Further Development

Table 1 Distribution of Main International Dry Ports of China and Total Export and Import Volume in Location of Dry Ports  Late commencement but rapid development of dry port construction in China

Dry port in China also develops rapidly both in quantity and in scale.

The amount of dry ports in china has reached more than 100. e.g. Tianjin, Qingdao, Dalian, Yingkou, Ningbo, Shenzhen, Xiamen, Lianyungang, etc. No. Seaport Dry Port City No. Seaport Dry Port City

1 Pinggu,Beijing 40 Harbin

2 Shijiazhuang 41 Changchun 3 Zhengzhou 42 Jilin Dalian Seaport 4 Dezhou 43 Tonghua 5 Huinong, Shizuishan 44 Shenyang 6 Baotou 45 Tongliao 7 Taiyuan 46 Yingkou Seaport Shenyang 8 Anyang 47 Shangrao 9 Zhangjiakou 48 Tanying 10 Yinchuan 49 Nanchang 11 Zibo 50 Yiwu 12 Chaoyang，Beijing 51 Shaoxing Tianjing Seaport Ningbo Seaport 13 Hebi 52 Quzhou 14 Huhehaote 53 Jinhua 15 Xingtai 54 Yuyao 16 Chifeng 55 Xiaoshan 17 Handan 56 Xiangyang 18 Bayanzuoer 57 Sanming 19 Hanzhong 58 Nanchang 20 Baoding 59 Ganzhou 21 Jiayuguan 60 Ji’an 22 Erlianhaote 61 Yingtan 23 Dulata，Xinjiang 62 Xiamen Seaport Xinyu 24 Urumqi 63 Dehua 25 Xi’an 64 Nanan 26 Zibo 65 Nanping 27 Luoyang 66 Jinjiang 28 Zhengzhou 67 Longyan 29 Chengdu 68 Kunming 30 Lanzhou 69 Heshan，Jiangmen Qingdao Seaport Guangzhou Seaport 31 Urumqi 70 Guiyang 32 Xi’an 71 Hengyang 33 Taiyuan 72 Changsha 34 Houma 73 Chenzhou 35 Qingzhou 74 Shenzhen Seaport Ji’an 36 Linyi 75 Ganzhou Rizhao Seaport 37 Juxian 76 Nanchang 38 houma 77 Zhanjiang Seaport Yongzhou Lianyungang Seaport 39 Luoyang Overview of Current Operations of Dry Ports and Plans for Further Development

 Formation of four dry port groups in China

East dry port group

Type1: Work with coastal ports.

Type2: Work with frontier ports. China-Euro Railway Express. E.g. Chongqing, Chengdu, Zhengzhou, Wuhan, etc. Overview of Current Operations of Dry Ports and Plans for Further Development

 Construction model of international dry port of China

1. Dry port is built to compete for initiative in source of goods from inland regions : Ningbo Port and Tianjin Port —— Relying on Ningbo Port: Jinhua, Yiwu, Shaoxing, Yuyao and Quzhou. —— Relying on Tianjin Port: Urumchi, Shijiazhuang, Zhengzhou, etc.

2. Dry port is built to develop local economy on land areas: Xi'an dry port and Nanchang dry port. ——Xi’an Dry Port : Cooperate with Qingdao, Tianjin, Lianyungang Ports. ——Nanchang Dry Port: Cooperate with Xiamen, Shenzhen, Ningbo Ports.

3. Dry port is built to meet the needs of development of coastal ports and inland areas Dalian Port, in cooperation with the railway company and the local governments of inland cities, build the dry ports in the northeast: Shenyang, Changchun, Harbin.

Overview of Current Operations of Dry Ports and Plans for Further Development

Dry ports in China

 Scale: 50-500 hm2. Large-scale dry ports ( more than 500 hm2 ) mainly distributed in the western region, e.g. Zhengzhou, Xi’an, Kunming city.

 Function: basic cargo clearance, warehousing function,logistics,few dry ports have value-added servicees function.

Overview of Current Operations of Dry Ports and Plans for Further Development

 Management system of Development of dry port planning, policies international dry port in and regulations of the central government

Central China government General Other ministries and Ministry of Transport Ministry of Commerce Administration of Customs commissions Management system for the

Provincial dry ports in China is governments Municipal government Local composed of the central government

Investment Local government - local and the pattern policy main market operators from Dry port operator top to bottom and mainly Market

participated in by the local Coastal port Local customs Other partners

government. Direct control management Relationship management Existing Issues of Dry Ports in China：

1. Lack of unified development planning and existence of blind construction.

2. The sevices of dry ports relatively simple.

3. Modern management level is relatively low. Part 3

Policy Measures, Legislation and Solutions to Support Dry Port Development Policy Measures, Legislation and Solutions to Support Dry Port Development

•the central government plays an increasingly critical role.

In March 2009, the State Council promulgated the Adjustment and Revitalization Planning for Logistics Industry. Local governments also promulgate the corresponding policies: Guangxi：Suggestion on Construction of Dry Port to Accelerate Development of Bonded Logistics System（2010）; Kunming ： Implementation Plan for Promotion of Construction of Dry Ports in Kunming City （2010）.

Policy Measures, Legislation and Solutions to Support Dry Port Development

•the central government plays an increasingly critical role. In 2013, the General Secretary Xi Jinping proposed the strategic concept of the “The Belt and Road”. In September 2014, the State Council issued the Medium-and Long-term Planning for Logistics Industry Development (from 2014 to 2020). On December 26, 2014, the General Administration of Customs proposed the Scheme for the Implementation of “Three-mutual” and Construction and Reform of Faster Going Through Customs. In the Vision and Action for Promoting the Co-construction of The Belt and Road jointly issued by the National Development and Reform Commission, Ministry of Foreign Affairs and Ministry of Commerce in March 2015.

Policy Measures, Legislation and Solutions to Support Dry Port Development

•The Ministry of Transport also successively issues documents.

Freight Hub (Logistics Park) Construction Scheme during the “13th Five-Year Plan” Action Plan for Promoting the Construction of Large Logistics Channel (from 2016 to 2020) Construction Scheme for the Collection and Distribution System for the Ports during the “13th Five-Year Plan” Several Opinions on the promotion of Supply-side Structural Reform and “Cost Decreasing and Benefit Increasing” in the Logistics Industry and Opinions on the Implementation of the “The Belt and Road” Proposal and Acceleration of International Road Transport Facilitation.

Policy Measures, Legislation and Solutions to Support Dry Port Development

Social organization: In May 2014, Chinese Ports Association officially established the dry port branch and convoked the seminar for the development of dry ports in China Part 4 Practical Options for Financing Development and Operation of Dry Ports in China Practical Options for Financing Development and Operation of Dry Ports in China

 Construction subject of international dry port in China

The investors of dry ports in China mainly include: port, local enterprise, railways company, local government and etc.

The majority of dry ports rely mainly on port investment and local enterprise investment. In some cities far away from harbors, the railway company also participates in the construction of dry ports, such as the dry ports in Chengdu, Harbin and Urumchi; a few dry ports are directly invested by the local government, such as the dry ports in Xi'an and Luoyang.

Practical Options for Financing Development and Operation of Dry Ports in China

 Financing mode of International dry port in China

PPP financing mode is usually developed in the constuction of dry ports.

Investment Government Subsidy Social Dry port department investor Policy support Operation management Development prospect of international dry port in China The strategic conception of the “The Belt and Road” in China provides new opportunities for further development of the dry ports. One of the focal points of “The Belt and Road” is the interconnection of transport infrastructure, and the dry ports, as a bridge connecting the inland areas with coastal ports and border ports, it will play a key role in implementation of the strategic concept of “The Belt and Road” in the future. THE END

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