APEC PORT SERVICES NETWORK

RRPORT ON ASIA-PACIFIC PORT DEVELOPMENT 2007

Reported by the APSN secretariat

Beijing, China, 2009

Contents Chapter Page

1. Overview of the Asia-Pacific Port Industry Development, 2007………………....1 2. Port Production………………………………………………………………..…15 3. Port Management & Control…………………………………………………….28 4. Investment and Financing of the Port Industry………………………………….32 5. Port Safety and Security…………………………………………………………38 6. Port Services……………………………………………………………………..44

Individual Report： 1. Report on Port Development of China, 2007……………………………...….52 2. Report on Port Development of Hong Kong, China, 2007…………………...74 3. Report on Port Development of Canada, 2007………………………..………96

List of Tables

Chapter Page

1. Economic growth rates of APEC member economies……………………………1 2. Exports of APEC member economies - value………………………………….…3 3. Annual average growth rates of exports of APEC member economies…………..4 4. Exports of APEC member economies - share………………….…………………6 5. Imports of APEC member economies - value…………………………….………7 6. Annual average growth rates of exports of APEC member economies……..……8 7. Imports of APEC member economies - share……………………………...……10 8. Container Port Throughputs of Selected APEC Member Economies…..……….12 9. List of the newly issued measures and regulations on the port and shipping industries in 2007, China……………………………………...…………………13 10. World‟s Top 20 Container Ports by Throughput in 2007……….………………15 11. Container port traffic for selected APEC member economies……..……………16 12. Port throughputs by types of cargo in China…………………….………………17 13. Tonnage handled at China‟s top ten container ports in 2007……………………18 14. Total Tonnage Handled in Canada‟s Port System………….……………………19 15. Canada‟s Marine Traffic Statistics by Sector……………………………………20 16. International Cruise Ship Traffic at Major Canadian Ports……………………...21 17. Productivity of major container ports in Canada, 2007……………………….…21 18. Container throughputs of major ports in Thailand………………………………22 19. Cargo throughputs of port of Hong Kong by year ………………...……………23 20. Statistics of four major cargo types of port of Hong Kong……………..………25 21. Waterway transport in Chinese Taipei by year…………………….……………27 22. Container throughputs at major ports in Chinese Taipei……………………...…27 23. List of the Port Related Laws/Regulations of Chinese Taipei…………………..28 24. FDI inflows, by host region and major host economy, 2006-2007………..….…32 25. Throughputs of main container terminals invested overseas in China, as of December 2007……………………….……………………….………...…33 26. Classified Statistics of the Statements of Compliance on Port Facilities Security in China by types of cargo……………………………………….………………39 27. Growth of the logistics related industry in 2007………..……….………………44 28. List of key players of logistics corporations in Singapore..…….……….………46 29. List of Top 10 Piloting Services measured by ships piloted……………….……47 30. Statistics of the Employment of Canadian Pilotage Authorities……………...…49 31. Total pilotage assignments and assignments per pilot in Canada……………….50

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Individual Report： Report on Port Development of China, 2007 1-1. China‟s GDP for selected years……………….………..……………………52 1-2. Growth rates of China‟s GDP……………….…………….…………………52 1-3. Imports and exports for selected years………………….……………………53 1-4. Growth rates of imports and exports of China……….………………………53 1-5. Total volume and growth rates of imports and exports of China to main zations and regions ……………….……………..……………………………54 3-1. Port throughputs of China, 2007…………………………………..…………58 3-2. Cargo throughputs of 100 million ton ports in China……………………..…59 3-3. Port throughputs of five major types of cargo…………………….…………60 3-4. Container throughputs of ports of a carrying capacity of 1 million TEUs in China, 2007………………………………………………………………..61 3-5. Waterway transportation of coal in main ports of China……………….……62 3-6. Tonnage of imported iron ore handled at main ports of China………………64 3-7. Tonnage of crude oil handled at main coastal oil ports……………...………65 5-1. Classified statistics of the Statements of Compliance on Port Facilities Security in China, by types of cargo……………….……………...…………68 6-1. Growth of the logistics related industry, 2007………………………………70 6-2. List of top 10 piloting services measured by the quantity of ships piloted….71 6.3. Volume of tally business in 2007………………….…………………………73

Report on Port Development of Hong Kong, China, 2007 1-1. GDP of Hong Kong, China over selected years……………….….…………74 1-2. Growth rates of Hong Kong‟s GDP over years……………….….…….……75 1-3. Imports and exports of Hong Kong, China…………………….…….………75 1-4. Growth rates of exports and imports of Hong Kong, China…….……...……76 2-1. Aids to Navigation in Use………………………….…………….…..………76 3-1. Major listed corporations in Hong Kong involving port business….….….…77 3-2. New maritime legislation, 2007………………………..……….……………78 3-3. Statistics on ships registered in Hong Kong, China in 2007…………………78 3-4. Ship registered and de-registered in Hong Kong by ship type in 2007……...79 3-5. Ships registered in Hong Kong by Gross Tonnage distribution, as at end of 2007…………………………………………………………...…80 3-6. Statistics for vessel arrivals and annual growth rates in Hong Kong………...81 3-7. Vessel arrivals by month in 2007……………….……………………………82 3-8. Vessel arrivals by ship type in 2007…………………………………………83 3-9. Container vessel arrivals at Hong Kong in 2007……………………….……85

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3-10. Container vessel arrivals at Hong Kong in 2007 by month………………..…86 4-1. Cargo throughput of Hong Kong Port ………………………………………86 4-2. Cargo throughput of Hong Kong Port by month…………….………………87 4-3. Container throughput of Port of Hong Kong…………………...……………89 4-4. Container throughput of imports of Port of Hong Kong……………………..90 4-5. Container throughputs of emports of Port of Hong Kong…………………...91 4-6. Source distribution of container throughputs of Port of Hong Kong………...92 4-7. Cargo handled by cargo type and mode of transport in 2007……………..…93

Report on Port Development of Canada, 2007 1-1. Gross domestic product at basic prices, overview-Annual……………..……96 1-2. Annual growth rates of Canada‟s GDP………………………………………97 1-3. Imports and exports in Canada over years……………………...……………99 1-4. Growth rates of imports and exports of Canada……………………………100 1-5. Canada‟s exports by origin, destination and mode of transport, 2007…...…100 1-6. Canada‟s imports by origin, destination and mode of transport, 2007….….101 1-7. Canadian exports by region…………………………………………………102 1-8. Shares of each mode of transport in the total trade volume of Canada….…103 1-9. Shares of each mode of transport in the total exports of Canada…………..104 1-10. Shares of each mode of transport in the total imports of Canada………...…105 1-11. Canada/other countries trade by mode and sector…………………………..106 2-1. Statistics of Canadian foreign trade volume………………..………………107 2-2. Canada‟s marine traffic statistics by sector…………………………………108 2-3. Major shipping companies of container transport in Canada………………109 2-4. Canadian-registered fleet by type………………………..…………………111 3-1. Canada's marine international vessel movements at major ports………..…113 3-2. Canada‟s marine traffic by sector………………………..…………………115 3-3. Canada‟s marine domestic and international traffic handled at Canada Port Authorities (CPA‟s) and other ports………..…………………116 3-4. Cargo handled by major commodity group………………………………...117 3-5. Canada‟s marine cargo throughput by major commodity group.….…...…..118 3-6. Canada‟s marine cargo throughput by sector…………………….…………119 3-7. International shipping - container traffic in TEU's…………………………123 3-8. International Passenger-Kms for the marine mode (cruise ship)……...……124 3-9. International traffic at major Canadian ports……………………….………124 4-1. Employment by Canadian Pilotage Authorities………………….…………125 4-2. Total pilotage assignments and assignments per pilot in Canada………..…127

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Chapter 1

Overview of the Asia-Pacific Port Industry Development: 2007

Fueled by the emerging market economies, the year 2007 witnessed an average economic growth rate of 5.5% in the APEC region, 1.7% above the world’s average.

In 2007, the global economy maintained good momentum for growth with international trade growing steadily worldwide. Overall, the global economy grew by 3.8％, down by 0.2% over the previous year. Affected by sluggish international financial markets and soaring oil prices, growth in the APEC region was moderate compared to the previous year. However, driven by vigorous economic development in the emerging market economies, the GDP of the APEC member economies maintained an average growth rate of 5.5%, 1.7% higher than the global average (See Table 1).

Table 1 Economic growth rates of APEC member economies (Percentage)

Total real GDP/Percentage Region, country or 80 80 90 90 95 00 territory 2004 2005 2006 2007 -00 -05 -00 -05 -05 -05

WORD 2.8 2.8 2.8 2.8 2.9 2.8 4.0 3.4 4.0 3.8

DEVELOPING 4.5 4.6 5.0 4.8 4.6 5.4 7.2 6.7 7.1 7.3 ECONOMIES ECONOMIES IN -5.5 -3.7 -4.8 -0.4 4.4 6.1 7.3 6.5 7.2 8.2 TRANSITION DEVELOPED 2.8 2.7 2.5 2.4 2.4 1.9 2.9 2.3 2.8 2.5 ECONOMIES

Mexico 2.4 2.5 3.1 3.0 3.4 1.9 4.2 3.0 (e)4.9 (e)3.2

Chile 5.9 5.5 6.6 5.2 3.6 4.2 6.0 5.7 (e)4.3 (e)5.1

Peru 1.3 1.9 4.7 4.0 2.9 4.3 5.2 6.4 (e)7.7 (e)9.0

China 10.1 (e)9.9 10.6 (e)9.8 (e)8.9 (e)9.6 10.1 (e)10.4 (e)11.1 11.9

Hong Kong, China 5.6 (e)5.1 4.3 (e)4.0 (e)3.5 (e)4.2 8.2 (e)7.0 (e)6.7 (e)9.3

Chinese Taipei 7.6 (e)6.7 6.5 (e)5.2 (e)4.2 (e)3.6 (e)6.1 (e)4.2 (e)4.9 (e)5.7

Korea 7.7 7.0 5.8 5.3 4.5 4.6 4.7 4.0 5.0 (e)4.9

Brunei Darussalam 0.9 1.4 2.1 2.3 2.4 2.2 0.5 0.4 3.7 (e)0.4

Indonesia 6.0 5.2 4.2 3.5 2.2 4.7 5.1 5.6 5.6 (e)6.3

1 Malaysia 6.9 6.5 7.0 5.7 4.1 4.8 7.3 5.2 5.9 (e)6.2

Philippines 2.3 2.8 3.3 3.7 3.9 4.8 6.2 5.0 5.4 (e)7.3

Singapore 7.7 7.1 7.7 6.2 4.7 4.3 8.8 6.6 7.9 (e)7.7

Thailand 7.2 6.2 4.2 3.8 2.6 5.4 6.3 4.5 5.0 (e)4.8

Viet Nam 6.5 6.7 7.9 7.5 6.9 7.5 7.8 8.4 7.8 (e)8.5

Papua New Guinea 4.0 3.8 5.0 3.8 2.7 2.5 2.9 3.1 (e)2.6 (e)6.2

Russia _ _ _ _ 4.4 6.2 7.1 6.4 6.7 (e)8.1

Canada 2.7 2.8 3.1 3.2 3.5 2.6 3.3 2.9 3.1 (e)2.6

United States 3.2 (e)3.2 3.5 (e)3.2 (e)3.1 (e)2.4 (e)3.6 (e)3.1 (e)2.9 (e)2.2

Japan 2.8 (e)2.3 1.1 (e)1.0 (e)0.9 (e)1.3 (e)2.7 (e)1.9 (e)2.4 (e)2.1

Australia 3.3 3.4 4.0 3.8 3.6 3.3 2.7 2.8 (e)2.8 (e)3.9

New Zealand 2.1 2.4 3.2 3.3 3.2 3.7 3.7 1.9 1.3 (e)3.1

Notes: e Estimated _ Not Available

Source: UNCTAD HANDBOOK OF STATISTICS 2008，UNCTAD Secretariat Hong Kong in Figures (2008)，Census and Statistics Department of Hong Kong

To be more specific, however, the APEC member economies did not perform equally. Affected by its slumping housing market and sub-prime mortgage lending crisis, the United States‟ economy grew by 0.6% in the fourth quarter of 2007 and by 2.2% for the entire year. Japan saw an economic recovery in 2007 with an annual economic growth rate reaching 2.1%. Compared to the US and Japan, Australia and New Zealand sustained relatively vigorous growth rates of 3.9% and 3.0%, respectively. As for their developing counterparts, the emerging market economies displayed substantial economic growth as four of them maintained growth rates of more than 8% in 2007, specifically China, Peru, Vietnam and Russia. Most notable of these was China, which recorded a growth rate of 11.9%, or twice the global average.

The Volume of Import & Export Trade Grew. Due to continued economic development within the region，trade volumes between and among APEC member economies grew steadily. In 2007, the total volume of imports and exports amounted to 27,889,625 million US dollars worldwide. The total export volume was 13,833,041 million US dollars, a 14.4% year-on-year increase, and the import volume was 14,056,584 million US dollars, a 13.9% year-on-year increase. Similarly, the Asia-Pacific region recorded a new high in import/export volume, with a total trade volume of 12,713,617 million US dollars. Registered exports totaled 6,220,182 US million dollars and accounted for

2 44.97% of the world‟s total exports, up 13.9% over the previous year. Total imports stood at 6,493,435 million US dollars and made up 46.19% of the world‟s total imports, up by 11.3% year-on-year. The trade volume between and among APEC member economies in 2006 was estimated at 3,763,818 million US dollars.

Table 2 Exports of APEC member economies - value (Millions of dollars)

Exports (f.o.b.) - Exportations (f.a.b.) / Millions of dollars Region, country or territory 1990 2000 2003 2004 2005 2006 2007

WORLD 3479591 6455988 7547559 9182967 10474871 12087769 13833041

DEVELOPING 843904 2056407 2426752 3097429 3775908 4505697 5190026 ECONOMIES ECONOMIES IN 118709 154507 206692 282017 359164 449482 533684 TRANSITION DEVELOPED 2516978 4245074 4914115 5803521 6339799 7132590 8109330 ECONOMIES

APEC 1332544 3114807 3340256 4059444 4686837 5461946 6220182

Mexico 40711 166367 165396 189084 213891 250441 272055

Chile* 8373 19210 21664 32520 41297 58116 68296

Peru* 3231 6955 9091 12617 16587 23765 27680

China 62091 249203 438228 593326 761953 969380 1218000

Hong Kong, China 82160 201860 223762 259260 289337 322669 344629

Chinese Taipei 67079 147777 143900 173909 197779 224007 246723

Korea (1) 65016 172267 193817 253845 284419 325465 371554

Indonesia 26807 65407 64109 71785 86179 98548 118728

Malaysia (2) 29452 98229 99369 125744 140870 160573 176024

Philippines 8117 39783 36229 39680 39879 47416 (e)50761

Singapore (3) 52730 137804 144181 198637 229649 271807 299271

Thailand* 23068 68963 80324 96248 110178 130803 153103

Viet Nam 2404 14449 20149 26485 32442 39605 48400

3 Papua New Guinea 1144 2095 2207 2552 3273 4166 (e)4551

Canada 127629 276635 272819 304528 359431 389531 416464

United States* 393592 781918 724771 818520 907158 1038270 1162980

Japan 287581 479249 471817 565675 594905 649931 709668

Australia* 39752 63870 71546 86420 105832 123293 141083

New Zealand 9394 13297 16527 20344 21729 22434 26950

Russia(4) _ 105565 135929 183207 243798 303926 355464

Brunei Darussalam* 2213 3903 4421 5057 6250 7800 _

Notes: * Countries which use the Special Trade System as reporting system. e Estimated _ Not Available (1) Excluding imports of goods financed through foreign aid. (2) Inter-trade between the States of Malaysia included. From 1965 onwards, excluding military imports and offshore installations of petroleum industry. (3) Including trans-shipments to and from peninsular Malaysia. (4) Prior to 1994, excluding trade with independent states resulting from the former USSR.

Source: UNCTAD HANDBOOK OF STATISTICS 2008, UNCTAD Secretariat

Table 3 Annual average growth rates of exports of APEC member economies (Percentage)

Exports (f.o.b) - Exportations (f.a.b.) / Percentage Region, country or territory 80 80 90 90 95 00 2004 2005 2006 2007 -00 -05 -00 -05 -05 -05

WORLD 7.1 7.1 6.8 6.9 6.5 11.3 21.7 14.1 15.4 14.4

DEVELOPING 7.7 8.2 9.1 9.3 9.1 14.2 27.6 21.9 19.3 15.2 ECONOMIES ECONOMIES IN 1.4 3.6 6.8 9.3 10.1 19.6 36.4 27.4 25.1 18.7 TRANSITION DEVELOPED 7.2 6.8 5.9 5.8 5.2 9.5 18.1 9.2 12.5 13.7 ECONOMIES

APEC 9.3 8.6 8.5 7.5 6.2 9.6 21.5 15.5 16.5 13.9

Mexico 11.0 11.0 16.1 12.5 9.2 5.3 14.3 13.1 17.1 8.6

4 Chile* 10.0 9.7 9.4 9.1 7.8 17.8 50.1 27.0 40.7 17.5

Peru* 4.2 5.9 9.0 9.9 9.7 19.6 38.8 31.5 43.3 16.5

China 14.7 15.5 14.5 16.4 17.5 26.7 35.4 28.4 27.2 25.6

Hong Kong, China 14.5 12.0 8.3 6.7 4.5 8.5 15.9 11.6 11.5 6.8

Chinese Taipei 10.8 9.2 7.2 6.1 5.0 7.7 20.9 13.7 13.3 10.1

Korea (1) 12.2 11.1 10.1 9.2 7.8 12.9 31.0 12.0 14.4 14.2

Brunei Darussalam* -1.7 1.2 2.4 6.2 10.4 10.6 14.4 23.6 24.8 _

Indonesia 6.3 6.4 8.5 6.8 4.9 6.3 12.0 20.1 14.4 20.5

Malaysia (2) 12.7 11.4 12.2 9.3 5.9 8.8 26.5 12.0 14.0 9.6

Philippines 11.4 11.0 18.8 12.6 7.8 1.7 9.5 0.5 18.9 (e)7.1

Singapore (3) 12.2 10.8 9.9 8.2 5.5 12.6 37.8 15.6 18.4 10.1

Thailand* 15.2 13.3 10.5 9.0 6.7 11.1 19.8 14.5 18.7 17.0

Viet Nam 21.0 20.5 22.7 20.3 17.6 18.5 31.4 22.5 22.1 22.2

Papua New Guinea 6.1 4.9 3.7 2.6 0.9 10.7 15.6 28.3 27.3 (e)9.2

Russia(4) _ _ _ _ 10.0 19.2 34.8 33.1 24.7 17.0

Canada 7.2 6.8 8.3 6.9 5.5 5.5 11.6 18.0 8.4 6.9

United States* 7.6 6.7 7.2 5.2 3.2 3.3 12.9 10.8 14.5 12.0

Japan 7.0 5.9 4.1 3.6 3.0 6.5 19.9 5.2 9.2 9.2

Australia* 6.7 6.4 5.0 5.5 5.3 10.7 20.8 22.5 16.5 14.4

New Zealand 5.8 5.6 3.9 4.7 4.3 11.4 23.1 6.8 3.2 20.1

Notes: * Countries which use the Special Trade System as reporting system. e Estimated _ Not Available. (1) Excluding imports of goods financed through foreign aid. (2) Inter-trade between the States of Malaysia included. From 1965 onwards, excluding military imports and offshore installations of petroleum industry. (3) Including trans-shipments to and from peninsular Malaysia. (4) Prior to 1994, excluding trade with independent states resulting from the former USSR.

Source: UNCTAD HANDBOOK OF STATISTICS 2008, UNCTAD Secretariat

5 Table 4 Exports of APEC member economies - share (Percentage)

Region, country or Exports (f.o.b) - Exportations (f.a.b.) / Percentage

territory 1995 2000 2002 2003 2004 2005 2006 2007

WORLD 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000

DEVELOPING 27.625 31.853 31.770 32.153 33.730 36.047 37.275 37.519 ECONOMIES ECONOMIES IN 2.357 2.393 2.510 2.739 3.071 3.429 3.718 3.858 TRANSITION DEVELOPED 70.018 65.754 65.721 65.109 63.199 60.524 59.007 58.623 ECONOMIES

APEC 45.52 48.25 45.62 44.26 44.21 44.74 45.19 44.97

Mexico 1.538 2.577 2.478 2.191 2.059 2.042 2.072 1.967

Chile* 0.310 0.298 0.280 0.287 0.354 0.394 0.481 0.494

Peru* 0.106 0.108 0.119 0.120 0.137 0.158 0.197 0.200

China 2.877 3.860 5.021 5.806 6.461 7.274 8.020 8.805

Hong Kong, China 3.360 3.127 3.086 2.965 2.823 2.762 2.669 2.491

Chinese Taipei 2.157 2.289 2.012 1.907 1.894 1.888 1.853 1.784

Korea (1) 2.418 2.668 2.505 2.568 2.764 2.715 2.693 2.686

Brunei Darussalam* 0.046 0.060 0.057 0.059 0.055 0.060 0.065 _

Indonesia 0.918 1.013 0.912 0.849 0.782 0.823 0.815 0.858

Malaysia (2) 1.429 1.522 1.438 1.317 1.369 1.345 1.328 1.272

Philippines 0.338 0.616 0.563 0.480 0.432 0.381 0.392 (e)0.367

Singapore (3) 2.287 2.135 1.930 1.910 2.163 2.192 2.249 2.163

Thailand* 1.091 1.068 1.050 1.064 1.048 1.052 1.082 1.107

Viet Nam 0.105 0.224 0.255 0.267 0.288 0.310 0.328 0.350

Papua New Guinea 0.051 0.032 0.025 0.029 0.028 0.031 0.034 (e)0.033

Russia(4) 1.603 1.635 1.655 1.801 1.995 2.327 2.514 2.570

Canada 3.716 4.285 3.892 3.615 3.316 3.431 3.223 3.011

United States* 11.307 12.112 10.688 9.603 8.913 8.660 8.589 8.407

Japan 8.568 7.423 6.426 6.251 6.160 5.679 5.377 5.130

6 Australia* 1.027 0.989 1.003 0.948 0.941 1.010 1.020 1.020

New Zealand 0.264 0.206 0.222 0.219 0.222 0.207 0.186 0.195

Notes: * Countries which use the Special Trade System as reporting system. e estimated _ Not available (1) Excluding imports of goods financed through foreign aid. (2) Inter-trade between the States of Malaysia included. From 1965 onwards, excluding military imports and offshore installations of petroleum industry. (3) Including trans-shipments to and from peninsular Malaysia. (4) Prior to 1994, excluding trade with independent states resulting from the former USSR.

Source: UNCTAD HANDBOOK OF STATISTICS 2008, UNCTAD Secretariat

Table 5 Imports of APEC member economies - value (Millions of dollars)

Region, country or Imports (f.o.b.) - Importations (f.a.b.) / Millions of dollars

territory 1990 2000 2003 2004 2005 2006 2007

WORLD 3590363 6653669 7771121 9462990 10776488 12337928 14056584

DEVELOPING 800281 1914743 2254347 2876773 3397199 3971659 4632355 ECONOMIES ECONOMIES IN 139945 104694 171830 223213 272642 349782 465513 TRANSITION DEVELOPED 2650137 4634232 5344943 6363004 7106648 8016487 8958716 ECONOMIES

APEC 1405143 3340280 3672126 4457756 5137855 5835311 6493435

Mexico 43548 182702 178503 206623 231821 268169 296578

Chile* 7742 18507 19322 24794 32735 38409 46966

Peru* 3470 8888 8414 10101 12502 15312 19580

China 53345 225094 412760 561229 659953 791605 955800

Hong Kong, China 82490 212805 231896 271074 299533 334681 367864

Chinese Taipei 54831 139927 127366 168090 182571 202725 219347

Korea (1) 69844 160481 178827 224463 261238 309383 356648

Indonesia 21837 40365 39546 50554 69408 75714 93088

7 Malaysia (2) 29258 81963 81948 105298 114411 131080 146770

Philippines 13004 37027 39502 42345 46964 54081 (e)56379

Singapore (3) 60774 134545 127939 163854 200047 238710 263150

Thailand* 33045 61923 75824 94410 118158 128723 140795

Viet Nam 2752 15638 25256 31969 36978 44891 60800

Papua New Guinea 1118 1151 1367 1680 1729 2209 _

Canada 123244 244786 245028 279931 331553 357651 386929

United States* 516987 1259300 1303050 1525680 1732350 1919430 2017330

Japan 235368 379511 382930 454542 514922 579574 619857

Australia* 41985 71529 89084 109384 125281 133613 165331

New Zealand 9501 13905 18559 23195 26234 26430 30890

Russia(4) _ 49125 83677 107120 137977 181161 245365

Brunei Darussalam* 1001 1107 1327 1422 1491 1760 _

Notes: * Countries which use the Special Trade System as reporting system. e Estimated _ Not Available. (1) Excluding imports of goods financed through foreign aid. (2) Inter-trade between the States of Malaysia included. From 1965 onwards, excluding military imports and offshore installations of petroleum industry. (3) Including trans-shipments to and from peninsular Malaysia. (4) Prior to 1994, excluding trade with independent states resulting from the former USSR.

Source: UNCTAD HANDBOOK OF STATISTICS 2008, UNCTAD Secretariat

Table 6 Annual average growth rates of exports of APEC member economies (Percentage)

Imports (f.o.b) - Importations (f.a.b.) / Percentage Region, country or 80 80 90 90 95 00 territory 2004 2005 2006 2007 -00 -05 -00 -05 -05 -05

WORLD 7.1 7.1 6.7 6.9 6.7 11.2 21.8 13.9 14.5 13.9

DEVELOPING 8.1 8.3 8.5 8.4 7.5 13.4 27.6 18.1 16.9 16.6 ECONOMIES

ECONOMIES IN 0.9 2.7 3.7 6.8 7.2 21.7 29.9 22.1 28.3 33.1

8 TRANSITION

DEVELOPED 6.9 6.8 6.2 6.4 6.4 10.0 19.0 11.7 12.8 11.8 ECONOMIES

APEC 9.1 8.7 8.7 8.0 7.0 10.0 21.4 15.3 13.6 11.3

Mexico 13.4 12.7 14.2 11.5 10.4 4.9 15.8 12.2 15.7 10.6

Chile* 9.9 9.0 10.3 7.6 3.9 12.2 28.3 32.0 17.3 22.3

Peru* 8.2 7.0 10.8 6.1 0.4 8.3 20.0 23.8 22.5 27.9

China 13.0 14.3 13.0 16.1 18.5 26.5 36.0 17.6 19.9 20.7

Hong Kong, China 14.4 12.0 8.8 6.8 3.8 8.1 16.9 10.5 11.7 9.9

Chinese Taipei 11.8 10.1 8.5 6.6 4.9 8.3 32.0 8.6 11.0 8.2

Korea (1) 11.1 10.2 7.1 7.5 6.3 12.1 25.5 16.4 18.4 15.3

Brunei Darussalam* 6.9 4.6 1.6 -0.5 -5.0 5.7 7.2 4.9 18.0 _

Indonesia 6.9 6.6 3.6 4.6 3.8 11.9 27.8 37.3 9.1 22.9

Malaysia (2) 12.9 11.2 9.5 7.3 3.7 8.2 28.5 8.7 14.6 12.0

Philippines 10.5 9.6 12.5 8.5 3.6 5.4 7.2 10.9 15.2 (e)4.2

Singapore (3) 10.6 9.1 7.8 5.9 3.1 9.3 28.1 22.1 19.3 10.2

Thailand* 12.9 11.3 5.0 6.0 4.9 14.2 24.5 25.2 8.9 9.4

Viet Nam 13.6 14.8 22.7 19.8 15.1 20.8 26.6 15.7 21.4 35.4

Papua New Guinea 1.2 1.0 -0.8 0.1 0.0 10.5 22.9 2.9 27.8 _

Russia(4) _ _ _ _ 5.1 22.7 28.0 28.8 31.3 35.4

Canada 7.3 6.8 7.5 6.4 5.7 6.5 14.2 18.4 7.9 8.2

United States* 8.1 8.0 9.5 8.4 7.8 7.2 17.1 13.5 10.8 5.1

Japan 6.1 5.7 4.6 4.6 3.7 7.2 18.7 13.3 12.6 7.0

Australia* 6.7 6.6 6.4 6.5 6.3 14.1 22.8 14.5 6.7 23.7

New Zealand 5.9 6.0 5.6 6.2 5.6 15.5 25.0 13.1 0.7 16.9

Notes: * Countries which use the Special Trade System as reporting system. e estimated _ Not Available. (1) Excluding imports of goods financed through foreign aid. (2) Inter-trade between the States of Malaysia included. From 1965 onwards, excluding military imports and offshore installations of petroleum industry. (3) Including trans-shipments to and from peninsular Malaysia.

9 (4) Prior to 1994, excluding trade with independent states resulting from the former USSR.

Source: UNCTAD HANDBOOK OF STATISTICS 2008，UNCTAD Secretariat

Table 7 Imports of APEC member economies - share (Percentage)

Region, country or Imports (f.o.b) - Importations (f.a.b.) / Percentage

territory 1995 2000 2002 2003 2004 2005 2006 2007

WORLD 100.000 100.000 100.000 100.000 100.000 100.000 100.000 100.000

DEVELOPING 28.572 28.777 28.870 29.009 30.400 31.524 32.191 32.955 ECONOMIES ECONOMIES IN 2.193 1.573 2.026 2.211 2.359 2.530 2.835 3.312 TRANSITION DEVELOPED 69.236 69.649 69.104 68.780 67.241 65.946 64.974 63.733 ECONOMIES

APEC 46.59 50.20 48.68 47.25 47.11 47.68 47.30 46.19

Mexico 1.450 2.746 2.650 2.297 2.183 2.151 2.174 2.110

Chile* 0.304 0.278 0.256 0.249 0.262 0.304 0.311 0.334

Peru* 0.178 0.134 0.112 0.108 0.107 0.116 0.124 0.139

China 2.525 3.383 4.429 5.311 5.931 6.124 6.416 6.800

Hong Kong, China 3.685 3.198 3.116 2.984 2.865 2.780 2.713 2.617

Chinese Taipei 1.982 2.103 1.692 1.639 1.776 1.694 1.643 1.560

Korea (1) 2.583 2.412 2.283 2.301 2.372 2.424 2.508 2.537

Brunei Darussalam* 0.040 0.017 0.023 0.017 0.015 0.014 0.014 _

Indonesia 0.777 0.607 0.535 0.509 0.534 0.644 0.614 0.662

Malaysia (2) 1.485 1.232 1.198 1.055 1.113 1.062 1.062 1.044

Philippines 0.542 0.556 0.558 0.508 0.447 0.436 0.438 (e)0.401

Singapore (3) 2.380 2.022 1.747 1.646 1.732 1.856 1.935 1.872

Thailand* 1.353 0.931 0.970 0.976 0.998 1.096 1.043 1.002

Viet Nam 0.156 0.235 0.285 0.325 0.338 0.343 0.364 0.433

Papua New Guinea 0.028 0.017 0.019 0.018 0.018 0.016 0.018 _

Russia(4) 1.316 0.738 1.006 1.077 1.132 1.280 1.468 1.746

10 Canada 3.212 3.679 3.414 3.153 2.958 3.077 2.899 2.753

United States* 14.736 18.926 18.009 16.768 16.123 16.075 15.557 14.351

Japan 6.421 5.704 5.059 4.928 4.803 4.778 4.697 4.410

Australia* 1.172 1.075 1.091 1.146 1.156 1.163 1.083 1.176

New Zealand 0.267 0.209 0.226 0.239 0.245 0.243 0.214 0.220

Notes: * Countries which use the Special Trade System as reporting system. e estimated _ Not Available. (1) Excluding imports of goods financed through foreign aid. (2) Inter-trade between the States of Malaysia included. From 1965 onwards, excluding military imports and offshore installations of petroleum industry. (3) Including trans-shipments to and from peninsular Malaysia. (4) Prior to 1994, excluding trade with independent states resulting from the former USSR.

Source: UNCTAD HANDBOOK OF STATISTICS 2008，UNCTAD secretariat

As crucial access points to the rest of the world, ports play pivotal roles in promoting foreign trade in each of the APEC member economies. Take the United States of America for example. Responsible for moving over 99% of the country‟s overseas trade by volume and 61 percent by value, US ports and waterways handle over 2.5 billion tons of cargo annually1. In this sense, healthy growth in port industries contributes tremendously to economic growth of the world as a whole and vice versa—the prosperity of the port industries depends largely on the development of the global economy.

Port Construction Yielded Remarkable Results.

The year 2007 witnessed an expansion of worldwide economic growth and trade, and port industries benefited from this vigorous and sustained momentum in no small measure. Bulk commodity and oil prices have soared since 2007, making it possible for oil-producing countries, mining countries, and nations in southern Europe and the Mediterranean to boast steady and sustained economic growth rates, causing an increase in demand for consumption and infrastructure construction as well as an expansion of container transportation. Meanwhile, an industrial transfer has taken root worldwide as the newly emerging market economies are becoming the main industrial centers. Evidence of this can be seen from the tremendous growth in exports from China, India, and Vietnam.

With market demand for shipping on the rise, governments and enterprises invested more in port construction, which in turn encouraged construction and upgrading of port infrastructure. China is a case in point. China invested a total of 88.648 billion RMB in both coastal and

1 See America’s Ports today,

11 inland construction, a year-on-year increase of 1.729 billion RMB, or 2.0% over the previous year. Under the auspices of expanded investment, China has built or converted a total of 211 berths at coastal ports and added 324.29million tons in terms of throughput capacity, with 114 of these berths having throughput capacities of 10thousand tons or more each. As a whole, handling capacity of costal ports has increased by 30.79million tons. Additionally, China had built or converted 160 berths at inland ports and added 75.6million tons of throughput capacity, which includes 9 berths with throughput capacities of 10thousand tons each. Inland handling capacity has, thereby, increased by 21.01million tons. Last but not least, China had succeeded in improving or constructing inland waterways totaling 594 kilometers.

Port Throughput Hit a New High

As port infrastructure construction strengthened in 2007, port productivity simultaneously increased. According to the Clarkson data, the global containerized trade volume in 2007 reached 131 million TEUs, a rise of 11% over the previous year. Global container throughput was recorder at about 465 million TEUs, up approximately 10%. Total turnover of new container ships was 1.41million TEUs, a slight increase over the previous year‟s figure. Similarly, Asia-Pacific ports enjoyed a booming year in terms of increased productivity with substantial growth in handling capacity of container transport. Among the world‟s top 20 container ports in 2007, 15 of them are located in the APEC member economies and their transport volumes made up 39% of the world‟s total. Cargo throughput for Chinese ports alone was estimated at 6.41 billion tons in 2007, up by 15% from the previous year. Similarly, Chinese container throughput accounted for 24.5% of the world‟s total at 114 million TEUs, a year-on-year rise of 22.3%, which was higher than the entire world‟s growth rate. For further information about port throughout of other APEC member economies in 2007, please refer to Table 8.

Table 8 Container port throughputs of selected APEC member economies (TEUs)

Member Preliminary Percentage change Percentage change 2005 2006 Economy figures for 2007 2006-2005 2007-2006

Singapore 24104200 25608400 28764000 6.24 12.32

Hong Kong, 22601630 23538580 23881000 4.15 1.45 China

Korea 14885942 15513935 17015738 4.22 9.68

Malaysia 12197750 13419053 15120974 10.01 12.68

Chinese Taipei 12791429 13102015 13722312 2.43 4.73

Thailand 5115213 5574490 6200425 8.98 11.23

Indonesia 3803176 4042256 6112956 6.29 51.23

12 Philippines 3633559 3595279 3732872 -1.05 3.83

Mexico 2144345 2680081 3070770 24.98 14.58

Chile 1799427 2122529 2417336 17.96 13.89

Peru 991474 1084773 1175112 9.41 8.33

Viet Nam 474753 522347 3939759 10.03 654.24

Note: Statistics for 2007 is preliminary.

Source: REVIEW OF MARITIME TRANSPORT 2008, UNCTAD secretariat

Progress has been made by the APEC member economies in improving the port legal system.

With the aim of regulating an expanding port industry, the APEC member economies made strong efforts to tighten their regulations and administrations while improving port legal systems, especially in the emerging market economies. Take China, for instance. In 2007, China issued 12 new rules and regulations related to ports (see Table 1-9) and abolished numerous outdated ones. With the enactment of these new laws and the elimination of others, a new path has been paved for those member economies still trying to develop legal frameworks surrounding the port sector, and by providing them with the necessary institutional support, China has helped accelerate the legalization process within the port sector.

Table 9 List of the newly issued measures and regulations on the port and shipping industries in 2007: China

NO. Measures / Regulations Document NO.

1 Administrative Measures for Safety Production Supervision of Highway Decree No. 1 [2007] of the and Waterway Engineering Ministry of Transport 2 Administrative Measures for how to commission audit Traffic Decree No. 4 [2007] of the Construction Projects Ministry of Transport 3 Decree No. 5 [2007] of the Administrative Provisions for Port Construction Ministry of Transport 4 Decree No. 6 [2007] of the Administrative Provisions for Safe Transportation and Pollution Ministry of Transport Prevention of Shipping lines in P.R.C. 5 National Port Facilities Security Code by the P.R. China Decree No. 10 [2007] of the Ministry of Transport 6 Administrative Provisions for Port Planning Decree No. 11 [2007] of the Ministry of Transport

13 7 Circular on Trail Transportation of Internal Trade Cargo of Circular No. 11 [2007] of the Heilongjiang Province via Port of Russia to South-eastern Coastal Ports Ministry of Transport 8 Circular on Code for Technical Specification on Passenger Cable Car of Circular No.38 [2008] of MOT Three Gorges on the Yangtze 9 Circular on Code for Environment Protection of Port Project Design Circular No. 44 [2008] of MOT 10 Circular on Board Places for Pilots at Leading Ports in China Circular No. 46 [2008] of MOT 11 Notice on Enhancing Port Pilotage Management by Ministry of Transport, P.R.C. Jiao Shui Fa [2007] No. 174 12 Notice on Tightening up Management and Regulation on Port Tugboat Jiao Shui Fa [2007] No. 326 Market

Source： Ministry of Transport of the People‟s Republic of China

14 Chapter 2

Port Production

Against the backdrop of global economic development and increased demand for transportation, the Asia-Pacific region experienced a period of prosperity when measured by productivity. In 2007, the world‟s top 20 container ports controlled 48% of the world‟s total container port throughput, 15 of which are located in 7 of the APEC member economies. 6 of these ports are located in mainland China (Shanghai, Shenzhen, Qingdao, Ningbo, Guangzhou and Tianjin), 3 of them are in the United States (Los Angeles, Long Beach, and the Port of New York and New Jersey), 2 of them are in Malaysia (Kelang and Tanjung Pelepas), and the remaining 4 are Singapore port, Hong Kong port Busan port in Korea and Kaohsiung port in Chinese Taipei.

Table 10 World’s top 20 container ports by throughput in 2007 (TEUs)

Percentage Percentage Member Port 2005 2006 2007 change change Economy 2005-2006 2006-2007

Singapore Singapore 23192200 24792400 27932000 6.90 12.66

Shanghai China 18084000 21710000 26150000 20.05 20.45

Hong Kong Hong Kong 22601630 23538580 23881000 4.15 1.45 (China) (China)

Shenzhen China 16197173 18468900 21099000 14.03 14.24

Busan S.Korea 11843151 12030000 13270000 1.58 10.31

Rotterdam Netherlands 9250985 9654508 10790604 4.36 11.77

Dubai UAE 7619219 8923465 10653026 17.12 19.38

Chinese Kaohsiung 9471056 9774670 10256829 3.21 4.93 Taiwan

Hamburg Germany 8087545 8861545 9900000 9.57 11.72

Qingdao China 6307000 7702000 9462000 22.12 22.85

Ningbo China 5208000 7068000 9360000 35.71 32.43

Guangzhou China 4685000 6600000 9200000 40.88 39.39

Los Angeles U.S.A 7484624 8469853 8355039 13.16 -1.36

Antwerp Belgium 6482061 7018899 8176614 8.28 16.49

15 Long Beach U.S.A 6709818 7290365 7312465 8.65 0.30

Port Klang Malaysia 5715855 6326294 7120000 10.68 12.55

Tianjin China 4801000 5950000 7103000 23.93 19.38

Tanjung Pelepas Malaysia 4177121 4770000 5500000 14.19 15.30

New York/New U.S.A 4792922 5092806 5400000 6.26 6.03 Jersey Bremen/ Germany 3735574 4428203 4892239 18.54 10.48 Bremerhaven

Total 186445934 208470448 235813816 11.81 13.12

Source: REVIEW OF MARITIME TRANSPORT 2008, UNCTAD Secretariat

Despite overall prosperity of waterway transport throughout the region, waterway productivity varied among the APEC member economies in terms of absolute yields and growth rates due to differences in geographic location and economic development.

Table 11 Container port traffic for selected APEC member economies (TEUs)

Annual Annual Variation Variation Economy 2005 2006 20071 2005-2006 2006-2007 （%） （%）

Singapore 24 104 200 25 608 400 28 764 000 6.24 12.32

Hong Kong, China 22 601 630 23 538 580 23 881 000 4.15 1.45

S. Korea 14 885 942 15 513 935 17 015 738 4.22 9.68

Malaysia 12 197 750 13 419 053 15 120 974 10.01 12.68

Chinese Taipei 12 791 429 13 102 015 13 722 312 2.43 4.73

Thailand 5 115 213 5 574 490 6 200 425 8.98 11.23

Indonesia 3 803 176 4 042 256 6 112 956 6.29 51.23

Philippines 3 633 559 3 595 279 3 732 872 -1.05 3.83

Mexico 2 144 345 2 680 081 3 070 770 24.98 14.58

Chile 1 799 427 2 122 529 2 417 336 17.96 13.89

Peru 991 474 1 084 773 1 175 112 9.41 8.33

16 Vietnam 474 753 522 347 3 939 759 10.03 654.24

Notes： Preliminary statistics for 2007.

Source: REVIEW OF MARITIME TRANSPORT 2008, UNCTAD Secretariat

China In 2007, China saw overall growth of waterway transport in terms of volume, turnover, and port cargo throughput. The nation‟s waterway cargo transport volume amounted to 2.812 billion tons, and cargo turnover to 6,428,485 billion kilometers, rising 13.1% and 15.9%, respectively, over the previous year. National port cargo throughput reached 6.410 billion tons, a year-on-year increase of 15.1％, while passenger volume and turnover was 0.228 billion persons (a 3.6% annual increase) and 7.778 billion persons (a 5.7% annual increase), respectively.

Dry bulk cargo ranked first among the five major cargo types when measured by throughput, with a total of 3.565 billion tons or 55.6% of total port throughput, which represented a 13.5% annual increase. When judged by growth rates, break bulk cargo‟s 25.5% increase topped the list of the five major cargo types in 2007.

Table 12 Port throughputs by types of cargo in China

Year 2002 2003 2004 2005 2006 2007 Types of Cargo Throughput 1.53 1.776 2.335 2.756 3.14 3.565 （billion tons） Annual Growth 17.50 16.10 31.50 18.00 13.9 13.5 rate (%) Dry Bulk Percentage Share of 54.60 53.80 56.00 56.80 56.37 55.6 Throughput （%） Throughput 0.385 0.455 0.54 0.584 0.597 0.634 （billion tons） Annual Growth 10.20 18.20 18.70 8.10 2.0 6.2 Liquid rate (%) Bulk Percentage Share of 13.80 13.80 12.90 12.00 10.72 9.9 Throughput （%） Throughput Break Bulk 0.416 0.483 0.559 0.614 0.702 0.882 （billion tons）

17 Annual Growth 6.10 16.10 15.70 10.00 14.3 25.5 rate (%) Percentage Share of 14.90 14.60 13.40 12.70 12.45 13.8 Throughput （%） Throughput 0.34 0.439 0.551 0.694 0.889 1.095 （billion tons） Annual Growth 33.70 29.20 25.40 26.00 28 23.2 rate (%) Container Percentage Share of 12.10 13.30 13.20 14.30 15.96 17.1 Throughput （%） Throughput 0.128 0.144 0.187 0.205 0.243 0.235 （billion tons） Annual Growth 24.30 12.30 30.10 9.70 18.2 -3.3 rate (%) Ro/ro Percentage Share of 4.60 4.40 4.50 4.20 4.36 3.7 Throughput （%）

Source: Report on China Port Development 2007-2008, China Ports and Harbours Association.

The freight volume of China‟s containers registered a total of 29.53 million TEUs with a tonnage of 333.55 million tons, rising by 26.8％ and 29.4％， respectively, over the previous year. As a result, the corresponding growth rates were 6.7% and 12.2% higher than in 2006. The number of container ports with throughputs of over 1 million TEUs rose from 14 in 2006 to 16 in 2007. Shanghai maintained its position as the leader among domestic ports in terms of container throughout and became second among the world‟s container ports, outstripping Hong Kong for the first time. Shenzhen followed closely behind by exceeding the 20 million TEU mark, and Guangzhou recorded a growth rate of 39.1％ with its throughpout jumping to 9 million TEUs and ranked below Qingdao and Ningbo-Zhoushan Port. Both Lianyungang and Suzhou maintained growth rates of over 50%, placing the 9th and 10th, respectively.

Table 13 Tonnage handled at China’s top ten container ports in 2007 (10,000 TEUs)

Rank- Through- Year-on-year Container Out of Container Port ing put increase(％) Port Entering Port

1(1) Shanghai 2615.2 20.4 1188.5 660.2

18 2(2) Shenzhen 2110.4 14.3 1043.8 305.6

3(3) Qingdao 946.2 22.9 363.6 172.6

Ningbo-Zhous- 4(4) 943.1 32.2 421.9 148.0 han

5(5) Guangzhou 925.9 39.1 321.9 354.5

6(6) Tianjin 710.2 19.4 317.7 161.7

7(7) Xiamen 462.7 15.3 211.8 76.5

8(8) Dalian 381.3 18.7 136.2 91.3

9(9) Lianyungang 200.3 53.8 54.8 37.1

10(10) Suzhou 189.6 52.6 48.5 59.4

Notes： Inside（）are the ranking in 2006.

Source：The Ministry of Transport of the People‟s Republic of China.

Canada The Canadian waterway cargo transport volume in 2006 stood at 408.4 million tons and cargo turnover at 2.194 trillion ton-kilometers. In the comprehensive transport system, waterway cargo volume accounted for 30.7% and cargo turnover for 78.5%. In 2006, Canadian ports‟ total cargo handling capacity was 478.4 million tons, representing an annual increase of 1.8%. In the same year, Canada enjoyed a total passenger volume of 42.5 million persons, of which international shipping lines handled 2.5 million persons and domestic shipping lines 40.0 million persons. Table 14 Total tonnage handled in Canada’s port system (Million tons)

Share Port System 2005 2006 Percentage change (percent) 2006 Canada Port 248.8 253.7 2.0 53.0 Authorities (CPA) Transport Canada 221.3 224.7 1.5 47.0 and “Other” ports

Total2 470.1 478.4 1.8 100.0

Notes: 1 CPA‟s port Web sites data for 2005 and 2006. 2 2005 traffic handled from Statistics Canada, 2006 total traffic is estimated based on CPA‟s market shares.

19 Source: Transportation in Canada 2007-- An Overview, Transport Canada

Table 15 Canada’s marine traffic statistics by Sector （(Million tons)

Flows Year Total Flows Total Handled Domestic Transborder Overseas

1986 60.5 68.2 138.4 267.1 327.6

1987 67.6 73.2 153.8 294.6 362.2

1988 70.0 83.8 166.2 320.0 390.0

1989 62.0 82.7 156.7 301.4 363.4

1990 60.4 76.2 156.1 292.7 353.1

1991 57.9 67.0 167.2 292.1 350.0

1992 52.3 67.9 155.3 275.5 327.8

1993 50.4 69.9 154.2 274.5 324.9

1994 52.2 78.8 168.1 299.1 351.3

1995 50.4 85.2 174.5 310.1 360.5

1996 48.8 88.5 171.4 308.7 357.5

1997 46.7 94.3 188.4 329.4 376.1

1998 48.3 100.1 179.4 327.8 376.1

1999 52.2 102.0 179.2 333.4 385.6

2000 54.5 108.8 185.0 348.3 402.8

2001 53.9 108.0 178.9 340.8 394.7

2002 62.6 114.3 168.4 345.4 408.1

2003 68.6 123.4 183.3 375.3 443.8

2004 69.1 123.3 191.7 384.1 453.3

2005 69.6 128.7 202.3 400.6 470.1

20061 70.0 129.5 208.9 408.4 478.4

Notes: 1 Data estimated for 2006.

20 Source: Transportation in Canada 2007-- An Overview, Transport Canada

Table 16 International cruise ship traffic at major Canadian Ports (Person)

Year Vancouver Montreal Quebec City Halifax Saint John

1993 519942 30626 38642 30917 12379

1994 591409 33920 36401 37717 23629

1995 596724 27384 38981 30257 12226

1996 701547 19078 21464 36584 8543

1997 816537 29324 36569 44328 19813

1998 873102 32583 43838 47987 28418

1999 947659 18306 34628 107837 40000

2000 1053989 25200 35855 138313 101410

2001 1060383 23900 48776 160241 88190

2002 1125252 38000 66365 157036 71168

2003 953376 33600 59000 170425 83946

2004 929976 43385 71280 212834 138800

2005 910172 35359 66000 188678 90203

2006 837823 40565 64720 169824 87759

2007 (prel.) 960000 34809 66152 176895 133676

Source: Transportation in Canada 2007-- An Overview, Transport Canada

Table 17 Productivity of major container ports in Canada, 2007

Port (Province/State) TEUs1 Boxes2 Containerized Cargo3

Fraser River 191,402 NA NA

Halifax 490071 285210 4229253

Montreal 1363021 832341 12406026

21 Prince Rupert 16793 9857 167030

Saint John 46574 25504 277415

St. John's 117599 54898 494948

Toronto 72579 39143 360912

Vancouver 2307289 1282216 19230565

Notes:

NA: The data was not available. 1 Twenty-Foot Equivalent Units (loaded and empty). 2 Total containers regardless of length (loaded and empty). 3 Metric Tons except where Noted.

Source: North American Port Container Traffic – 2007, AAPA Survey

As for types of cargo (domestic and foreign), dry bulk cargo ranked No. 1 in terms of throughput and represented a percentage share of 44.9% of the national total in 2005. Liquid break cargo and break bulk cargo followed closely after, ranking 2nd and 3rd and accounting for 32.3% and 11.9%, respectively, of the total share. Other types of general cargo accounted for 10.9% of the total handling capacity in 2005.

Thailand The waterway cargo transport volume in 2007 stood at 62.976 million tons and cargo turnover at 0.574 billion ton-kilometers in Thailand. With the moderate prosperity in waterway transport in Thailand, its port throughputs grew by 16.5% with a total tonnage of 0.211 billion tons. The volume of cargo imported reached 0.102 billion tons and that of cargo exported was 109.2 tons, increased by 1.7% and 34.9%2 respectively year-on-year.

As for types of cargo, liquid bulk cargo ranked No. 1 in terms of throughput and represented a percentage share of 47.9% of the national total in 2007. Containerized cargo and break bulk cargo followed closely after, ranking 2nd and 3rd, accounting for 28.7% and 18.6% respectively of the total share. Dry bulk cargo accounted for 4.5% of the total handling capacity in 2007 with a tonnage of 8.1 million tons3. The containerized cargo throughput reached 51.6 million tons and 6.68 million TEUs, a year-on-year increase of 11.3% and the volume of break bulk cargo registered 33.6 million tons.

Table 18 Container throughputs of major ports in Thailand (TEUs)

No. Port 2006 2007 Annual growth rate (%)

2 Only including throughputs of ports of call by vessels of 500 registered tons or above. 3 Statistics of port throughputs by cargo type exclude that of port of Bangkok.

22 1 Bangkok 1 537 607 1 575 544 2.5

2 Laem chabang 4 215 851 4 848 510 15.0

3 Songkhla 129 644 138 836 7.1

Source：Port Authority of Thailand

In 2007, the passenger volume of waterway transport in Thailand was on the decline with a total of 0.129 billion persons. International shipping lines handled a total 2.34 million people while domestic shipping lines handed a total of 0.127 billion people. By contrast, the passenger volume of Thailand waterway transport was 0.13 billion people in 2006, 1.119 million people of which were handled by international shipping lines and 0.129 billion people were handled by domestic shipping lines.

Hong Kong, China The cargo transport volume of Hong Kong, China in 2006 stood at 279.3 million tons, 240 million tons (85.9%) of which were the result of trade with other APEC member economies. In light of Hong Kong‟s unique geographic position, the role of waterway transportation within the entire transport system cannot be overstated. In 2006, waterway transport handled 85.3% of Hong Kong‟s cargo volume with a total volume of 238.2 million tons, 203.3 million tons of which were with other APEC member economies. The year 2007 placed Hong Kong‟s waterborne cargo throughput at 245.2 million tons, a 2.9% year-on-year rise, and its cargo turnover at 86.8 ton-kilometers.

Hong Kong witnessed a total passenger volume of 24.9 million persons in 2006, of which international shipping lines handled 22.9 million persons and domestic shipping lines handled a mere 2.0 million persons. The year 2007 saw a year-on-year increase of 14.1% and a total passenger throughput of 28.4 million persons, of which the domestic and international shipping lines were responsible for 26.1 million and 2.3 million persons, respectively. The Port of Hong Kong4 handled a total cargo volume of 245.4 million tons in 2007, growing by 3.0% year-on-year. Imports and exports contributed 141.3 million tons and 104.1 million tons, respectively, to the total, the former of which slumped by 0.2% and the latter of which rose by 7.7% year-on-year. Table 19 Cargo throughputs of port of Hong Kong by year (Thousands of tonnes)

Cargo Throughput

Year Annual Growth Rate Import Export Total (%)

1996 100 928 56 371 157 299 (+0.9)

4 Hong Kong, China has only one port, that is, Port of Hong Kong.

23 1997 107 513 61 716 169 229 (+7.6)

1998 106 851 60 319 167 170 (-1.2)

1999 106 305 62 533 168 838 (+1.0)

2000 106 935 67 707 174 642 (+3.4)

2001 110 472 67 738 178 210 (+2.0)

2002 119 729 72 782 192 510 (+8.0)

2003 128 554 79 058 207 612 (+7.8)

2004 134 854 86 025 220 879 (+6.4)

2005 140 956 89 183 230 139 (+4.2)

2006 141 542 96 696 238 238 (+3.5)

2007 141 324 104 109 245 433 (+3.0)

Source: Marine Department, Hong Kong SDR

As for types of cargo, containerized cargo ranked 1st when measured by throughput and took up a percentage share of 77.4% of gross port throughout in 2007. Break bulk cargo followed closely after, with a percentage share of 8.0%. The next were unpacked liquid bulk cargo and unpacked solid bulk cargo, ranking 3rd and 4th and accounting for 7.3% and 7.2%, respectively.

24 Table 20 Statistics of four major cargo types of port of Hong Kong (Thousands of tonnes)

1999 2000 2001 Cargo Type Discharged Loaded Total % Share Discharged Loaded Total % Share Discharged Loaded Total % Share

Containerized Cargo 51 042 37 451 88 493 69.0% 63 624 57 336 120 960 69.3% 64 031 57 977 122 008 68.5%

Break Bulk Cargo 8 611 1 355 9 966 7.8% 11 273 7 917 19 190 11.0% 11 614 7 697 19 311 10.8%

Unpacked Liquid Bulk Cargo 18 174 516 18 690 14.6% 15 463 1 854 17 317 9.9% 15 089 1 476 16 565 9.3%

Unpacked Solid Bulk Cargo 10 794 279 11 073 8.6% 16 575 601 17 176 9.8% 19 738 588 20 326 11.4%

Total 88 621 39 601 128 222 100.0% 106 935 67 707 174 643 100.0% 110 472 67 738 178 210 100.0%

2002 2003 2004 Cargo Type Discharged Loaded Total % Share Discharged Loaded Total % Share Discharged Loaded Total % Share

Containerized Cargo 70 761 62 390 133 151 69.2% 78 744 68 172 146 916 70.8% 90 295 75 976 166 271 75.3%

Break Bulk Cargo 11 773 8 392 20 165 10.5% 11 723 8 763 20 486 9.9% 10 034 7 762 17 796 8.1%

Unpacked Liquid Bulk Cargo 15 529 1 310 16 839 8.7% 15 027 1 219 16 246 7.8% 15 862 1 093 16 955 7.7%

Unpacked Solid Bulk Cargo 21 665 689 22 354 11.6% 23 060 904 23 964 11.5% 18 664 1 194 19 858 9.0%

Total 119 729 72 782 192 509 100.0% 128 554 79 058 207 612 100.0% 134 854 86 025 220 880 100.0%

25 2005 2006 2007 Cargo Type Discharged Loaded Total % Share Discharged Loaded Total % Share Discharged Loaded Total % Share

Containerized Cargo 91 811 77 590 169 401 73.6% 95 748 84 990 180 738 75.9% 98 214 91 821 190 035 77.4%

Break Bulk Cargo 10 248 8 575 18 823 8.2% 11 873 9 226 21 099 8.9% 10 592 9 084 19 676 8.0%

Unpacked Liquid Bulk Cargo 17 208 1 119 18 327 8.0% 16 391 1 060 17 451 7.3% 16 700 1 261 17 961 7.3%

Unpacked Solid Bulk Cargo 21 689 1 899 23 588 10.2% 17 530 1 421 18 951 8.0% 15 819 1 943 17 762 7.2%

Total 140 956 89 183 230 139 100.0% 141 542 96 696 238 239 100.0% 141 324 104 109 245 434 100.0%

Source: Marine Department, Hong Kong SDR

26 Chinese Taipei In 2007, the total tonnage handled by waterborne transport registered 294.1 million tons in Chinese Taipei and ports accounted for 292.34million tons of cargo throughout, increasing 7% over the previous year. Comparing types of goods, containerized goods ranked first, accounting for 21% and container throughput totaled 13.73 million TEUs, rising 4.7% over 2006.

Table 21 Waterway transport in Chinese Taipei by year

Year 2006 2007

Vessel Calls（number） 41,033 39,197

TWT（tons） 601,275 607,653

Passenger Volume (person) 425,839 314,699

Port Throughput (TEUs) 13,726,551 13,107,896

Source: Department of Navigation and Aviation, Chinese Taipei

Table 22 Container throughputs at major ports in Chinese Taipei (TEUs)

No. Port Year 2006 Year 2007 Growth Rate (%)

1 Keelung 2,128,815 2,215,483 4.07

2 Taichung 1,198,530 1,247,750 4.10

3 Kaohsiung 9,774,670 10,256,829 4.93

Source: Department of Navigation and Aviation, Chinese Taipei

27 Chapter 3 Port Management & Control

The Asia-Pacific ports have made great progress in the development of legislation and law enforcement.

In today‟s world, laws and regulations play essential roles in ruling and control societies. Therefore, it is imperative to carry out effective management and control of ports under the guidance of an appropriate legal system with a coherent structure. In 2007, the APEC member economies made remarkable progress in building a strong and appropriate legal system to pave the way for the development of port management within both the Asia-Pacific region and global port industries as a whole.

In Canada，regulations were issued under the CMA in August 2007 to ensure continued stability of container trucking operations at the Vancouver and Fraser River port authority facilities. A review of the regulations is required to be conducted within two years. On November 16, 2007, proposed amendments to the Canada Marine Act (CMA) were introduced in Parliament as Bill C-23. These amendments and complementary policy initiatives are intended to strengthen the operating framework for Canada Port Authorities (CPA), promote the development of marine infrastructure, and foster a more flexible financial environment for the CPAs.

On December 22, 2007, the Government of Canada issued a certificate of amalgamation to combine the three British Columbia Lower Mainland port authorities of Vancouver, Fraser River and North Fraser, effective January 1, 2008, and continue them as the Vancouver Fraser Port Authority. The amalgamation was a key policy measure under the Asia-Pacific Gateway & Corridor Initiative to maximize port efficiency and optimize port planning.

China has been well on its way in developing a legal system with Chinese characteristics and has made continuous efforts to improve its legal framework surrounding ports, efforts that paid off in 2007 through a variety of achievements. Specifically, in addition to 11 new laws and regulations being issued and 32 abolished, the port legal system was advanced by The Port Law of the People’s Republic of China, which serves as an institutional reference for port management and control.

Through a long process of amending and perfecting, Chinese Taipei has developed a sophisticated legal system specific to its port sector (Table 21).

Table 23 List of port related laws/regulations of Chinese Taipei

No. Laws/ Regulations

1 Shipping Law

28 2 Regulations for Administrating Shipping Agency

3 Regulations for Administrating Vessel Carriers And Vessel Chartering Operators

4 The Seafarer Law of the Republic of China

5 Regulations for Ratifying the Employment of ROC Seafarers by Foreign Employers

6 Regulations for Employing And Evaluating New Ratings

7 Regulations for Administrating Small Ships

8 The Law Of Ships

9 Regulations for Administrating Passenger Ships

10 Regulations for Issuing Certificate of Vessel‟s Nationality

11 The Ship Registration Law

12 Bylaw of the Ship Registration Law

13 Regulations for Equipment of Ships

14 Regulations for Inspection of Ships

15 Pilotage Law

16 Regulations for Administrating Pilots

17 Regulations for Administrating Salvage Operators

18 The Commercial Port Law

19 Regulations on Port Services at Commercial Ports

20 Regulations on Wharf and Transit Sheds at Commercial Ports

Source: Department of Navigation and Aviation, Chinese Taipei

Among all modes of port management, the Public-Private Management Model (ports owned by the state and operated by the private sector) retains the dominant position in the Asia-Pacific port industry.

Based on the laws and regulations on ports, each APEC member economy has developed its own management model that has been adapted to its own specific situation. In brief, there are three types of ports in the Asia-Pacific region defined by management characteristics: ports owned by governments or State-Owned Enterprises, fully privatized ports, and ports owned by the State but operated by the private sector.

The Model of Ports Owned by Governments or State-Owned Enterprises

29 Many ports in China along with many from the developing world are still managed according to this model. Under such, the Port Authority or state-owned port enterprises are fully in charge of investment and operation of the port, leaving no room for private sector involvement in these areas. The port owns, maintains, and operates every available asset (fixed and mobile) and cargo-handling activities are executed by labor employed directly by the Port Authority.

On the one hand, as ports are a matter of public policy, the government can readily implement macro-control over the port industry. In other words, given the specific trends of economic development and the general interests of a nation, competent authorities will devise plans for port construction and development as appropriate and, thereby, create a port industry aimed at serving the overall public interests of that nation. On the other hand, the market tends to play a rather limited role in the port industry because ports do not fully utilize the strengths of the market. Accordingly, ports under this model are confronted with the following inescapable problems: investors tend to be confined to the public sector only, ports are lacking in both vitality and drive while service quality is often on the decline, and port efficiency and competitiveness are impaired considerably. Moreover, this model renders ports extremely vulnerable to the failures of the existing government.

The Model of Fully Privatized Ports

The UK constitutes a typical example of the fully privatized management model, under which ports are managed and operated solely by the private sector. British ports are completely privatized, meaning governments have no hand in financing port development. Because the market retains the dominant role in port operation, efficiency is greatly improved. Among the APEC member economies, Hong Kong, China has adopted a similar management model. All the commercial ports in Hong Kong are operating under a free port policy in which port facilities are constructed, operated, and managed by the private sector. Port authorities tend only to intervene administratively in the business operation of private firms, which are entitled to fix their own pricing. Under this model, ports have a dominant say over operations with little interference from public policy makers. Coupled with the introduction of business strategies into port operations, privatized ports are predominantly characterized by high efficiency and an elevated degree of marketization.

Nevertheless, the market is far from perfect. As the private sector acts largely in its own interests, many organizations are inclined to evade or avoid social responsibility in order to maximize profit. When ports show more concern for maximizing corporate profit than they do for the public good, sustainable development of the port industry as a whole cannot be realized. Furthermore, given that fully privatized ports must rely on highly developed private economies in which ports contribute considerably to domestic economic growth, some economies are reluctant to adopt this management model. Thus only a minority of economies around the world operates ports under the privatization model.

The Public-Private Management Model

30

The Public-Private Management Model is characterized by its mixed public-private orientation with ownership and management strictly separated. Under this model, the public sector is endowed with the power of ownership while the private sector assumes the responsibilities of operation. The United States, Singapore, and Japan adopt this kind of management model for their ports.

Take the United States for instance. To meet the demands of national economic development, the State draws up plans for port development and defines geographical boundaries of ports in line with strict procedures. Then it delegates ownership power to port authorities on behalf of the State, authorities which are then responsible for port investment and management on a macro scale so as to ensure an environment-friendly as well as safe and secure port industry. At the same time, the State rents out the ports‟ operation activities to private companies, which carry out all port operations (especially cargo-handling) using market principles. In this way, the government can fulfill its responsibilities as owner to oversee port planning, construction, and regulation so as to ensure that overall port development is aimed at the public good. Meanwhile, by allowing members of the private sector to serve as port operators, port efficiency and service quality are greatly improved through effective business techniques.

Under the general context of relaxing governmental control, more and more private elements are introduced into public services construction and it has become a trend worldwide to integrate government regulation and market principles to ensure the efficiency of public services. As it is of vital importance to national well-being and citizens‟ livelihood, the port industry should pursue sustainable development on the premise of serving the greater good. Subsequently, it is necessary for the industry to maximize the strengths of public intervention and private involvement while overcoming their respective weaknesses. Since governments worldwide are relaxing control over the business operations of ports, we have reason to believe that the Public-Private Management Model will become the ideal choice for ports of the Asia-Pacific region. The problem of how to define the boundary between public and private and how to better cope with the relationship between them inevitably arises; yet, this only indicates that all member economies need to increase efforts to explore better solutions for such problems. From this perspective, there is still long way to go in terms of improving and upgrading the management system of the Asia-Pacific ports.

31 Chapter 4 The Investment and Financing of the Port Industry

The port industry benefits considerably from the growth of FDI flows.

With sustained development of the global economy, the year 2007 witnessed an increase in corporate profits, an abundance of cash flow, and improvement in the overall investment environment. These factors help to facilitate cross-border mergers and acquisitions between companies and directly boosted global FDI to a record high. According to the UNCTAD, the inflow of global FDI in 2007 was estimated at about 1.5 trillion US dollars, a year-on-year increase of 17.8%5. The inflow of FDI in developed economies rose by 16.8%, in developing economies by 15.7%, and in transitional economies by 40.8%.

Among the APEC member economies, the US attracted the most FDI inflows, with a total of 192.9 billion US dollars and a year-on-year increase of 10%. Among all developing economies, China was the leading destination for FDI inflows, with Hong Kong, China and Singapore following closely after.

Table 24 FDI inflows by host region and major host economy (Billions of dollars)

Member Economy 2006 2007e Growth Rate（%）

United States 175.4 192.9 10.0

Japan - 6.5 28.8 ..

Chile 8.0 15.3 92.2

Mexico 19.0 36.7 92.9

China 69.5 67.3 - 3.1

Hong Kong, China 42.9 54.4 26.9

Indonesia 5.6 5.9 6.3

Malaysia 6.1 9.4 54.4

Philippines 2.3 2.5 4.6

Singapore 24.2 36.9 52.6

Thailand 9.8 10.0 2.3

5 See UNCTAD Investment Brief, Number 1, 2008.

32 Russia 28.7 48.9 70.3

Notes: e Estimated

Source: UNCTAD Investment Brief, Number 1, 2008,UNCTAD

The year 2007 also saw an impressive expansion of investment in the port industries within the Asia-Pacific region. Thriving international trade and the unique advantages inherent in the port industries encouraged investors to recognize the considerable investment value of the port sector. The inflow of the FDI into the industry gave impetus to the development of the Asia-Pacific port sector. Take China, for example. As of December 2007, 29 of the leading container terminal operators in overseas investment were in mainland China, 12 of which boasted double-digit throughput growth rates.

Table 25 Throughputs of main container terminals invested overseas in China, as of December 2007

Major Partners of Joint Annual Growth Rate Joint Ventures/Terminals Throughput Venture （%） Dalian Container Terminal PSA、Maersk 2593342.25 8.53 Co., Ltd. Dalian Port Container PSA、Maersk、COSCO 1074778.00 - Terminal Co., Ltd. (DPCM) Tianjin Orient Container Universal Container 1281020.25 13.86 Terminals Co., LTD. Terminal Co., LTD. Tianjin Five Continents China Merchants International Container Holdings (International) 1981459.25 11.70 Terminal Co. Ltd Company Limited DP Word Yantai Dubai Word‟s Ports 377152.00 17.84 Yantai Rising Dragon ICTSI Hang Kong 272158.00 - International Terminals Ltd. Qingdao Qianwan Container PTS 8237499.00 21.70 Terminals Ltd. NICC ENCINAL 950287.75 38.61 Shanghai Putong International Shanghai HUTCHISON 2701889.00 7.34 Hudong Container Terminal Co., Ltd. Shanghai Container HUTCHISON 3478077.00 -6.06 Terminal Co., Ltd. Shanghai East Container APM Terminal CO. Ltd 3730297.75 9.70 Terminal Co., Ltd.

33

Shanghai Mingdong . HUTCHISON 3484720.75 24.41 Container Terminal Co., Ltd. Ningbo Beilun International Container Terminal Co., . HUTCHISON 2060636.45 9.49 Ltd. Ningbo Daxie China China Merchants Merchants Holdings 700146.00 44.27 Holdings International, International Ningbo Gangji Terminal Mediterranean Shipping 2321314.25 - Operator Ltd. Company (Asia) Ningbo Fareast Terminal OOCL 331360.50 - Operator Ltd. Fuzhou Qingzhou Container PSA 777485.75 7.80 Terminal Co., Ltd. Fuzhou New Port International Container PSA 288174.75 50.00 Terminal Co., Ltd. Xiamen International Container Terminal Co., HUTCHISON 2822567.75 3.13 Ltd. Xiamen Xiangyu NWS NWS Holdings Limited 817244.45 8.74 Terminal Co., Ltd. Xiamen Songyu Container Maersk 309532.50 - Terminal Co., Ltd. Guangzhou Container PSA 1948569.50 9.43 Terminal Co., Ltd. Guangzhou South China Oceangate Container Maersk 577196.25 - Terminal Co., Ltd. China Merchants Shekou Container Terminals Holdings International, 3311580.75 28.20 Maersk China Merchants Port China Merchants Service (Shenzhen) Co., 1607159.75 7.00 Holdings International LTD. Yantian International Container Terminals HUTCHISON 10016208.00 13.00 Limited Chiwan Container Terminal China Merchants 5730529.00 14.26 Co., Ltd. Holdings International Zhangzhou China China Merchants 240098.00 51.61

34 Merchants Port Co., LTD. Holdings International Zhuhai International Container Terminals HUTCHISON 411748.00 5.70 (Jiuzhou) Limited

Source: Report on China Port Development 2007-2008, China Ports and Harbours Association.

Domestic Investment grew in 2007

Compared to overseas investors, APEC member economies as a whole contributed more to port development in the Asia-Pacific region in terms of direct investment. Each member economy expected to raise its profile in international shipping markets and enhance its international trade capacity. As a result, member economies witnessed strong economic growth and paved the way for increased investment in the port industries.

China boasted an economic growth rate of 11.4% in 2007, with investment in waterborne transport infrastructure construction at an historic high of 88.648 billion CMY, up 2.0% over the previous year. The amount of investment in coastal and inland construction reached 72.011 billion RMB and 16.637 billion RMB, with growth rates of 1.7% and 3.2% over the previous year, respectively. As for investment, China constructed, renovated, or enlarged 371 terminal berths, adding 399,890,000 tons to port throughput capacity. Of all newly built terminal berths, 211 were located in coastal ports with an incremental throughput capacity of 32,429,000 tons. 114 of these boasted handling capacities of over 10,000 tons each for an increased throughput capacity of 30,790,000 tons. 160 berths were located in inland ports with an incremental throughput capacity of 7,560,000 tons, 9 of which boasted handling capacities of 10,000 tons or more each for an increased throughput capacity of 2,101,000 tons.

In 2007, Canada‟s gross investment totaled 42.705 billion US dollars in registered transportation, up 2.3% year-on-year and representing 2.8% of its GNP. Commercial investment accounted for more than 73% of total investment with 31.179 billion US dollars. Comparatively, the Canadian government increased its investment by 11.0% over the year 2005, adding 11.526 billion dollars. However, this increase accounted merely for 27% of the national total. For instance, investment in the St. Lawrence Seaway in terms of asset replacement reached 35.5 million US dollars in 2007.

Port companies have made remarkable progress in raising funds by IPOs (Initial Public Offerings), and this way of financing has a promising future in the long run but with dim prospects in the short run.

The year 2007 witnessed an impressive expansion of financing in the global stock markets. According to incomplete statistics from the WFE (World Federation of Exchanges), the amount financed on the global stock market by means of IPOs and refinancing totaled 883.4

35 billion US dollars in 2007, up by 23.3% over 2006. IPOs raised 370.9 billion US dollars, an increase of 15.7% over previous year representing 42% of overall financing. Among the top five stock exchanges chosen for financing, 3 of them were from APEC member economies, namely, the New York Stock Exchange, the Shanghai Securities Exchange and Hong Kong Exchange. The New York Securities Exchange held the dominant position, accounting for 15.5% of the total sum financed on international stock markets. The Shanghai Securities Exchange followed closely after with 13.6% of the total. The HKEX ranked fifth, accounting for 7.9%6 of the total.

Due to differences in maturity levels of stock markets among the APEC member economies, financing of port corporations through IPOs varied considerably between developed and developing economies. In developed economies, the process of financing port companies through IPOs dates far back. For example, the 3 leading liner services in Chinese Taipei have all been listed on the stock market, the Evergreen Marine Co., Ltd. undergoing an IPO on the Taiwan Securities Exchanges as early as 1987. By contrast, port companies in most of the developing economies have just begun to seek financing through IPO‟s.

In China, in order to increase capital demand for projects like upgrading cargo structures and accelerating production, Jiangsu Lianyungang Port Corporation Limited issued Class A Shares on the Shanghai Securities Exchange in April 2007 and began the process of financing through an IPO. The Corporation issued a total of 150 million shares at a price of 4.98 RMB per share, raising a total sum of 724.59 million RMB from the capital market. The proceeds went to the high priority of constructing new berths, including the No. 59 all-purpose berth, which is part of the third phase of Xugou, and a special coke berth at the Lianyungang port. The amount of investment in the former was estimated at 317.57 million RMB and its annual cargo throughput at around 1.4 million tons, which includes such break bulk cargo types as billet, plank, and veneer. The amount of investment in the latter was estimated at 512.22 million RMB with a coke throughput of 3.2 million tons. On the day of offering, shares were priced at 15.26 RMB and closed at 14.31 RMB per share, increasing by 187.35% and reflecting investor confidence in the potential of the Lianyungang Port.

The public had always been very optimistic about the development of the port industries, evidenced by overwhelming responses to companies previously listed on the stock market. For example, on April 28, 2006, when the Port of Dalian was listed on the Hong Kong, China stock market, its IPO was oversubscribed 850 times. Although at that time the lending rate of the RMB had been adjusted and the Hang Seng Index of the Hong Kong Exchange had dropped considerably, the Dalian Port saw its share price surge 68% on its first trading day raising around 2.5 billion HKD, much more than the highly expected 2 billion HKD. Likewise, on May 24, 2006, the Port of Tianjin followed Dalian‟s lead in being listed on the Hong Kong stock market. Tianjin Port Development Holdings‟ shares were oversubscribed nearly 1,700 times and raised a total sum of 1.023 billion HKD, an increase of 26%. The success of Port corporations on stock markets has demonstrated the confidence of investors in the port industries.

6 Sources：The People‟s Bank of China, Annual Report 2007 :Financial Market: p33-34

36

Nevertheless, as the US sub-prime mortgage lending crisis deteriorated into a global financial crisis, the international securities market took an enormous blow in 2008 and corporate IPO‟s slowed considerably or even stopped completely. Port companies were no exception to this trend. To illustrate, the Port of Qingdao and the Port of Ningbo planned to introduce IPO‟s on the capital market in early 2008. Unfortunately, both ports seem to have slowed or halted development in this area. It is understandable that port corporations affected by the financial crisis would temporarily suspend their efforts in seeking financing through the stock market. However, many enterprises in the APEC port industries failed to take full advantage of IPO financing, China being a prime example. Listed companies from the Chinese port industries made up a small percentage of the total and those port corporations did not measure up to the international standard of 70% holdings in the security secondary market. In the long run, however, the future of financing for port corporations is still promising and growth will resume after the global economy recovers.

37 Chapter 5

Port Safety and Security

Since great changes have taken place in the recent development of the port industry, ports are faced with emerging challenges concerning safety and security against the background of increasing port sizes, continuing specialization of terminals, innovation and the introduction of advanced techniques, technologies, equipment and machinery, and high operation density arising from increased international trade, especially in the quantity and type of dangerous goods. In the wake of 9/11 in the US, terrorism has turned out to be the most distinct challenge impacting port safety. In its resolution dated September 28, 2001, the UN Security Council called upon all member states to take appropriate measures to suppress terrorism. Initiated by the US in 2002, the contracting parties of the SOLAS Convention held a diplomatic meeting on maritime security in London where revised versions of SOLAS and the International Ship and Port Facility Security Code were adopted to strengthen maritime security. Ever since, great importance has been attached to security issues at port facilities all over the world. In the Asia-Pacific region, all APEC member economies have realized the profound influence of anti-terrorism on international trade and have set out to take effective measures to address these problems. In January 2003, all 21 APEC member economies gathered in Mexico for a maritime anti-terrorism initiative called Secure Trade in the APEC Region, or STAR, which was of great importance in promoting the US CSI in the Asia-Pacific region. Shortly after, advocated by Singapore, the APEC meeting proposed strategies such as the Trade Recovery Plan in order to safeguard supply chain security. Given the ports‟ indispensable role in the supply chain, the importance of port safety and security to overall supply chain security cannot be overstated. From this perspective, there is a need for a vast expansion of port facility security along the entire supply chain. In accordance with the ISPS Code, port facilities are required to take different measures at different security levels. At Security level 1, minimal appropriate protective security measures shall be maintained at all times by port facilities while all vessels and port facilities operate normally. At Security level 2, port facilities should maintain appropriate additional protective security measures for a certain period of time as a result of heightened risk of a security incident. When there is the probable or imminent risk of a security incident, although it might not be able to identity specific targets, port facilities shall enter into Security level 3 and the relevant authority should issue instructions as appropriate and pass on security information to those ships and port facilities that might be affected. Port facilities should maintain further specific protective security measures for a limited period of time in order to ensure their safety. As contracting parties of the ISPS Code, all APEC member economies are obliged to act in accordance with the requirements set out in the ISPS Code so as to ensure the safety and security of port facilities. To fulfill their obligations, each of them is committed to effective measures to ensure the safe and secure operation of the Asia-Pacific Ports.

China As the competent port authority in China, the Ministry of Transport of the People‟s Republic of China took the opportunity presented by the Beijing 2008 Olympic Games to strengthen its efforts in safeguarding waterborne security. First, the MOT sped up development of a national management information system for port safety and security, as well as a port emergency response system. Accordingly, it offered guidance to local ports on adopting the best practices

38 for safe operation and made preparations for flood and typhoon protection to ensure the safety of port handling operations. Second, the MOT strengthened its efforts to secure port facilities nationwide in 2007. The MOT held the Working Meeting on Port Facilities Security in October 2007, which reviewed the achievement of implementation of the ISPS Code and previewed the work to be undertaken in the near future so as to meet emerging requirements. Moreover, the Ministry and the Shanghai Municipal People's Government jointly held the “Port Facilities Drill-2007: Implementation of the SOLAS Convention of the P. R. China” successfully in the Yangshan Deepwater Port area of the Shanghai International Shipping Center.

In addition, China has accelerated its development of a port security information system. It has finished outlining the framework and identifying benchmarks and has also begun constructing a pilot project. In December 2007, the MOT amended and promulgated the National Port Facilities Security Code of the People’s Republic of China as the set of regulations governing port facilities security work, laying out new guidelines for procedure and substance in this regard. For instance, it has simplified the procedures to formulate and approve the Port Facilities Security Assessment Report and the Port Facilities Security Plan and has specified those rules for the application and annual verification of the Compliance Statement of Port Facilities Security. Additionally, it further identifies the responsibilities of administrative authorities at all levels in the transport and port sectors in implementing the Code. Finally, it adds new elements to the previous version, ranging from setting and communicating the security levels of port facilities to security information and contact with supervision to inspection and legal responsibilities. Overall, it serves as the institutional framework for China to better protect international supply chain security.

In 2007, the Ministry initiated interactive inspections among different port facilities nationwide. By of the end of that year, a total number of 773 berths in 13 provinces had passed the experts‟ Port Facilities Security Assessment and, accordingly, acquired Statements of Compliance.

Table 26 Classified Statistics of the Statements of Compliance on Port Facilities Security in China by types of cargo

Provinces Oil Product / Break Bulk & Waterway/ /Municipality Container Chemicals Passenger Anchorage Others Total bulk General

Liaoning 8 10 3 15 10 5 1 52

Hebei 1 6 0 2 12 0 0 21

Tianjin 5 9 1 5 6 0 0 26

Shandong 7 12 5 3 27 0 1 55

Jiangsu 13 67 0 33 35 1 5 154

39 Shanghai 9 21 2 10 13 1 19 75

Zhejiang 7 28 1 18 11 5 12 82

Fujian 22 23 1 24 23 11 2 105

Guangdong 36 57 3 11 35 6 7 155

Guangxi 2 9 0 1 5 2 1 20

Hainan 1 9 1 1 5 0 0 17

Anhui 1 1 0 4 3 1 0 10

Jianxi 0 0 0 1 0 0 0 1

Total 109 245 17 119 178 32 41 773

Source：Ministry of Transport of P.R. China

Hong Kong, China

There are two main aspects of port safety issues in Hong Kong, China, including regulation of dangerous goods (ships) and port facilities security. In line with the Dangerous Goods (Shipping) Regulations (Cap. 295C), the owner, agents, or master of vessels or ships shall furnish the Marine Department of Hong Kong with a copy of manifest of dangerous goods along with the Marine Pollutant Declaration. With the goal of ensuring that all ships abide by set regulations, the Marine Department of Hong Kong Special Administrative Region, P.R. China will inspect the ships thoroughly so as to make sure that all packaging, labeling and recording materials on dangerous cargoes are identified to meet international conventions. In 2007, the Marine Department received a total of about 59,000 copies of manifest of dangerous cargos and carried out security inspections on 350 ships.

Concerning port facilities security, Hong Kong incorporated the provisions in the ISPS Code into Merchant Shipping Ordinance (Cap. 582) and Merchant Shipping Rules (Cap. 582A), both of which served as the legal framework for the development of port facilities security. The Marine Department of the Hong Kong Special Administrative Region (HKSAR) Government has been appointed as the Designated Authority of Hong Kong to fulfill the obligations set out under the ISPS Code to ensure the security of ports as a whole. A Port Facility Security Working Group (PFSWG), comprised of the Hong Kong Police, Customs and Excise Department, and Immigration Department and chaired by the Marine Department, has been established. The Working Group is the DA's executive arm and has been entrusted to fulfill the obligations under the Code in relation to port security. In addition, Hong Kong set up the Port Area Security Advisory Committee (PASAC) as a back up to the Marine Department. Chaired by the Deputy Director of Marine and composed of representatives from the port and shipping communities and other relevant government agencies, PASAC provides advice to the DA on all matters relating to the implementation of the IMO ISPS Code in

40 HKSAR. In this way, Hong Kong successfully implemented an overall security strategy, effectively addressing safety and security issues at the Port of Hong Kong.

United States of America

In the wake of 9/11, the US began to commit itself to a series of measures to enhance the safety of the port and port-related sectors. For instance, it put forward the CSI in January 2002, and President Bush signed the Maritime Transportation Security Act (MTSA) into law on November 25, 2002. Additionally, as of March 1, 2003, the United States Coast Guard acts under the direction of the Department of Homeland Security (transferred from the Department of Transportation).

On October 13, 2006, President Bush signed into law H.R. 4954, the „„Security and Accountability For Every Port Act of 2006,‟‟ or the „„SAFE Port Act‟‟. The law strengthens the Government‟s ability to protect the Nation‟s seaports and maritime commerce from attack by terrorists. In line with the Act, no later than December 31, 2007, all containers entering the United States through the 22 ports through which the greatest volume of containers enter the United States by vessel shall be scanned for radiation. The law also established an implementation timetable for the Transportation Worker Identification Credential program, authorized the Port Security Training Program, and amended the Port Security Grant Program to include risk-based allocation with the aim of helping enhance ports‟ abilities to resist terrorist attacks. In addition, the law requires 100% screening and scanning of high-risk containers originating outside the United States and unloaded at a U.S. seaport. In accordance with the law, the U.S. Government established a DHS Office in charge of cargo safety and security. The Office of Cargo Security Policy is responsible for international cooperation on security issues so as to ensure the development of international trade and to reduce damages to a minimum in case of a terrorist attack. Overall, the law rendered such port security practices and projects as the CSI and C-TPAT subject to a stronger legal framework.

In 2007, the U.S. government took a series of actions to ensure port safety. On January 1, the Management and Budget Office of the White House approved the Transportation Worker Identification Credential Programme and in March, started to conduct background investigations on 750,000 terminal workers, sailors, and others. On August 3, 2007, the President signed into law H.R. 1, "Implementing Recommendations of the 9/11 Commission Act of 2007." The legislation, which passed in the Senate by a vote of 85-8 on July 26, 2007, and in the House by a vote of 371-40 on July 27, 2007, put into place many of the recommendations put forward by the 9/11 Commission. According to this law, in general, a container that was loaded on a vessel in a foreign port shall not enter the United States (either directly or via a foreign port) unless the container has been scanned by non-intrusive imaging equipment and radiation detection equipment at a foreign port before it was loaded on the vessel; it shall also apply with respect to containers loaded on a vessel in a foreign country on or after July 1, 2012. This date may be extended for 2 to 4 years depending on the availability or state of condition of systems to scan containers.

41 Thailand

Thailand has four major laws and regulations governing port safety, namely, the Navigation in Thai Waters Act, the Thai Vessels Act, the Marine Department’s Regulation on Report of Vessels Calling or Leaving Thai Ports and Issuance of Port Clearance Permit, and the Revolutionary Decree No. 58. To ensure port safety and security, Thailand has undertaken and participated in several activities:

- Adopting and implementing the International Ship and Port Facility Security Code (ISPS Code). - Participating in the ISPS Code Implementation Assistance Program, an activity of Maritime Security Sub-Group, APEC Transport Working Group as funded by Transport Canada. - Participating in the Inter-Agency Border Strengthening (IABS) Workshop and related activities organized by the Australian Customs Service, the Australian Department of Immigration, and the Australian Department of Transport. - Participating in the Export Control & Related Border Security (EXBS) organized by the US Coast Guard. - Participating in ASEAN-Japan Maritime Security Program, in particular in developing the ASEAN-Japan Regional Action Plan on Port Security In addition, the Marine Department of Thailand was engaged in the following activities to ensure port safety and security in accordance with the Navigation in Thai Waters Act: the Annual Survey for Port Safety and approval of the Port Facility Security Assessment and Port Facility Security Plan.

Security Problems Facing the Asia-Pacific Ports Thanks to the concerted efforts of all APEC member economies, the Asia-Pacific ports have made remarkable progress in terms of coping with security issues. However, as the international community is still plagued by terrorism of all kinds, it will be the top priority for all APEC member economies to safeguard the safety of ports for an extended period of time. To be more specific, the following issues should top of the agendas of all parties involved in port safety problems.

The first priority focuses on how to improve the relationship, in terms of input in port safety and maintenance, among various levels of government and between the government and private sectors. In the long run, it will be vital for the continuing safety of ports to clearly outline the obligations and liabilities among all concerned parties. As port security is a shared responsibility, it should be obligatory for all levels of government administration along with the private sector to be engaged in the input and maintenance of port safety. Thus, it is important to improve the relationship between the two parties and to integrate their respective resources to better serve port safety and security. Take the US as an example. The US Coast Guard in 2003 projected that port facilities would need $5.4 billion to pay for security requirements over the next 10 years. Since September 11, 2001, ports have instituted heightened security measures and have invested millions of dollars to address terrorism threats, which have turned out to be heavy burdens on port enterprises. Nevertheless,

42 governments are trying to put more money and resources into the construction of port security. The SAFE Port Act of 2006 even calls for an annual funding level of $400 million for the Transportation Worker Identification Credential (TWIC) program. In spite of this, further study is needed to know whether such an amount of money is adequate or such a percentage is appropriate. In addition, further research will be necessary to allocate responsibilities and to integrate resources of the public and private sectors.

Second, both the public and private sectors need to attach greater importance to the sharing and exchange of information related to port safety. Without a thorough understanding of relevant port safety information, it will not be possible to take effective precautions against possible security incidents. To illustrate, enhanced international exchange of crime and security information provides an opportunity to reduce the flow of drugs and other illegal shipments. We all believe that the central government should play a leading role in building an information sharing mechanism and that local governments and private sectors should be as cooperative as possible so that the APEC member economies can establish an information sharing system aimed at providing port safety services in both the Asia-Pacific region and worldwide.

Last but not least, all member economies need to address the problem of how to train port security staff to be professionals. The maintenance of port safety depends largely on how professionals assess risk and devise better solutions to security threats.

43 Chapter 6

Port Services

As import and export trade thrived and port throughputs grew in the Asia-Pacific region, port services experienced robust development. Although lacking in data, this chapter aims to provide a general introduction to port services in some of the APEC member economies in areas such as logistics, piloting, and tally services.

I Logistics Services

China

Fueled by economic growth, China‟s total social logistics witnessed record high growth.

In 2007，with sustained and explosive economic growth, many logistics related businesses grew at remarkably high rates and, in China, the total demand for logistics services increased tremendously, thereby boosting development of the logistics sector (see Table 27). Meanwhile, central and local governments attached great importance to the logistics industry, creating a favorable environment for its growth and expansion. In 2007, the Ministry of Human Resources and Social Security of the P.R.C. and the China Federation of Logistics and Purchasing jointly held a Recognition Event to award outstanding groups and individuals who had made significant contributions to the growth of the logistics sector. This event celebrated the achievements and accomplishments of the industry and highlighted the importance of a favorable environment for the advancement of the industry as a whole.

Table 27 Growth of logistics related industries in 2007

Amount Item Growth Rate（%） （billion CNY） Total Added Value of Industrial output 10736.7 13.5 Total Added Value of the Domestic 1401.4 12.6 Construction Industry Gross domestic investment in fixed assets 13723.9 24.8

Total Retail Sales of Domestic Consumer 8921.0 16.8 Goods Gross Sales of Domestic Means of 2.21 19.8 Production

China‟s logistics demand coefficient, or the total value of logistics to GNP, rose to 3.2 in 2007, up from 2.8 in 2006. The China Federation of Logistics & Purchasing estimated that the total value of social logistics in China reached 74.8 trillion RMB, up 25.5% year-on-year, and the added value of its domestic logistics industry hit 1.68 trillion RMB, up 18.8% (yearly growth rates were up by 1.5 and 6.3 percentage points, respectively). The added value of the

44 logistics industry represented 17.1% of the total added value of the domestic service industry and 6.8% of GDP, from 17.5% and 6.7%, respectively, in 2006.

The shipping logistics sector experienced vigorous development.

Within the general context of prosperity for the logistics sector and an increase in port output, shipping logistics enterprises seized opportunities to enhance strategic cooperation with manufacturers and international shipping powers. On April 18, 2007, the China National Foreign Trade Transportation (Group) Corporation (SINOTRANS) established a strategic cooperative logistics partnership with Sinochem Corporation (Sinochem). On August 4, China Ocean Shipping (Group) Company (COSCO) signed a contract for iron ore transportation with a 20-year term of validity with Baosteel Group Corporation (Baosteel). On November 1, China Shipping (Group) Corporation signed a package of agreements with Maersk in the field of multi-mode, logistics, and container services. According to the 2007 Survey Report on Logistics Statistics of Key Enterprises in China recently released by the National Development and Reform Commission and the National Bureau of Statistics, COSCO, CSCL, and SINOTRANS Shipping ranked 1st, 2nd and 3rd in China‟s logistics industry.

With the development of regional cooperation on logistics issues, port logistics will continue to thrive.

In 2007, two provinces and one city in the Yangtze River Delta started the Joint Meeting System on modern logistics development and outlined measures to promote linkages of modern logistics within the Yangtze River Delta. New agreements were concluded among logistics corporations from Beijing, Tianjin, and Hebei Province. The logistics associations in Sichuan, Hubei, Zhejiang, Chongqing, Yunnan, Xinjiang, and Guangzhou jointly agreed upon “the Sichuan Declaration on Facilitation of Logistics Cooperation”. Twenty river cities signed an agreement on the “Generalized System of Preferences (GSP)”, which is concerned with customs clearances, charges, and calling operations within the region and covers provinces such as Anhui, Jiangsu, and Jiangxi. Under the concerted efforts of local governments and logistics corporations, a regional logistics center and an international shipping center are under development in the pan-Pearl River Delta, the Yangtze River delta, and the Yangtze valley. This will serve as a good platform for promoting further development of China‟s port logistic services.

On December 29, 2007, the MOT issued “Recommendations on Accelerating the Development of Modern Transport Industry” (No. 761 MOT [2007]). It set aside a special chapter entitled “To Promote the Development of Modern Logistics Industry” in order to shed light on the future of China‟s modern logistics industry.

Singapore

Due to its unique geographical location, Singapore is naturally rich in resources needed for logistics development. Singapore has a total of approximately 400 shipping corporations and has business partnerships with over 700 ports from more than 130 nations or regions. PSA

45 Corporation Ltd., for example, handles over 27.9 million containers annually. It also operates the world‟s largest container trans-shipment hub in Singapore and links shippers to a vast network of 200 shipping lines with connections to 600 ports in 123 countries. For the past few years, Singapore has been regarded by the American Association of Port Authorities as the busiest port in the world with a total handling capacity of over 2,500 TEUs and a total cargo tonnage of over 970 million tons annually.

With the aim of global economic prosperity and sustainable development, Singapore has made the best of its superior geographical conditions and has gained an upper hand over its Asian neighbors in terms of modern logistics development. After a long process of development, Singapore has managed to retain its lead as a regional and even international logistics center in that its logistics scale, particularly of international trade, and management techniques are the most advanced in Asia. In addition, thanks to its unique geographical strengths and favorable outlook for the logistics sector, Singapore has attracted a wide variety of logistics services to establish themselves within its territory. Currently, it is home to more than 8,000 logistics corporations and half of the world‟s top 50 Third-Party Logistics Service Providers are headquartered there. In 2007, the logistics industry of Singapore contributed 9.4% to its GDP from a total of over 8,000 corporations and 180,000 employees.

Table 28 List of key players of logistics corporations in Singapore

Ranking Corporation

1 CJGLS Asia Pte Ltd

2 Airocean Group Limited

3 CWT Distribution Limited

4 FPS Global Logistics Pte Ltd

5 Freight Links Express Holding Ltd

6 Goodpack Limited

7 IPACS e-Solutions (S) Pte Ltd.

8 Keppel Logistics Pte Ltd.

9 LTH Logistics (Singapore) Pte Ltd

10 ptune Orient Lines Ltd.

46 11 Pacific International Lines Logistics Pte Ltd.

12 Pacorini Toll Pte Ltd.

13 RichLand Group Limited

14 Sembawang Kimtrans Ltd(SKL)

15 Toll(Asia)Pte Ltd.

16 Agility Express Pte Ltd / Agility Exhibition Forwarding Pte Ltd)

17 YCH Group Pte Ltd.

II. Pilotage Service

China

Pilotage service experienced sustained growth.

In 2007, the number of ships piloted by national pilotage services stood at 298,400, a rise of 9.4% over 2006. Of these 266,700 ships were handled by coastal ports and 31,700 by inland ports. Among all ships piloted, container ships totaled 96,500, while special-purpose ships and super-ships totaled 51,400, accounting for 33.3% and 17.2% of the total, respectively.

Table 29 List of top 10 piloting services measured by ships piloted

Ranking Organzition Ships Piloted（no.）

1 Port of Shanghai 59753

2 Yangtze River Pilot Center 31703

3 Port of Shenzhen 24335

4 Port of Tianjin 23702

5 Ningbo-Zhoushan Port 28800

6 Port of QingDao 20514

7 Port of Dalian 14673

8 Port of Guangzhou 12099

9 Port of Xiamen 8644

47 10 Port of Rizhao 6994

Source: Ministry of Transport of P.R.China

Great progress has been made in upgrading the pilot hierarchy.

As of December 2007, China had a total number of 43 piloting services, 8 of which piloted over 10,000 vessels annually, and a total of 1,479 pilots, accounting for 1/7 of the world‟s total. China established a strict evaluation system to determine the hierarchical structure for pilots, including senior pilots, first-class pilots, second-class pilots, third-class pilots, assistant pilots, and associate pilots. Under this hierarchy, China had 296 senior pilots at an average age of 49, 224 first-class pilots at an average age of 40, 300 second-class pilots at an average age of 37, 317 third-class pilots at an average age of 31, and 345 assistant and associate pilots at an average age of 26. Senior and first-class pilots accounted for 20% and 15%, respectively, of the national total.

Up to now, China has maintained a reasonable pilot group structure and has been able to pilot 6th generation container ships to arrive at and depart from ports 24 hours a day. It is capable of piloting all types of ships, ranging from luxury passenger lines to special purpose construction ships to offshore drilling platforms and warships. Additionally, it can conduct piloting missions to respond to emergencies under various complicated circumstances.

The modernization of piloting facilities, plants, and equipment and technology has proceeded quickly.

In 2007, port construction accelerated and increasingly larger ships and higher density vessel calls were all issues confronting ports. Accordingly, ports were committed to improving and renewing their piloting facilities and equipment to address these challenges. It was common practice for many ports to install radar navigation systems and ultrasonic speed meters for vessel calls in the VTS, which proved helpful to ensure quality piloting services for vessels in adverse weather conditions. Meanwhile, piloting services reinforced their efforts in conducting scientific research and development and the comprehensive application of such, exhibited by achievements such as the incorporation of AIS into the existing GPS, the development of Differential Global Positioning Systems (DGPS), and the integration of enhanced bidirectional and interactive data processing into piloting scheduling systems. Moreover, China pushed forward the application of FSA into piloting security management nationwide and, therefore, dramatically improved the safety and security of piloting services. Some piloting stations also conducted simulated experiments operated by computers, applying the results in real-world situations only after obtaining reliable data.

The establishment of the China Maritime Pilots Association has promoted the development of piloting services.

48 To enhance self-disciplined management within the pilotage industry as well as independent management of pilotage services, the MOT started to prepare for the establishment of the China Maritime Pilots Association in 2007. Officially founded on January 8, 2008 this organization laid the foundation for improving the management system, building a self-disciplined pilotage sector, and promoting the development of pilotage overall.

Canada

With the aim of regulating pilotage services, Canada drew up the Pilotage Act, which established Pilotage Authorities whose objectives are to establish, operate, maintain, and administer in the interests of safety and efficient pilotage services within the region.

According to the Canadian Pilotage Act, the Crown Corporation brought 4 pilotage authorities into operation, including the Atlantic Pilotage Authority, Laurentian Pilotage Authority, Great Lakes Pilotage, and Pacific Pilotage. These self-funded organizations are engaged in pilotage services in designated areas.

As of the end of 2007, Canada had a total number of 415 pilots and piloted 52,413 ships, down by 1.41% over 2006 (53,164 ships). Table 28 shows the number of Canadian pilots from 1999 to 2007.

Table 30 Statistics of the employment of Canadian Pilotage Authorities (Person)

Year 1999 2000 2001 2002 2003 2004 2005 2006 2007

GLPA

Administration Staff 10 10 11 11 11 8 9 9 10

Pilots1 67 69 69 62 62 61 60 61 61

Others2 9 9 9 9 9 9 9 9 9

Total 86 88 89 82 82 78 77 79 80

APA

Administration Staff 7 7 8 8 8 10 10 10 11

Pilots1 52 52 55 54 54 54 54 54 56

Others2 17 19 19 19 18 19 19 19 18

Total 76 78 82 81 80 83 83 83 85

49

LPA

Administration Staff 15 15 15 14 14 13 13 13 13

Pilots1 176 173 177 173 172 170 174 175 190

Others2 29 30 30 30 29 29 28 30 30

Total 220 218 222 217 215 212 215 218 233

PPA

Administration Staff 12 12 12 12 12 12 12 12 12

Pilots1 115 116 114 114 110 110 110 109 108

Others2 40 40 40 37 37 37 37 37 37

Total 167 168 166 163 159 159 159 158 157

Pilotage Authorities, Canada.

Administration Staff 44 44 46 45 45 43 44 44 46

Pilots1 410 410 415 403 398 395 398 399 415

Others2 95 98 98 95 93 94 93 95 94

Total 549 552 559 543 536 532 534 538 555

Notes： 1 The contract pilots included. 2 Including those providing dispatching, piloting ferries and other services.

Source: Pilotage Authorities, Canada.

Table 31 Total pilotage assignments and assignments per pilot in Canada

Pilotage Indicators 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Authorities Total Assignments 9 11 11 11 11 12 11 11 10 9 726 090 498 751 804 510 848 690 041 799 APA Assignments per 187 213 229 240 231 223 219 216 183 75 Pilot

50 Total Assignments 22 21 20 18 19 19 20 22 23 23 018 654 713 655 149 599 439 197 247 162 LPA Assignments per 121 120 114 96 111 114 120 128 133 122 Pilot Total Assignments 9 8 8 7 7 5 6 6 6 6 085 108 605 151 510 943 628 443 931 440 GLPA Assignments per 147 118 106 106 119 94 107 108 113 103 Pilot Total Assignments 13 13 14 13 12 12 13 13 12 13 267 776 585 435 655 952 002 219 945 012 PPA Assignments per 115 117 130 118 116 118 110 120 123 125 Pilot Total Assignments 54 54 55 50 51 51 51 53 53 52 Pilotage 096 628 402 992 118 004 917 549 164 413 Authorities Assignments per 132 131 129 120 129 123 131 135 134 122 Pilot

Source：Annual Report of Plotage Authorities, Canada.

Hong Kong, China

Pilotage in Hong Kong, China is regulated by statutory provisions, the relevant laws being the Pilotage Ordinance (Cap.84) and its subsidiary legislation. The Pilotage Ordinance was first enacted in December 1997 and required that, in Hong Kong, China, all vessels of 3,000 Gross Register Tons (GRT) or more must have a pilot onboard when navigating the port. Vessels of 1,000 GRT or more loaded with dangerous goods are also required to be piloted. The sole entity that provides pilotage in the port of Hong Kong, China is the Hong Kong Pilot‟s Association, which formally came into being in November 1965. Piloting service is available 24 hours a day, 7 days a week.

By the end of 2007, Hong Kong boasted a total of 102 pilots, including 76 senior pilots, and succeeded in directing 61,000 ships and vessels, up 3.4% from the year before (59,000 vessels). There were 24,000 ships with a length of 200 meters or more, an 11.6% year-on-year increase, and 15,000 ships with a length of 250 meters or more, growing by 11.1% over the previous year.

51 Report on Port Development of China, 2007

I. China’s Economy and Import/Export Trade

In 2007, China‟s high-speed economic growth contributed to a total GDP of 328,688,100 million US dollars, up by 11.9 % year-on-year (0.3 % higher than that of 2006). China boasted an economic growth rate of more than 10% for four years in a row from 2004 to 2007, making 2007 the fourth consecutive year that China boasted a double-digit economic growth rate. Table 1-1 China’s GDP for selected years （(Millions of dollars)）

Year 1980 1990 2000 2003 2004 2005 2006 2007

306 404 1 192 1 647 1 936 (e)2 282 (e)2 681 (e)3 325 Total GDP 520 494 836 918 502 554 265 678 per capital 312 358 956 1293 1510 (e)1769 (e)2066 (e)2517 GDP

Source: UNCTAD HANDBOOK OF STATISTICS 2008，UNCTAD secretariat

Table 1-2 Growth rates of China’s GDP (Percentage)

Year 80 -05 90 -00 90 -05 95 -05 00 -05 2004 2005 2006 2007

Total real GDP (e)9.9 10.6 (e)9.8 (e)8.9 (e)9.6 10.1 (e)10.4 (e)11.1 11.9

Per capital real GDP (e)8.7 9.5 (e)8.9 (e)8.0 (e)8.9 9.4 (e)9.7 (e)10.4 (e)10.7

Source: UNCTAD HANDBOOK OF STATISTICS 2008，UNCTAD Secretariat

In 2007, China saw a historical new high in the gross volume of foreign trade, amounting to 2.1738 trillion US dollars, an annual increase of 23.5%. Exports reached 1.218 trillion US dollars, increasing by 25.6%, and accounted for 6.46% of the world‟s total exports. Imports reached 955.8 billion dollars, up 20.7%, and made up approximately 6% of the world‟s total, an 0.8% growth rate increase.

In 2007, the EU maintained its position as China‟s largest trading partner with import and export trade volumes increasing significantly between the two. Trade volume in 2007 totaled 356.2 billion US dollars and grew by 27% over the previous year, which represented a 1.7

52 percentage point increase. Imports and exports totaled 111 billion and 245.2 billion US dollars and accounted for 22.4% and 29.2% of total trade, respectively. As China‟s second largest trading partner, the US experienced depressed growth and its economy slowed considerably. Accordingly, the growth rate of Sino-US import and export trade was 15%, down 9% year-on-year, while the total volume of imports and exports was 302.1 billion US dollars. It is worth mentioning that bilateral trade between China and Japan made remarkable progress in 2007 as a result of frequent exchange visits between Japanese and Chinese leaders who were able to successfully launch high-level economic dialogues. The total volume of foreign trade registered between the two was 236.1 billion US dollars, up by 13.9% annually (a 1.4% growth rate increase).

Table 1-3 Imports and exports for selected years

1980 1990 2000 2003 2004 2005 2006 2007

Exports (f.o.b.) - Exportations 18099 62091 249203 438228 593326 761953 969380 1218000 (f.a.b.) / Millions of dollars Exports (f.o.b) - Exportations (f.a.b.) 0.891 1.388 1.784 2.877 3.860 5.021 5.806 6.461 Share Percentage Imports (f.o.b.) - Importations 19941 53345 225094 412760 561229 659953 791605 955800 (f.a.b.) / Millions of dollars Imports (f.o.b) - Importations (f.a.b.) 0.962 2.079 1.486 2.525 3.383 4.429 5.311 5.931 Share Percentage

Source: UNCTAD HANDBOOK OF STATISTICS 2008，UNCTAD Secretariat

Table 1-4 Growth rates of imports and exports of China （Percentage）

80 80 90 90 95 00 2004 2005 2006 2007 -00 -05 -00 -05 -05 -05 Annual average growth rate of 14.7 15.5 14.5 16.4 17.5 26.7 35.4 28.4 27.2 25.6 exports（%） Annual average growth rate of 13.0 14.3 13.0 16.1 18.5 26.5 36.0 17.6 19.9 20.7 imports（%）

Source: UNCTAD HANDBOOK OF STATISTICS 2008，UNCTAD secretariat

53 Table 1-5 Total volume and growth rates of imports and exports of China to Main Nations and Regions, （(100 million US dollars)

Nations and Total Imports & Annual variation Annual variation Exports Imports Regions Exports (%) (%)

EU 3562 2452 29.2 1110 22.4

USA 3021 2327 14.4 694 17.2

Japan 2361 1021 11.4 1340 15.8

ASEAN 2026 942 32.1 1084 21

Hong Kong, China 1972 1844 18.8 128 18.9

Korea 1599 561 26.1 1038 15.6

Chinese Taipei 1245 235 13.1 1010 16

Russia 482 285 79.9 197 12.1

Australia 439 180 32.1 259 33.8

India 386 240 64.7 146 42.4

Source: Maritime Customs Administration, P.R.China

Source：Chinese Academy of Surveying and Mapping

54 II. Port Infrastructure

In 2007, China‟s investment in coastal and inland construction totaled 88.648 billion RMB and grew by 2.0%, or 1.729 billion RMB. Investment in coastal infrastructure construction grew to 72.011 billion RMB, a year-on-year increase of 1.7%, or 1.214 billion RMB. Similarly, investment in inland construction grew from 515 million RMB to 16.637 billion RMB, an annual increase of 3.2%.

As of the end of 2007, China boasted a total number of 35,947 production berths (494 more than the previous year), including 1,337 berths with handling capacities of over 10,000 tons each (134 more than in 2006). Coastal ports held 4,701 production berths, 190 more than in the previous year, and the number of berths with capacities of over 10,000 tons increased from 978 in 2006 to 1,078 in 2007. Inland ports held 31,246 production berths, 304 more than at the end of 2006, and the number of berths with capacities of over 10,000 tons increased from 225 in 2006 to 259 in 2007. These are located in the mainstreams of the Yangtze River (255) and the Pearl River Systems (4).

Among all berths with handling capacities of over 10,000 tons, 522 had capacities of 10,000 to 30,000 tons, 183 had capacities of 30,000 to 50,000 tons, 263 had capacities of 50,000 to 100,000 tons, and 110 had capacities of over 100,000 tons, increasing by 16, 17, 44, and 23, respectively.

As for inland berths with throughputs of 10,000 tons or more, there were 124 berths with handling capacities of 10,000 to 30,000 tons (not included), 81 berths with capacities of 30,000 to 50,000 tons (not included), and 52 berths with capacities of 50,000 to 100,000 tons (not included). These figures represent increases of 10, 12, and 12, respectively. There were 2 berths with cargo throughputs of 100,000 tons or more, the same number as the previous year.

Among all berths with handling capacities of 10,000 tons or more in 2007, there were 190 general bulk cargo berths, 309 general break bulk cargo berths, and 754 special-purpose berths, rising by 19, 20, and 75, respectively. For special-purpose berths, 63 of them were crude oil berths, 110 were petroleum product and LNG berths, 151 were coal berths, and 253 were container berths, increasing by 6, 6, 12, and 29, respectively, from 2006. The number of grain berths dropped from 32 in 2006 to 31 in 2007.

Costal Ports

In 2007, total investment in coastal construction stood at 72.011 billion RMB as China built or converted a total of 211 coastal berths and added 324,290,000 tons of throughput capacity. 114 of these berths had throughputs of 10,000 tons or more and total handling capacity increased by 30,790,000 tons. Moreover, construction of specialized terminals for coal, oil, mining, and containers made remarkable progress in reorganizing the structural layout of terminals.

55 As of December 2007, China had 151 coastal coal berths, 12 more than at the end of 2006. The North Coal-Shipping Port successfully completed Berths #31-#34 of the Jing-Tang Port Area at the Tangshan Port and made it fully operational. The Phase II expansion project of the Dumper Storehouse at the Huanghua Port and the Coal Export System of the Port of Rizhao yielded the following results: 4 new loading berths came into operation with productivity totaling 54 million tons and the Coal Handling Port Conversion Project was completed, adding 6 new handling berths for a total production capacity of 46.5 million tons.

In 2007, the Crude Oil Terminal Phase III project of the Port of Qingdao and Huade Crude Oil Terminal project of Port of Huizhou were completed in coastal areas. Both were large crude oil handing berths with throughputs of 30,000 tons and production capacities of 36 million tons. By the end of that year, China boasted 63 coastal crude oil berths and 110 petroleum product, oil, and LNG berths, each increasing by 6.

Concerning iron ore terminal construction in 2007, China built at its costal ports 4 handling berths with throughputs of 10,000 tons each as well as 11 quadratic loading berths, adding a production capacity of 45 million tons and 23 million tons, respectively. By the end of that year, the number of single-loading berths and berths with throughputs of 10,000 tons or more was 26 with a designed annual handling capacity of approximately 320 million tons. This was the first time it passed the 3 billion ton benchmark.

Great progress had been made in the area of container terminal construction, as demonstrated by the completion of the following projects: the Qingdao Qianwan China Merchants International Terminal (QQCMIT) Berth #2, the Yangshan Deepwater Port Area (Phase III, Stage A), and Phase III of the joint project at the Shenzhen and Yantian Ports. Similarly, the expansion and construction of the Ports of Tianjin, Yantai, and Xiamen were all notable achievements. As of December 2007, there were 252 container berths at coastal ports, 29 more than in 2006, and 219 of which were located in the Yangtze River Delta, the Surrounding Bohai Sea Zone, or the Pearl River Delta. That year, a sensible port layout and transport pattern began to take shape.

River Ports

In 2007, China succeeded in improving or constructing inland waterways totaling 594 kilometers in length. Furthermore, China built or converted a total of 160 berths at inland ports and added 75.6 million tons in terms of throughput capacity, including 9 berths with throughputs of 10,000 tons each. In total, handling capacity increased by over 21 million tons. Last but not least, infrastructure construction at leading river ports accelerated in 2007. The Chongqing Cuntan Working Zone Project: Phase I was launched into pilot operation, while Phase II made notable progress. Additionally, Phase I of the Jiangnan Tuokou Working Zone Project of the Chongqing Wanzhou Port Area was almost completely finished and Phase I of the Yueyang Port Chenglingji Port Area (Songyang Lake) Project began.

Aimed at promoting the sound development of the port industry, China made great efforts to

56 avoid unchecked construction and excessive competition, while working to conserve and optimize port and port shoreline resources. On June 27, 2007, the State Council approved the National Inland Waterway and Port Layout Planning, jointly complied by the National Development and Reform Commission and Ministry of Transport. The plan now serves as the framework for China‟s efforts to further integrate inland rivers and will work to develop a better and more comprehensive port layout structure that covers 20 provinces and cities nationwide from the years 2007 to 2012. By 2010, China will have two Major Routes in the Changjiang and Xijiang Rivers, the Great Canal, two high-level waterway networks in the Yangtze and Pearl River Deltas, and 18 main rivers and streams. The country will also possess 28 leading ports.

According to the Planning, inland waterways are comprised of high-level and other waterways and inland river ports are comprised of leading ports, regional leading ports, and common ports. A leading port network has materialized in recent years, composed of 28 river ports with regional primary cities as their centers. Specifically, these include Luzhou, Chongqing, Yichang, Jingzhou, Wuhan, Huangshi, Changsha, Yueyang, Nanchang, Jiujiang, Wuhu, Anqing, Maanshan, Hefei, Huzhou, Jiaxing, Jining, Xuzhou, Wuxi, Hangzhou, Bengbu, Nanning, Guigang, Wuzhou, Zhaoqing, Foshan, Haerbin, and Jiamusi.

Once the Planning has been implemented, China will develop a national inland waterway and port system with high-level waterways and leading ports as centers. Not only will it connect the first-class ports of 56 cities whose populations are 500,000 or more with 27 other countries, but it will also help promote the introduction of increasingly larger and more standardized ships while upgrading and modernizing the industrial structure. Combined with other modes of transportation, this inland waterway and port system will contribute to the establishment of a comprehensive transport system and enhanced transport capacity and cargo throughput along the river basins.

III. Port Production

In 2007, China experienced overall growth in waterway transport in terms of transport volume, turnover, and port cargo throughput. The nation‟s waterway cargo transport volume amounted to 2.812 billion tons and its cargo turnover to 6,428,485 million kilometers, increasing by 13.1% and 15.9%, respectively, over the previous year. The average length of freight traffic reached 2,286.1 kilometers, up 55.1 kilometers from the previous year. The freight volumes achieved by coastal, inland, and ocean transport also sustained overall growth in 2007, as the freight volume of coastal transport registered at 924 million tons and cargo turnover reached 1,204,583 million ton-kilometers, up by 18.2% and 21.9%, respectively, over the previous year. The cargo volume of inland waterway transport was 1.299 billion tons and cargo turnover was 355,312 ton-kilometers, annual increases of 11.9% and 17.4%, respectively. The cargo volume of ocean transport was recorded at 589 million tons and cargo turnover at 4,868,589 million ton-kilometers, representing annual increases of 8.3% and 14.3%.

57 Port cargo throughput experienced sustained growth.

In 2007, national port cargo throughput reached 6.410 billion tons, a year-on-year increase of 15.1％, and passenger volume and turnover stood at 0.228 billion persons and 7.778 billion persons, representing annual increases of 3.6% and 5.7%, respectively.

Cargo volume associated with coastal ports registered at 4.042 billion tons and with river ports at 2.368 billion tons, increasing by 14.5% and 16.1%, respectively, over 2006. The growth rate corresponding to cargo volume of foreign trade dropped somewhat to a figure lower than that of domestic trade. In 2007, the cargo throughout of foreign trade handled by all the ports totaled 1.849 billion tons, up by 14.6% over 2006, but down 3.5 percentage points from the previous year‟s growth rate. Costal ports contributed 1.691 billion tons to the national total, up 14.6%, while river ports were responsible for 158 million tons, up 14.1% over 2006. Additionally, the Ports of Yingkou and Yantai edged into the world‟s top ports with throughout capacities of 100 million tons each, making China home to 14 100 million-ton ports in 2007.

In 2007, the passenger volume of China‟s ports totaled 206 million persons, down by 0.9% over 2006. Coastal ports handled a total passenger throughput of 75.18 million persons, a 6.4% year-on-year decline. However, river ports handled a passenger volume of 131 million persons, a year-on-year increase of 2.6%.

Table 3-1 Port throughputs of China, 2007

Index 2006 2007 Growth Rates（％）

1. Gross Cargo Throughput of Domestic 557034 640992 15.1 Ports (10,000 tons)

Coastal 353031 404178 14.5

River 204003 236814 16.1

2. Gross Volume of Foreign Trade of 161421 184921 14.6 Domestic Ports (10,000 tons)

Coastal 147548 169095 14.6

River 13873 15826 14.1

3. Gross Container Throughput of 9361 11444 22.3 Domestic Ports (10,000 TEUs)

Coastal 8579 10470 22.0

River 782 974 24.6

4. Gross Passenger Volume of Domestic 20796 20610 -0.9 Ports (10,000 persons)

58 Coastal 8035 7518 -6.4

2.6 River 12761 13092

Source: Ministry of Transport, P.R.China

Table 3-2 Cargo throughputs of 100 million-ton ports in China

Cargo Throughput in Cargo Throughput in Growth Ranking Ports 2007（100 million tons） 2006（100 million tons） Rates（%）

1 Shanghai 4.92 4.70 4.7

2 Ningbo-zhoushan 4.73 4.24 11.6

3 Guangzhou 3.43 3.03 13.2

4 Tianjin 3.09 2.58 19.8

5 Qingdao 2.65 2.24 18.3

6 Qinhuangdao 2.49 2.05 21.5

7 Dalian 2.23 2.00 11.5

8 Shenzhen 2.00 1.76 13.6

9 Suzhou 1.84 1.51 21.9

10 Rizhao 1.31 1.10 19.1

11 Nantong 1.23 1.04 18.3

12 Yingkou 1.22 0.95 28.4

13 Nanjing 1.09 1.01 7.9

14 Yantai 1.01 0.61 65.6

Source: Ministry of Transport, P.R.China

The year 2007 saw rapid growth in throughput of break bulk cargo, containers, and dry bulk cargo (coal, ore, and other bulk materials). By contrast, liquid break cargo grew relatively slowly in terms of throughput while ro-on/ro-off transport experienced negative growth. Break bulk cargo increased by 25.5% to 882 million tons, topping the list of the five major cargo types when judged by growth in cargo throughput in 2007. Ranked second was container cargo with a throughput of 1.095 billion tons, but an increase of only 23.2％ from the year before. Dry bulk cargo was third with a gross throughput of 3.565 billion tons and

59 annual growth rate of 13.5%. Fourth on the list was liquid break cargo with a gross throughput of 634 million tons, growing by 6.2% year-on-year. Last was ro-on/ro-off transport, which actually fell from 243 million tons to 235 million tons, down by 3.3% from 2006. Comparatively, throughput of dry break cargo, container, break bulk cargo, liquid break cargo, and ro-on/ro-off cars accounted for 55.6%, 17.1%, 13.8%, 9.9%, and 3.7%, respectively, of national total throughput.

Table 3-3 Port throughputs of five major types of cargo

Year 2002 2003 2004 2005 2006 2007 Type of Cargo throughput （100 million 15.3 17.76 23.35 27.56 31.4 35.65 tons） Dry bulk cargo Annual growth 17.50 16.10 31.50 18.00 13.9 13.5 rate（%）

percentage（%） 54.60 53.80 56.00 56.80 56.37 55.6

throughput （100 million 3.85 4.55 5.4 5.84 5.97 6.34 tons） Liquid bulk cargo Annual growth 10.20 18.20 18.70 8.10 2.0 6.2 rate（%）

percentage（%） 13.80 13.80 12.90 12.00 10.72 9.9

throughput （100 million 4.16 4.83 5.59 6.14 7.02 8.82 tons） Break bulk cargo Annual growth 6.10 16.10 15.70 10.00 14.3 25.5 rate（%）

percentage（%） 14.90 14.60 13.40 12.70 12.45 13.8

throughput （100 million 3.4 4.39 5.51 6.94 8.89 10.95 tons） container Annual growth 33.70 29.20 25.40 26.00 28 23.2 rate（%）

percentage（%） 12.10 13.30 13.20 14.30 15.96 17.1

throughput Ro-on/ro-off （100 million 1.28 1.44 1.87 2.05 2.43 2.35 Cars tons） Annual growth 24.30 12.30 30.10 9.70 18.2 -3.3 rate（%）

60 percentage（%） 4.60 4.40 4.50 4.20 4.36 3.7

Source: Ministry of Transport, P.R.China

Container throughput maintained a high rate of growth in 2007.

The freight volume of China‟s containers registered at 29.5342 million TEUs with a tonnage of 333.5492 million tons, these figures rising by 26.8％ and 29.4％，respectively, from 2006. Accordingly, these growth rates were 6.7 and 12.2 percentage points higher than in 2006. The number of container ports with throughputs of over 1 million TEUs rose from 14 in 2006 to 16 in 2007. Shanghai continued to maintain its dominant position among domestic ports in terms of container throughout and edged into second place among the world‟s container ports for the first time by outstripping Hong Kong. Shenzhen followed closely after, surpassing the 20 million TEU mark, and Guangzhou recorded a growth rate of 39.1%，as throughout jumped to 9 million TEUs to rank below the Qingdao and Ningbo-Zhoushan Ports. Both Lianyungang and Suzhou maintained growth rates of over 50%, placing them 9th and 10th, respectively.

Table 3-4 Container throughputs of ports of a carrying capacity of 1 million TEUs in China, 2007

Container Container Throughput:2007 Growth Ranking Ports Throughput:2006 （10,000 TEU） Rates（%） （10,000 TEU）

1 Shanghai 2615 2172 20.4

2 Shenzhen 2110 1847 14.3

3 Qingdao 946 770 22.9

4 Ningbo-zhoushan 943 714 32.2

5 Guangzhou 926 666 39.1

6 Tianjin 710 595 19.4

7 Xiamen 463 401 15.3

8 Dalian 381 321 18.7

9 Lianyungang 200 130 53.8

10 Suzhou 190 124 52.6

61 11 Yingkou 137 101 35.6

12 Zhongshan 127 113 12.4

13 Yantai 125 105 19.1

14 Fuzhou 120 101 18.8

15 Nanjing 106 80 32.5

16 Quanzhou 102 84 21.4

Source: Ministry of Transport, China

Coal Transportation

In 2007, China demonstrated its strong demand for coal, as output registered at 2.523 billion tons, increasing 8.2% from 2005. Likewise, the total shipment of coal through ports continued to grow at a fast rate. In 2007, China‟s main ports transported 470 million tons of coal, increasing by 15.4% year-on-year. Qinhuangdao, Cangzhou (Huanghua), and Tianjin shipped a combined 370 million tons and controlled 87% of the national total when measured by quantity of shipment. The year also witnessed a continued increase in imports with the national total of imported coal reaching 30 million tons, a year-on-year increase of 23.9%. However, the amount of exported coal was only 54.25 million tons, a year-on-year decline of 12.6%.

Table 3-5 Waterway transportation of coal in main ports of China (10 thousand tons)

2007 2006 2005

No. Port Transport Growth Transport Growth Transport Volume Rate(%) Volume Rate(%) Volume

1 Qinhuangdao 20975.1 19.1 17614.6 21.7 14470.1

Cangzhou 2 8170 1.7 8036.7 20.2 6686.1 （Huanghua）

3 Tianjin 7621.1 27.3 5985.3 -13.2 6895.5

4 Rizhao 1442.5 -14.1 1678.5 -14.0 1951.7

5 Tangshan（Jinggang） 1426.5 1.7 1402.5 3.2 1359

6 Lianyungang 794.9 -30.4 1141.4 -0.5 1147.1

62 7 Qingdao 1093.2 19.8 912.3 14.7 795.6

Total of 7 Ports in North China 41523.3 12.9 36771.3 10.4 33305.1

8 Jinzhou 590.7 103.3 290.5 -15.7 344.6

9 Nanjing 563.5 30.1 433.1 1.3 427.5

10 Yingkou 328.8 115.0 152.9 -51.3 314

11 Yantai 121.6 31.6 92.4 -- --

12 Fangcheng 31.5 -32.5 46.7 -18.6 57.4

13 Longku 43.1 105.2 21 -83.0 123.5

Total of Coastal Ports 1679.2 62.0 1036.6 -18.2 1267

14 Wuhu 747.5 -6.3 797.4 -5.0 839.4

15 Wuhan 454.2 7.3 423.4 42.0 298.2

16 Yichang 175.9 61.8 108.7 4.1 104.4

17 Jiujiang 2.1 -92.0 26.3 -46.3 49

Total of 4 Ports 1379.7 1.8 1355.8 5.0 1291 of Yangtze River

18 Xuzhou 1913.9 29.4 1478.9 25.9 1174.3

Total 46496.1 14.4 40642.6 9.6 37037.4

Note： -- Not Available Source：Report on China Port Development 2007-2008, China Ports and Harbours Association.

Iron Ore Transport In 2007, although output of crude steel, steel products, and pig iron experienced declines in growth rates, demand for iron ore increased. The total tonnage of imported metallic ore handled by China‟s main ports hit 420 million tons, up 17.7% over the previous year. Moreover, China imported 380 million tons of iron ore, an increase of 17.4% from 2006 (the 2007 growth rate was similar to that of 2006). Shipments from the Hainan Mine grew at a relatively small rate and total domestic trade stood at 3.01 million tons, up by 3.4% from 2006.

The year 2007 also witnessed the operationalization of special-purpose terminals for iron ore at such ports as Dalian, Yingkou, Rizhao, Zhanjiang, and Fangcheng. Thus, imports of iron ore were dispersed among these, causing second-stage transfer volume to decline that year. After the iron ore terminal of the Port of Tangshan‟s Caofeidian Port Area began operations, its handling capacity, together with that of the Ports of Dalian and Yingkou, was able to meet the demand in North and North-east China for imported iron ore. As a result, second stage transfer volume experienced a substantial decline at the Ports of Tianjin and Qingdao, as they

63 had previously handled imported iron ore headed for these regions.

Meanwhile, as steel corporations along the Yangtze River increased output and expanded capacity, iron ore shipments along major routes increased at high rates, with total throughput reaching 150 million tons (accounting for 23.1% of total cargo throughput along the Yangtze River), up by 31% from 2006.

Table 3-6 Tonnage of imported iron ore handled at main ports of China

2007 2006 2005

Handling Handling Handling No. Port Growth Growth Capacity Capacity Capacity Rate (%) Rate (%) (10,000 tons) (10,000 tons) (10,000 tons)

1 Qingdao 6089.7 5.7 5762.4 20.8 4770.1

2 Rizhao 5828.8 11.8 5213.4 60.3 3252.3

3 Tianjin 4297.6 9.1 3939.8 4.4 3774.4

4 Ningbo 3586.8 -3.1 3700.2 4.2 3549.5

5 Shanghai 2804.6 6.8 2627.1 15.5 2275.1

6 Zhoushan 2138.3 8.5 1971.5 50.2 1312.5

7 Zhanjiang 1587.3 0.7 1575.6 34.4 1172.4

8 Lianyungang 1070.1 -1.2 1083.5 6.4 1018.1

Tangshan(Jingtang) 1458.7 24.7 1169.6 69.7 689.4 9 Tangshan (Caofeidian) 2057 ------

10 Yantai 970.4 8.5 894.4 -4.7 938.3

11 Fangcheng 929.9 5.7 880 70.5 516

12 Yingkou 1182 44.0 820.8 -19.3 1016.9

13 Dalian 996.9 44.2 691.2 -15.7 820

14 Qinhuangdao 539.3 -12.2 614.4 -31.7 900

15 Shenzhen 595.4 183.7 209.9 -- --

16 Guangzhou 178.8 -13.6 206.9 13.5 182.3

17 Xiamen 164.3 ------

18 Jinzhou 75.1 96.1 38.3 -31.0 55.5

19 Others -- -- 420.9 -- --

64 Total of Coastal Ports 36551 14.9 31819.9 -0.7 32048.2

20 Nantong 897.2 155.2 351.6 51.6 232

21 Zhenjiang 296 59.5 185.6 -29.6 263.5

22 Zhangjiagang 223.4 32.7 168.4 133.6 72.1

23 Nanjing -- -- 39.7 -65.8 116. 2

Total of ports of Yangtze 1416.6 90.1 745.3 9.3 681.6 River

Total 37967.6 16.6 32565.2 -0.7 32794.3

Notes： -- Not Available Source：Report on China Port Development 2007-2008, China Ports and Harbours Association.

Crude Oil Transportation

In 2007, consumption of crude oil in China reached 346 million tons for an annual increase of 7.3%. Imports and exports of crude oil totaled 187 million and 163 million tons and increased by 1.1% and 12.4%, respectively. Among all domestic coastal ports in 2007, Ningbo-Zhoushan, Qingdao, and Tianjin were the top 3 when measured by handling capacity of crude oil. Ningbo-Zhoushan registered a total oil throughput of 81.75 million tons, down by 0.5% year-on-year. Qingdao recorded a total oil tonnage of 44.046 million, up by 25.1% year-on-year. Finally, Tianjin‟s total oil throughput was 26.378 million tons, up 16% year-on-year.

Table 3-7 Tonnage of crude oil handled at main coastal oil ports （(10 thousand tons)

2007 2006 2005

Handling Handling Growth No. Port Growth Rate Handling Capacity Capacity Rate (%) Capacity (%)

1 Ningbo-Zhoushan 8175 -0.5 8213 6.7 7695.8

2 Qingdao 4404.6 25.1 3519 13 3115

3 Tianjin 2637.8 16 2274 11.1 2046

4 Dalian 2288.2 5.5 2169 10.4 1965

5 Zhanjiang 1866 7.2 1740 70.5 1020

6 Nanjing 1082.9 -42 1867 -38.1 3017

65 7 Qinhuangdao 751.0 103.0 370 114.6 172.4

8 Guangzhou 454.9 2 446 27.4 350

9 Shanghai 401.6 -15.1 473 -16.7 568

Total 22061.76 4.7 21071 5.6 19949.2

Note： - Not Available Source：Report on China Port Development 2007-2008, China Ports and Harbours Association.

IV. Port Management

According to incomplete statistics, China has a total of 15,000 people engaged in port administrative management, 40% of whom are working at coastal ports and 60% at river ports. Two thirds of the administrative management have obtained degrees from junior colleges or beyond. Port and shipping management plays an important role in the larger sphere of industrial management and professionals are ready to meet the challenges that arise from the restructuring and reform of these fields.

The restructuring and reform of the port management system was deepened.

The Ministry of Transport (MOT) continued the restructuring and reform of the port management system in 2007, evidenced by various efforts and achievements. First, the restructuring of the pilotage services management system took place nationwide. The MOT issued the “Implementing Programme for Regulation on Piloting Services in the Yangtze River” in order to regulate the piloting services system along the Yangtze River. Second, concerned about port construction charges, the Ministry held an extraordinary meeting to address this and related issues. Likewise, the MOT held a workshop on national port construction charges and initiated a special campaign to collect port construction charges targeted at wharf owners by regulating prices for handling operations related to the domestic trade of containers and both domestic and foreign trade of ore.

Meanwhile, the MOT placed great emphasis on port facilities security, as it held the Working Meeting on Port Facilities Security along with “China‟s Port Facilities Security Drill in 2007: the Implementation of the SOLAS Convention”. Additionally, it prepared training materials on port safety and security and drafted the Guidelines for Port Safety and Security. The MOT also conducted research on key technologies for conserving resources and reducing discharges from container and break cargo terminals, issuing its “Recommendations on How to Implement the Energy Conservation & Emission Reduction Programme”.

Management of port planning was enhanced and standardized.

The Ministry of Transport aims to regulate port planning, utilize port resources wisely, and promote the sound and sustainable development of the port industry. Based on the Port Law

66 of P.R.C, the Ministry came up with “Provisions on Management of Port Planning”, which went into effect on February 1, 2008. In line with these Provisions, the compilation, approval, and implementation of port planning shall follow strict procedures with clearly identified responsibilities. Simultaneously, port planning is geared to meet several general requirements, namely adapting to economic development and the national industrial layout, facilitating development of the transportation system, and optimizing resource allocation to help promote port modernization. In addition, for the purpose of being people-friendly and highly efficient, the Provisions granted local governments the authority to approve port planning after being given any necessary details. As for planning revisions, there should be a simplified amendment procedure.

Management of port construction was further reinforced.

In order to reinforce port construction, the MOT strengthened port construction regulations in 2007, laying a strong foundation for port administration to assert itself in port management. In April 2007, the Ministry issued the “Administrative Provisions on Port Construction”, which took effect on June 1. This both outlined the respective responsibilities of port administration at all levels and standardized port construction and administration so as to provide a sufficient framework for improving the administrative system and development of port construction. The MOT also drafted the “Administrative Provisions on Infrastructure Construction of Institutions under the Leadership of the MOT” and the “Administrative Provisions on the Honest Bidding of Waterway Construction Projects”.

Meanwhile, the Ministry reviewed the “Provisions on Drawing up Preliminary Design Documents for Port Construction Project” and “Provisions on Drawing up Preliminary Design Documents for Waterway Construction Projects”, singling out 10 pilot projects for advisory and review. According to national administrative provisions on biding proposals, the MOT established a database of experts on bidding evaluation as well as regulation for biding and tendering costal port construction projects. All of this was done as a means of enhancing regulation over the bidding and tendering processes and ensuring that tendering and bidding activities conform to the principles of openness, fairness, impartiality, and good faith. The Ministry also held the 5th session of a training workshop for experts and carried out research and development on the MIS of a database of experts in waterway construction, through which it can select qualified individuals via the internet.

The work on Port Dues and Charges was carried out in an orderly manner.

In July 2007, the Ministry of Transport held a workshop on national port construction charges and drafted the Administrative Measures on Port Construction Charges Collection, according to which the MOT would improve methods of collecting and managing port construction charges and come up with policies to mobilize commission charge collectors and management. Meanwhile, given the present situation regarding port charges at domestic ports, the MOT initiated a campaign specifically targeted at wharf owners on collecting port construction charges and it began regulating prices for handling operations related to the domestic trade of

67 containers and both domestic and foreign trade of ore.

V. Port Safety and Security

The Ministry of Transport of the P.R. China took the opportunity presented by the 2008 Beijing Olympics Games to reinforce its efforts in providing a port safety system. First, it accelerated its efforts in building a national information system related to port safety and security as well as a port emergency response system. Accordingly, it offered guidance to local ports on adopting the best practices for safe operation and made preparations for flood and typhoon protection to ensure the safety of port handling operations. Second, the MOT strengthened its efforts to secure port facilities nationwide in 2007. It held the Working Meeting on Port Facilities Security in October 2007, which reviewed the achievement of implementation of the ISPS Code and previewed the work to be undertaken in the near future so as to meet emerging requirements. Moreover, the Ministry and the Shanghai Municipal People's Government jointly held the “Port Facilities Drill-2007: Implementation of the SOLAS Convention of the P. R. China” successfully in the Yangshan Deepwater Port area of the Shanghai International Shipping Center.

In addition, China has accelerated its development of a port security information system. It has finished outlining the framework and identifying benchmarks and has also begun constructing a pilot project. Under its Statement of Compliance, the Ministry has initiated interactive inspections among various port facilities nationwide. In December, 2007, the MOT amended and promulgated the National Port Facilities Security Code of the People’s Republic of China as the set of regulations governing port facilities security work, laying out new guidelines for procedure and substance in this regard. For instance, it has simplified the procedures to formulate and approve the Port Facilities Security Assessment Report and the Port Facilities Security Plan and has specified those rules for the application and annual verification of the Compliance Statement of Port Facilities Security. Additionally, it further identifies the responsibilities of the administrative authorities at all levels in the transport and port sectors in implementing the Code. Finally, it adds new elements to the previous version, ranging from setting and communicating the security levels of port facilities to security information and contact with supervision to inspection and legal responsibilities. Overall, it serves as the institutional framework for China to better protect international supply chain security. By the end of 2007, a total of 773 berths in 13 provinces have passed the assessments from the Port Facilities Security Assessment Expert Group and have acquired compliance statements, accordingly.

Table 5-1 Classified statistics of the Statements of Compliance on Port Facilities Security in China, by types of cargo

Oil Provinces Break Bulk & Watereay/ Product/ /Municipality Container Passenger Anchorage Others Total Chemicals bulk General

68 Liaoning 8 10 3 15 10 5 1 52

Hebei 1 6 0 2 12 0 0 21

Tianjin 5 9 1 5 6 0 0 26

Shandong 7 12 5 3 27 0 1 55

Jiangsu 13 67 0 33 35 1 5 154

Shanghai 9 21 2 10 13 1 19 75

Zhejiang 7 28 1 18 11 5 12 82

Fujian 22 23 1 24 23 11 2 105

Guangdong 36 57 3 11 35 6 7 155

Guangxi 2 9 0 1 5 2 1 20

Hainan 1 9 1 1 5 0 0 17

Anhui 1 1 0 4 3 1 0 10

Jianxi 0 0 0 1 0 0 0 1

Total 109 245 17 119 178 32 41 773

Source：Ministry of Transport of P.R.China

VI. Port Services

1. Logistics Services

Fueled by economic development, China‟s total social logistics recorded high growth.

In 2007，with sustained and explosive economic growth, many logistics related businesses grew at high rates and, in China, the total demand for logistics services increased tremendously, thereby boosting development of the logistics sector (see Table 27). Meanwhile, central and local governments attached great importance to the logistics industry, creating a favorable environment for its growth and expansion. In 2007, the Ministry of Human Resources and Social Security of the P.R.C. and the China Federation of Logistics and Purchasing jointly held a Recognition Event to award outstanding groups and individuals who had made significant contributions to the growth of the logistics sector. This event celebrated the achievements and accomplishments of the industry and highlighted the importance of a

69 favorable environment for the advancement of the industry as a whole.

Table 6-1 Growth of the logistics related industry, 2007

Amount Item Growth Rate（%） （billion CNY） Total Added Value of Industrial output 10736.7 13.5 Total Added Value of the Construction 1401.4 12.6 Industry Gross fixed asset investment 13723.9 24.8

total retail sales of consumer goods 8921.0 16.8

production material gross sales 2.21 19.8

The logistics industry has become an important factor underpinning the growth of the Chinese economy. China‟s logistics demand coefficient, or the total value of logistics to GNP, rose to 3.2 in 2007, up from 2.8 in 2006. The China Federation of Logistics & Purchasing estimated that the total value of social logistics in China reached 74.8 trillion RMB, up 25.5% year-on-year, and the added value of its domestic logistics industry hit 1.68 trillion RMB, up 18.8% (yearly growth rates were up by 1.5 and 6.3 percentage points, respectively). The added value of the logistics industry represented 17.1% of total added value of the domestic service industry and 6.8% of GDP, rising from 17.5% and 6.7%, respectively, from 2006.

The shipping logistics sector experienced vigorous development.

Within the general context of prosperity for the logistics sector and an increase in port output, shipping logistics enterprises seized opportunities to enhance strategic cooperation with manufacturers and international shipping powers. On April 18, 2007, the China National Foreign Trade Transportation (Group) Corporation (SINOTRANS) established a strategic cooperative logistics partnership with Sinochem Corporation (Sinochem). On August 4, China Ocean Shipping (Group) Company (COSCO) signed a contract for iron ore transportation with a 20-year term of validity with Baosteel Group Corporation (Baosteel). On November 1, China Shipping (Group) Corporation signed a package of agreements with Maersk in the field of multi-mode, logistics, and container services.

According to the 2007 Survey Report on Logistics Statistics of Key Enterprises in China recently released by the National Development and Reform Commission and the National Bureau of Statistics, COSCO, CSCL and SINOTRANS Shipping ranked 1st, 2nd, and 3rd in China‟s logistics industry.

On December 29, 2007, the MOT issued “Recommendations on Accelerating the Development of Modern Transport Industry” (No. 761 MOT [2007]). It set aside a special chapter entitled “To Promote the Development of Modern Logistics Industry” in order to shed light on the future of China‟s modern logistics industry.

70

With the development of regional cooperation on logistics issues, port logistics will continue to thrive.

In 2007, two provinces and one city in the Yangtze River Delta started the Joint Meeting System on modern logistics development and outlined measures to promote linkages of modern logistics within the Yangtze River Delta. New agreements were concluded among logistics corporations from Beijing, Tianjin, and Hebei Province. The logistics associations in Sichuan, Hubei, Zhejiang, Chongqing, Yunnan, Xinjiang, and Guangzhou jointly agreed upon “the Sichuan Declaration on Facilitation of Logistics Cooperation”. Twenty river cities signed an agreement on the “Generalized System of Preferences (GSP)”, which is concerned with customs clearances, charges, and calling operations within the region and covers provinces such as Anhui, Jiangsu, and Jiangxi. Under the concerted efforts of local governments and logistics corporations, a regional logistics center and an international shipping center are under development in the pan-Pearl River Delta, the Yangtze River delta, and the Yangtze valley. This will serve as a good platform for promoting further development of China‟s port logistic services.

2. Pilotage Service

Pilotage service experienced sustained growth.

In 2007, the number of ships piloted by national pilotage services stood at 298,400, a rise of 9.4% over 2006. Of these 266,700 ships were handled by coastal ports and 31,700 by inland ports. Among all ships piloted, container ships totaled 96,500, while special-purpose ships and super-ships totaled 51,400, accounting for 33.3% and 17.2% of the total, respectively.

Table 6-2 List of top 10 piloting services measured by the quantity of ships piloted

Ranking Organzition Ships Piloted（no.）

1 Port of Shanghai 59753

2 Yangtze River Pilot Center 31703

3 Port of Shenzhen 24335

4 Port of Tianjin 23702

5 Ningbo-Zhoushan Port 28800

6 Port of QingDao 20514

7 Port of Dalian 14673

8 Port of Guangzhou 12099

71 9 Port of Xiamen 8644

10 Port of Rizhao 6994

Source: Ministry of Transport, P.R.China

Great progress has been made in upgrading the pilot hierarchy.

As of December 2007, China had a total number of 43 piloting services, 8 of which piloted over 10,000 vessels annually, and a total of 1,479 pilots, accounting for 1/7 of the world‟s total. China established a strict evaluation system to determine the hierarchical structure for pilots, including senior pilots, first-class pilots, second-class pilots, third-class pilots, assistant pilots, and associate pilots. Under this hierarchy, China had 296 senior pilots at an average age of 49, 224 first-class pilots at an average age of 40, 300 second-class pilots at an average age of 37, 317 third-class pilots at an average age of 31, and 345 assistant and associate pilots at an average age of 26. Senior and first-class pilots accounted for 20% and 15%, respectively, of the national total.

Up to now, China has maintained a reasonable pilot group structure and has been able to pilot 6th generation container ships to arrive at and depart from ports 24 hours a day. It is capable of piloting all types of ships, ranging from luxury passenger lines to special purpose construction ships to offshore drilling platforms and warships. Additionally, it can conduct piloting missions to respond to emergencies under various complicated circumstances.

The modernization of piloting facilities, plants, and equipment and technology has proceeded quickly.

In 2007, port construction accelerated and increasingly larger ships and higher density vessel calls were all issues confronting ports. Accordingly, ports were committed to improving and renewing their piloting facilities and equipment to address these challenges. It was common practice for many ports to install radar navigation systems and ultrasonic speed meters for vessel calls in the VTS, which proved helpful to ensure quality piloting services for vessels in adverse weather conditions. Meanwhile, piloting services reinforced their efforts in conducting scientific research and development and the comprehensive application of such, exhibited by achievements such as the incorporation of AIS into the existing GPS, the development of Differential Global Positioning Systems (DGPS), and the integration of enhanced bidirectional and interactive data processing into piloting scheduling systems. Moreover, China pushed forward the application of FSA into piloting security management nationwide and, therefore, dramatically improved the safety and security of piloting services. Some piloting stations also conducted simulated experiments operated by computers, applying the results in real-world situations only after obtaining reliable data.

The establishment of the China Maritime Pilots Association has promoted the development of piloting services.

72

To enhance self-disciplined management within the pilotage industry as well as independent management of pilotage services, the MOT started to prepare for the establishment of the China Maritime Pilots Association in 2007. Officially founded on January 8, 2008 this organization laid the foundation for improving the management system, building a self-disciplined pilotage sector, and promoting the development of pilotage overall.

3. Tally Services

Since 2002, the MOT announced its “Circular on Restructuring of Ocean Shipping Tally Companies at all ports” and its “Circular on Issues Related to the Establishment of the Second Ocean Shipping Tally Company”. Both documents provided the framework and requirements for the restructuring of port tally services and the establishment of a second ocean shipping tally company at ports. The ongoing reform and restructuring of tally companies has heavily driven the development of tally services, with a tally services network having materialized under the direction of the China Ocean Shipping Tally Company and China United Tally Co., Ltd.. As of December 2007, the China Ocean Shipping Tally Company restructured 42 of its subsidiaries and the China United Tally Co., Ltd. established second tally companies at 23 ports. As a result of these reforms, all tally companies operate independently according to law and are responsible for their own profits or losses. They have become legal entities that must meet the requirements of a modern enterprise system, showing that the port tally market is based on the principles of openness and fair competition.

In 2007, driven by the fast growth of port throughput, the volume of tally business grew steadily at China‟s ports.

Table 6.3 Volume of tally business in 2007

China Ocean Shipping Tally China United Tally Co., Index Unit Company Ltd.

Ships tallied quantity 305238 76386

Tonnage tallied 10,000 tons 78829 1753.45①

Containers tallies 10,000 TEU 7537 1187.70

Notes：

The tonnage tallied by China United Tally includes that of break bulk cargo.

Source：Ministry of Transport, P.R.China

73 Report on Port Development of Hong Kong, China, 2007

As the only port in Hong Kong, China, the Port of Hong Kong is among the world‟s best 3 natural ports, the other two being the Ports of San Francisco and Rio de Janeiro. Adjoined to the Pearl River Delta, the Port of Hong Kong is endowed with unique natural resources and is renowned for its ice-free deep waters. It covers a total area of 59.5 sq kilometers its average draught is around 10.9 meters, and its average width is approximately 1.6-9.6 kilometers. With 3 main entrances, a large ship with a draught of 12 meters can access the Lei Yue Mun freely. Hong Kong, China is located in an important position in the center of the Asia-Pacific Region and is the only point of access to Far-East marine trade. Over the years, the Port of Hong Kong has become a naturally safe port for ships and vessels.

In 1980, Hong Kong‟s container throughput surpassed that of the Port of Kobe to become the world‟s largest container port. In 1985, its container handling throughput exceeded that of the Port of New York and then became the world‟s top container handling port by overtaking the Port of Rotterdam in 1987. Hong Kong again topped the list of world container ports for two consecutive years in 1999 and 2000. However, it lost its position to the Port of Singapore and, later, the Port of Shanghai. The Port of Hong Kong has trade partnerships with more than 170 nations and regions and has become the main harbor of the Pearl River Delta, Southern China, and the Asia-Pacific region as a whole. In terms of gross tonnage of vessel calls, cargo throughput, and passenger volume, it ranks as one of the busiest and most effective seaports in the world.

I. The Economy and Foreign Trade of Hong Kong, China

Driven by the sustained development of the Chinese economy, Hong Kong also maintained steady economic growth with its GDP reaching 206.7 billion US dollars, an annual increase of 9.3% (2.6 percentage points higher than the 2006 growth rate).

Table 1-1 GDP of Hong Kong, China over selected years （(Millions of dollars)

Year 1990 2000 2003 2004 2005 2006 2007

Total GDP 75 934 168 754 158 364 165 743 (e)177 320 (e)189 200 (e)206 700 per capital GDP 13311 25330 22935 23740 (e)24806 (e) 26319 (e) 28478

Source: UNCTAD HANDBOOK OF STATISTICS 2008，UNCTAD Secretariat

74

Table 1-2 Growth rates of Hong Kong’s GDP over years (Percentage)

Year 80 -00 80 -05 90 -00 90 -05 95 -05 00 -05 2004 2005 2006 2007

Total real GDP 5.6 (e)5.1 4.3 (e)4.0 (e)3.5 (e)4.2 8.2 (e)7.0 (e)6.7 (e)9.3

Per capital real GDP 4.2 (e)3.7 2.7 (e)2.5 (e)2.1 (e)3.0 7.0 (e)6.0 (e)6.1 (e)8.2

Source: UNCTAD HANDBOOK OF STATISTICS 2008，UNCTAD Secretariat

Hong Kong, China‟s total volume of foreign trade was 2.793 billion tons in 2006, up 2.5% over 2005, which includes gross imports of 1.637 billion tons and exports of 1.157 billion tons. The total volume of foreign trade of Hong Kong reached 2.828 billion tons, increasing 1.2% over 2007, including total imports of 1.613 billion tons and exports of 1.215 billion tons. Hong Kong, China has maintained several trading partners throughout the years, namely China, Japan, the United States, Chinese Taipei, and Singapore.

Hong Kong‟s waterway cargo volume totaled 2.452 billion tons in 2007, accounting for 86.8% of the comprehensive transport system.

Table 1-3 Imports and exports of Hong Kong, China

1990 2000 2003 2004 2005 2006 2007

Exports (f.o.b.) - Exportations (f.a.b.) / 82160 201860 223762 259260 289337 322669 344629 Millions of dollars

Exports (f.o.b) - Exportations (f.a.b.) / 2.361 3.127 2.965 2.823 2.762 2.669 2.491 Share Percentage

Imports (f.o.b.) - Importations (f.a.b.) / 82490 212805 231896 271074 299533 334681 367864 Millions of dollars

Imports (f.o.b) - Importations (f.a.b.) / 2.298 3.198 2.984 2.865 2.780 2.713 2.617 Share Percentage

Source: UNCTAD HANDBOOK OF STATISTICS 2008，UNCTAD Secretariat

75

Table 1-4 Growth rates of exports and imports (Percentage)

80 80 90 90 95 00 2004 2005 2006 2007 -00 -05 -00 -05 -05 -05 Annual average growth 14.5 12.0 8.3 6.7 4.5 8.5 15.9 11.6 11.5 6.8 rates of exports Annual average growth 14.4 12.0 8.8 6.8 3.8 8.1 16.9 10.5 11.7 9.9 rates of imports

Source: UNCTAD HANDBOOK OF STATISTICS 2008，UNCTAD Secretariat

II. Port Infrastructure

Hong Kong, China boasts a coastline totaling 733 kilometers and combined waterways stretching 73 kilometers. It possesses seaward waterways of 4 to 16.5 meters, (15.5 to 60 meters deep and 420 to 2750 meters wide). Hong Kong also has a total of 110 quay berths, all of which are production berths. The total berth length at the Port of Hong Kong was 12,750 meters. There are 60 deep-water berths with throughput capacities of 10,000 tons or more and 50 deep-water berths with handling capacities of 100,000 tons. The annual comprehensive throughput capacity of the Port of Hong Kong is 400 million tons with a total container throughput of 20 million TEUs and a passenger throughput of 28 million persons.

All terminals at the Port of Hong Kong boast a combined total of 200 buoys and 24 anchorage grounds, 14 of which are for production and the largest capacity of which has an anchorage of 50 million tons. To ensure the safety of shipping transport, the Port of Hong Kong maintains four forms of assistance for navigation, including lighted buoys, lighted beacons, a racon, and fog horns. In 2007, great changes occurred in Hong Kong‟s navigational aid system. Two lighted buoys to the East and West of Queen‟s Pier were permanently dismantled and several other mechanisms were damaged. At the same time, however, the Port installed 6 new lighted beacons and improved many of the existing ones in an effort to expand the range of light and reliability. By December 31, 2007, the Port of Hong Kong had 121 lighted buoys, 412 lighted beacons, 1 racon, and 7 fog horns.

Table 2-1 Aids to navigation in use

Name Number

1 Lighted Buoy 121

76 2 Lighted Beacon 412

3 Racon 1

4 Fog Horn 7

Source: Port of Hong Kong Statistical Table: 2007, Marine Department, Hong Kong SAR

III. Port Production Environment

Enterprises and Operating Environment In total, Hong Kong, China has 70 shipping lines and operates 70 international shipping lines, five of which have been listed on the stock market. Ships from most of the major international shipping lines use the Port of Hong Kong as one of their service ports and numerous major international shipping lines such as the Maersk Line, IMC Group, NYK Line, and MSC maintain branch offices in Hong Kong. Other major international shipping lines, such as the Oriental Overseas Container Line, are based in Hong Kong.

Table 3-1 Major listed corporations in Hong Kong involving port–related business

Total market value Earnings per Date on which Group listing Stock code of share share it was listed at end-2007 in 2007

HK$ 377,095 million HK$ 7.18 Hutchison Whampoa Limited 3 Jan 1978 13 (US$ 48,339 million) (US$ 0.92)

HK$ 100,001 million HK$ 5.37 The Wharf (Holdings) Limited not available 4 (US$ 12,819 million) (US$ 0.69)

China Merchants Holdings HK$ 116,696 million HK$ 1.50 (International) Company 15 Jul 1992 144 (US$ 14,959 million) (US$ 0.19) Limited

China Resources Enterprise, HK$ 79,898 million HK$ 2.09 not available 291 Limited (US$ 10,242 million) (US$ 0.27)

HK$46,694 million HK$ 1.49 COSCO Pacific Limited 19 Dec 1994 1199 (US$ 5,987 million) (US$ 0.19)

Source: Bloomberg

77

The full range of shipping-related services, including insurance, ship brokerage, maritime law, ship finance, etc. are readily available in Hong Kong, China. In addition, as Hong Kong has developed a strong legal system, all issues related to port operations are evaluated in accordance to specific laws and regulations. These serve as the foundation for all participants in the shipping markets. In 2007, Hong Kong, China amended two port related laws in order to better serve the development of the Port of Hong Kong.

Table 3-2 New maritime legislation, 2007

L.N.No. Title

287/2006 Merchant Shipping (Prevention of Pollution by Sewage) Regulation

8/2005; Merchant Shipping(Prevention and Control of Pollution) (Fees) Regulation 287/2006

Source: Port of Hong Kong Statistical Table: 2007, Marine Department, Hong Kong SAR

Port Operation Efficiency In Hong Kong, China responsibility for administration of the port is vested in the Director of Marine who heads the Transport and Housing Bureau‟s Marine Department. The Port Operations Committee advises him on all matters affecting the operational efficiency of the port with the exception of those operations under the purview of the Pilotage Advisory Committee and the Local Vessels Advisory Committee. The Port Development Council advises the Government on matters related to port planning and development, as well as the promotion of such. The Marine Department ensures that conditions exist to enable ships to enter the port, work their cargoes, and leave as quickly and as safely as possible. It maintains the Hong Kong Shipping Register and is concerned with many aspects of safety standards for all classes and types of vessels, from the largest container vessels to the smallest passenger-carrying sampans. It also provides aids to navigation and mooring buoys for sea-going ships, manages cross-boundary ferry terminals, and administers public cargo-working areas.

Registered Ships As of December 31, 2007, Hong Kong had a total of 1,227 registered ships with a gross tonnage of 36,315,538 tons and a net tonnage of 20,743,986 tons. In that year, 229 new vessels were registered and 152 ships cancelled their registrations, bringing the total number of ship registrations to 77 with an increment gross tonnage of 3,480,125 tons and an increment net tonnage of 1,819,282 tons. Table 3-3 Statistics on ships registered in Hong Kong, China in 2007

Gross No. Items No.of ships Net tonnage(1) tonnage(1)

78 Number of Ships and Tonnage as end of 1 1150 18 759 525 32 528 574 2007(2)

2 Ships Registered in 2007 229 3 807 345 7 028 505

3 Ships De-registered in 2007 152 1 988 063 3 548 380

4 Registered ships as of December 2007 1227 20 743 986 36 315 538

Notes： (1) Net and gross tonnages are in units of 100 cubic feet. (2) Due to alteration of tonnages of some ships already on register in 2006, 1+2-3 is not necessarily equal to 4.

Source：Port of Hong Kong Statistical Table: 2007, Marine Department, Hong Kong SAR

Table 3-4 Ship registered and de-registered in Hong Kong by ship type in 2007

Ship Registered Ship De-registered Ship Type No. of Ships Gross Tonnage No. of Ships Gross Tonnage

Bulk Carrier 63 2237456 68 1960163

Chemical Tanker 18 377751 4 35971

Container 48 1918674 13 228467

Gas Carrier 2 27233 5 27035

General Cargo Ship 31 330488 15 154081

High Speed Craft 5 3121 - -

Lighter and Barge 2 25216 4 26481

Oil Tanker 31 1210024 22 927639

Other Tanker 5 337126 1 3967

Ore/Bulk/ 8 387319 2 87880 Oil Carrier

Roll On/Roll Off 4 103960 3 94133

Specialized Vessel 2 67112 - -

Tug 3 2134 8 2277

Yacht 7 891 7 286

Total 229 7028505 152 3548380

79 Source: Port of Hong Kong Statistical Table: 2007, Marine Department, Hong Kong SAR

As of the end of 2007, among all registered ships in Hong Kong, 273 had tonnages of less than 5,000 tons each, accounting for merely 22.2% of the total and 47 ships had N.R.T‟s of 100,000 tons each, or 3.9% of the total.

Table 3-5 Ships registered in Hong Kong by Gross Tonnage distribution, as at end of 2007

Gross Tonnage Distribution No. of Ships Percentage（%）

Under 500 139 11.3

500 - 999 52 4.2

1 000 - 1 999 26 2.1

2 000 - 2 999 6 0.5

3 000 - 3 999 24 2.0

4 000 - 4 999 26 2.1

5 000 - 9 999 123 10.1

10 000 - 14 999 61 5.0

15 000 - 19 999 148 12.1

20 000 - 24 999 56 4.6

25 000 - 29 999 137 11.2

30 000 - 34 999 59 4.8

35 000 - 39 999 127 10.4

40 000 - 44 999 42 3.4

45 000 - 49 999 14 1.1

50 000 - 59 999 30 2.4

60 000 - 69 999 20 1.6

70 000 - 79 999 0 0.0

80 000 - 89 999 26 2.1

90 000 - 99 999 64 5.2

100 000-149999 18 1.5

80 Over 150 000 29 2.4

Total 1227 100.0

Source: Port of Hong Kong Statistical Table: 2007, Marine Department, Hong Kong SAR

Vessel Arrivals In 2007, with rapid growth in the economy and a continuing increase of trade, Hong Kong, China experienced a boom period in which port production flourished. Vessel calls recorded a figure of 228,010, down 1.3% year-on-year due to the introduction of larger ships into the port. However, the N.R.T. of vessel arrivals rose to 475,000 kilotons, an annual increase of 4.1%. Among all vessel arrivals, ocean vessels accounted for 16.3% at a total of 37,150, declining 4.8% from the year before. Cargo vessels numbered 33,460 in 2007, down 5.7% over 2006, and passenger vessels hit 3,690, an annual increase of 4.7%. The N.R.T. of ocean vessel arrivals reached 372,488 kilotons, up by 7.5% year-on-year, and that of river vessels amounted to 102,770 kilotons. Hong Kong also claimed 190,860 river vessels, including 108,950 cargo vessels and 81,910 passenger vessels.

Table 3-6 Statistics for vessel arrivals and annual growth rates in Hong Kong

Annual Growth Rate（%） Item 2002 2006 2007 2006-2007 2002-2007

River 32830 35490 33460 -5.7% +0.4%

River Ocean Vessel 2790 3520 3690 +4.7% +5.8%

Total 35620 39020 37150 -4.8% +0.8% Number of River Vessel 119520 116140 108950 -6.2% -1.8% Arrivals River River Vessel 63340 75810 81910 +8.1% +5.3%

Total 182870 191940 190860 -0.6% +0.9%

Total 218490 230960 228010 -1.3% +0.9%

Ocean Vessel 295285 346645 372488 +7.5% +4.8% N.R.T. of Vessel River Vessel 77130 109757 102770 -6.4% +5.9% Arrivals ('000 tons) Total 372415 456403 475258 +4.1% +5.0%

81 Source: Port of Hong Kong Statistical Table: 2007, Marine Department, Hong Kong SAR

Table 3-7 Vessel arrivals by month in 2007

Ocean Passenger River Passenger Ocean Cargo Vessel River Cargo Vessel Vessel Vessel Month Annual Annual Annual Annual No. No. No. No. variation (% variation(%) variation(%) variation(%)

Jan 3040 3.6 320 18.8 9470 -1.9 6430 0.1

Feb 2510 0.2 290 5.8 7110 -14.5 6500 7.9

March 3000 -1.4 350 8.0 9590 -11.1 6560 5.0

April 2670 -14.1 350 1.7 9500 -8.2 6810 4.5

May 2770 -4.0 330 11.2 9240 -3.9 6580 6.8

June 2710 -7.4 310 0.3 9310 -7.5 6340 6.7

July 2770 -5.6 320 10.0 9020 -8.9 6850 7.0

Aug 2700 -15.7 260 -5.1 9330 -4.0 6880 7.7

Sept 2760 -9.1 290 3.2 9250 -3.6 6610 9.4

Oct. 2760 -6.7 320 2.6 8750 -2.5 6740 3.4

Nov. 2760 -3.4 280 14.4 9050 -4.1 6530 4.3

Dec. 3010 -3.0 270 -10.9 9320 -4.0 7080 2.6

Total 33460 -5.7 3690 4.7 108950 -6.2 79890 5.4

Source: Summary Statistics on Port Traffic of Hong Kong，Marine Department, Hong Kong SAR

Fully cellular container ships numbered 94,440 and ranked first among all types, accounting for 44.1% of all vessel calls (2.0 percentage points lower than in 2006). Closely following was liners/cruise ships at 85,480, or 37.5% (7.9 percentage points higher than in 2006). There were 95,590 container ships making vessel calls, accounting for 41.9% of the total, 23,750 of which were ocean container ships and 71,840 of which were river container ships. These figures represented annual increases of 1.9% and 1.6%, respectively. Container vessels made up 41.9% of total vessel arrivals at 95,590, 23,750 of which were ocean container vessels (a 1.9% year-on-year increase) and 71,840 of which were river container ships (a 1.6% year-on-year).

82 Table 3-8 Vessel arrivals by ship type in 2007

Ocean Vessels River Vessels Total

Ship Type No. of No. of No. of Annual variation Percentage Annual variation Percentage Annual variation Percentage Vessel Vessel Vessel （%） Share（%） （%） Share（%） （%） Share（%） Arrivals Arrivals Arrivals

Car Carrier 20 -10.5 0 ∧ -- 0% 20 -10.0 0

Chemical Carrier/Tanker 450 +12.7 1.2 250 -11.6 0.1% 700 +2.6 0.3

Conventional Cargo 4660 -26.2 12.6 16000 -16.0 8.4% 20 670 -18.5 9.1 Vessel

Other Cargo Vessel 0 0 0 230 -5.7 0.1% 230 -5.7 0.1

Cruise/Ferry (1) 3560 +4.4 9.6 81910 +8.1 42.9% 85480 +7.9 37.5

Dry Bulk Carrier 1360 +0.4 3.7 1310 +8.0 0.7% 2670 +4.0 1.2

Fishing/Fish Processing 510 -11.8 1.4 ------Vessel Fully Cellular Container 23560 -2.1 63.4 70880 -1.9 37.1% 94440 -2.0 41.4 Vessel

Gas Carrier/Tanker 340 +2.4 0.9 30 -34.7 0% 370 -2.4 0.2

83 Gas Carrier/Tanker 150 +53.5 0.4 10220 -15.3 5.4% 10380 -14.7 4.6

OBO (Ore, Bulk, Oil) ∧ -84.2 0 10 -54.5 0% 10 -73.3 0 Carrier

Oil Tanker 1400 +0.2 3.8 1080 -10.9 0.6% 2480 -4.9 1.1

Other Fluid Carrier 0 0 0 10 -25.0 0% 10 -25.0 0

Pleasure Vessel 130 +15.5 0.3 ------

Roll On/Roll Off 440 -5.9 1.2 10 +50.0 0% 450 -5.5 0.2

Semi-container Vessel 190 +38.7 0.5 960 +36.7 0.5% 1150 +37.0 0.5

Tug 250 +34.6 0.7 7580 -13.9 4.0% 7830 -12.9 3.4

Others 120 +5.5 0.3 380 +66.5 0.2% 490 +46.6 0.2

Total 37150 -4.8 100.0 190860 -0.6 100.0% 228010 -1.3 100.0

Notes: (1) The figures have included the statistics for Tuen Mun Ferry Terminals which came into operation in November 2006. -- Not available.

Source: Port of Hong Kong Statistical Table: 2007, Marine Department, Hong Kong SAR

84 Table 3-9 Container vessel arrivals at Hong Kong in 2007

Ocean Vessels River Vessels

Semi-container Fully Cellular Container Semi-container Fully Cellular Total Total Total Vessel Vessel Vessel Container Vessel Year Annual Annual Annual Annual Annual Annual Annual variation variation variation No. No. No. variation No. variation No No. No. variation (%) variation (%) (%) (%) (%) (%) (%)

2000 490 -55.3 19450 5.4 19940 2.1 1090 33.1 16130 67.6 17220 -- 37160 --

2001 530 8.9 18900 -2.8 19430 -2.6 1430 30.8 21300 32.1 22730 32.0 42160 13.5

2002 550 3.6 19020 0.6 19570 0.7 1320 -7.4 36470 71.3 37790 66.3 57360 36.1

2003 270 -50.1 22340 17.4 22610 15.5 690 -48.0 55350 51.8 56040 48.3 78650 37.1

2004 210 -21.6 22660 1.5 22870 1.1 740 7.4 62920 13.7 63660 13.6 86530 10.0

2005 190 -10.3 23380 3.1 23570 3.1 850 14.7 66710 6.0 67560 6.1 91130 5.3

2006 140 -28.6 24070 3.0 24210 2.7 700 -17.2 72260 8.3 72960 8.0 97170 6.6

2007 190 38.7 23560 -2.1 23750 1.9 960 36.7 70880 -1.9 71840 1.5 95590 1.6

Source: Summary Statistics on Port Traffic of Hong Kong，Marine Department, Hong Kong SAR

85 Table 3-10 Container vessel arrivals at Hong Kong in 2007 by month

Ocean Vessels River Vessels

Fully Cellular Fully Cellular Semi-container Vessel Semi-container Vessel Year Container Vessel Container Vessel Annual Annual Annual Annual No. variation No. variation No. variation No. variation (%) (%) (%) (%)

Jan * -69.2 1980 -2.0 70 -1.4 5960 6.4

Feb 10 -50.0 1690 -6.4 60 -17.8 4530 -9.4

March 10 -28.6 2000 -6.0 80 20.6 6250 -4.4

April 20 54.5 1940 -8.1 70 2.9 6180 -2.2

May 20 38.5 2010 3.1 90 73.1 5950 -1.7

June 20 144.4 1980 2.5 80 100.0 6110 -4.3

July 20 -5.9 2010 1.2 90 79.6 5820 -6.5

Aug 20 63.6 1980 -7.9 90 68.5 6120 3.0

Sept 20 46.2 1990 -1.6 80 76.1 6100 -1.3

Oct. 20 36.4 1960 -2.3 80 57.7 5710 -0.3

Nov. 20 187.5 1950 0.6 80 44.8 6010 -1.4

Dec. 20 340.0 2070 2.5 80 11.9 6140 -0.9

Source: Summary Statistics on Port Traffic of Hong Kong, Marine Department, Hong Kong SAR

IV. Port Production

In 2007, throughput at the Port of Hong Kong maintained vigorous growth as gross cargo throughput reached 245.4 million tons, an increase of 3% year-on-year. Cargo throughput in the form of imports stood at 141.3 million tons, down 0.2% from 2006, and for exports at 104.1 million tons, up 7.7%. Table 4-1 Cargo throughput of Hong Kong Port (Thousands of Tonnes)

Cargo Throughput Year Import Export Total Annual variation (%)

86 1996 100 928 56 371 157 299 +0.9

1997 107 513 61 716 169 229 +7.6

1998 106 851 60 319 167 170 -1.2

1999 106 305 62 533 168 838 +1.0

2000 106 935 67 707 174 642 +3.4

2001 110 472 67 738 178 210 +2.0

2002 119 729 72 782 192 510 +8.0

2003 128 554 79 058 207 612 +7.8

2004 134 854 86 025 220 879 +6.4

2005 140 956 89 183 230 139 +4.2

2006 141 542 96 696 238 238 +3.5

2007 141 324 104 109 245 433 +3.0

Notes: - Not applicable

Source：Summary Statistics on Port Traffic of Hong Kong，Marine Department, Hong Kong SAR

Table 4-2 Cargo throughput of Hong Kong Port by month in 2007 (Thousands of Tonnes)

Arrivals Departures Total

Month Annual Annual Annual No. No. No. variation (%) variation (%) variation (%)

Jan 11492 -2.9 8419 10.9 19911 2.5

Feb 9405 -5.7 6492 13.8 15897 1.4

March 11523 -12.0 7617 -3.0 19140 -8.6

April 11565 -5.3 8690 6.3 20256 -0.7

May 13452 6.7 9045 -3.5 22497 2.4

June 12248 15.6 8819 33.2 21067 22.4

July 12427 -0.2 9313 2.7 21740 1.0

Aug 11199 -4.5 8582 0.6 19781 -2.4

87 Sept 11300 0.9 8845 0.7 20144 0.8

Oct. 11925 -2.5 8854 6.9 20779 1.3

Nov. 12030 3.5 9313 17.0 21343 9.0

Dec. 12758 6.3 10121 15.8 22879 10.3

Source：Summary Statistics on Port Traffic of Hong Kong，Marine Department, Hong Kong SAR

In terms of types of cargo, container throughput has generally controlled the highest percentage share at the Port of Hong Kong. The year of 2007 is no exception, as container throughput accounted for 77.4% of total cargo throughput, which rose 1.5 percentage points from 75.9% in 2006. In 2007, the Port handled a total container throughput of 2,400 TEUs with a total tonnage of 245.4 million tons, up by 1.9% from the year before. Outward container throughput was 104.1 million tons and inward container throughput was 141.3 million tons. By contrast, in 2006, container throughput reached 23.54 million TEUs and total tonnage reached 238.2 million tons, which includes inward and outward container throughputs of 96.7 million tons and 141.5 million tons, respectively.

88 Table 4-3 Container throughput of Port of Hong Kong (1,000 TEUs)

Kwai Tsing Container Terminal Mid-stream Operation and other Terminals Total Ocean Vessels River Vessels Total Ocean Vessels River Vessels Tota Year Annual Annual Annual Annual Annual Annual Annual No. variation No. variation No. variation No. variation No. variation No. variation No. variation (%) (%) (%) (%) (%) (%) (%)

1998 8869 -2.0 686 33.2 9555 -0.1 2641 -8.9 2386 24.1 5027 4.3 14582 1.4

1999 9511 7.2 784 14.3 10295 7.7 2838 7.5 3077 29.0 5916 17.7 16211 11.2

2000 10664 12.1 938 19.7 11603 12.7 3033 6.8 3462 12.5 6495 9.8 18098 11.6

2001 10154 -4.8 1131 20.6 11285 -2.7 3011 -0.7 3531 2.0 6541 0.7 17826 -1.5

2002 10584 4.2 1308 15.6 11892 5.4 3326 10.5 3926 11.2 7252 10.9 19144 7.4

2003 10625 0.4 1445 10.5 12070 1.5 3904 17.4 4475 14.0 8379 15.5 20449 6.8

2004 11271 6.1 2154 49.1 13425 11.2 4204 7.7 4355 -2.7 8559 2.1 21984 7.5

2005 12250 8.7 2034 -5.6 14284 6.4 3257 -22.5 5061 16.2 8318 -2.8 22602 2.8

2006 13685 11.7 2363 16.2 16048 12.4 2326 -28.6 5165 2.0 7491 -9.9 23539 4.1

2007 15083 10.2 2239 -5.3 17322 7.9 1830 -21.3 4846 -6.2 6677 -10.9 23998 2.0

Source：Summary Statistics on Port Traffic of Hong Kong, Marine Department, Hong Kong SAR

89 Table 4-4 Container throughput of imports of Port of Hong Kong (1,000 TEUs)

Kwai Tsing Container Terminal Mid-stream Operation and other Terminals Total

Ocean Vessels River Vessels Total Ocean Vessels River Vessels Total Year Annual Annual Annual Annual Annual Annual No. variation No. No. variation No. variation No. variation No. variation No. variation (%) (%) (%) (%) (%) (%)

1998 4253 -1.2 393 55.9 4646 2.0 1458 -7.9 1180 19.9 2638 2.7 7284 2.3

1999 4419 3.9 415 5.6 4834 4.1 1542 5.8 1650 39.8 3192 21.0 8027 10.2

2000 4982 12.7 524 26.4 5506 13.9 1700 10.2 1773 7.5 3473 8.8 8979 11.9

2001 4755 -4.6 621 18.4 5376 -2.4 1669 -1.8 1788 0.8 3457 -0.5 8833 -1.6

2002 4994 5.0 711 14.5 5706 6.1 1775 6.4 2011 12.5 3786 9.5 9492 7.5

2003 5075 1.6 834 17.3 5910 3.6 1988 11.9 2288 13.8 4276 12.9 10186 7.3

2004 5340 5.2 1214 45.5 6554 10.9 2267 14.1 2268 -0.9 4535 6.1 11089 8.9

2005 5966 11.7 1019 -16.1 6985 6.6 1968 -13.2 2646 16.6 4614 1.7 11599 4.6

2006 6726 12.7 1153 13.2 7879 12.8 1482 -24.7 2703 2.2 4185 -9.3 12064 4.0

2007 7269 8.1 1150 -0.3 8420 6.9 1243 -16.2 2378 -12.0 3621 -13.5 12041 -0.2

Source：Summary Statistics on Port Traffic of Hong Kong，Marine Department of Hong Kong, China

90 Table 4-5 Container throughputs of exports of Port of Hong Kong (1,000 TEUs)

Kwai Tsing Container Terminal Mid-stream Operation and other Terminals Total Ocean Vessels River Vessels Total Ocean Vessels River Vessels Total Year Annual Annual Annual Annual Annual Annual Annual No. variation No. variation No. variation No. variation No. variation No. variation No. variation (%) (%) (%) (%) (%) (%) (%)

1998 4616 -2.7 293 11.3 4909 -2.0 1183 -10.2 1206 28.6 2388 28.6 7297 0.5

1999 5092 10.3 369 26.0 5461 11.2 1296 9.6 1427 18.4 2723 14.0 8184 12.2

2000 5683 11.6 414 12.2 6096 11.6 1333 2.8 1689 18.4 3022 11.0 9118 11.4

2001 5399 -5.0 510 23.3 5909 -3.1 1341 0.6 1743 3.2 3084 2.1 8993 -1.4

2002 5589 3.5 597 17.0 6186 4.7 1551 15.6 1916 9.9 3466 12.4 9652 7.3

2003 5550 -0.7 610 2.3 6160 -0.4 1917 23.6 2186 14.1 4103 14.1 10263 6.3

2004 5931 6.9 940 54.0 6871 11.5 1936 1.0 2087 -4.5 4023 -4.5 10895 6.2

2005 6284 5.9 1015 7.9 7298 6.2 1288 -33.5 2416 15.8 3704 15.8 11002 1.0

2006 6959 10.8 1210 19.2 8169 11.9 843 -34.5 2462 1.9 3306 -10.8 11475 4.3

2007 7813 12.3 1089 -10.0 8902 9.0 588 -30.3 2468 0.2 3056 -7.6 11958 4.2

Source：Summary Statistics on Port Traffic of Hong Kong，Marine Department, Hong Kong SAR

91 The number of ocean containers far exceeded that of rivers in 2007. Ocean container throughput was 16,913,000 TEUs, controlling 70.5% of gross throughput at the Port of Hong Kong. Containers from river cargo ships took up 29.5% of the total and accounted for 7,085,000 TEUs, a decline of 5.9% from the same period in 2006.

Table 4-6 Source distribution of container throughputs of Port of Hong Kong (1,000 TEUs)

Ocean Vessels River Vessels

Year Annual variation Annual variation No. No. (%) (%)

1998 11510 -3.7 3072 26.0

1999 12350 7.3 3861 25.7

2000 13697 10.9 4401 14.0

2001 13165 -3.9 4662 5.9

2002 13910 5.7 5234 12.3

2003 14530 4.5 5919 13.1

2004 15475 6.5 6509 10.0

2005 15507 0.2 7095 9.0

2006 16011 3.3 7528 6.1

2007 16913 5.6 7085 -5.9

Source：Summary Statistics on Port Traffic of Hong Kong ，Marine Department, Hong Kong SAR

In 2007, break bulk cargo, unpacked liquid bulk cargo, and unpacked solid bulk cargo ranked second, third, and fourth in terms of container throughput, accounting for 8%，7.3%, and 7.2%，respectively, of gross cargo throughput at the Port of Hong Kong. Tonnage of break bulk cargo, unpacked liquid bulk cargo, and unpacked solid bulk cargo was 19.7 million tons, 18 million tons, and 17.75 million tons, respectively.

In 2006, the throughput of break bulk cargo, unpacked liquid bulk cargo, and unpacked solid bulk cargo was 21.11 million tons, 17.5 million tons, and 18.98 million tons and accounted for 8.9%, 7.3%, and 8%，respectively, of total throughput.

92 Table 4-7 Cargo handled by cargo type and mode of transport in 2007 (1,000 tonnes)

Marine River Waterborne

Cargo Unloaded Loaded Unloaded Loaded Unloaded Loaded Tpye Annual Annual Annual Annual Annual Annual No. No. No. No. No. No. variation (%) variation (%) variation (%) variation (%) variation (%) variation (%)

Break bulk 6502 -4.5 1416 -10.5 4090 -19.3 7668 0.3 10592 -10.8 9084 -1.5

Container 75495 4.3 64370 13.3 22719 -2.7 27451 -2.6 98214 2.6 91821 8.0

Unpacked 15840 0.6 745 115.3 860 32.5 516 -27.7 16700 1.9 1261 19.0 liquid bulk Unpacked 11599 -0.3 1382 55.3 4220 -28.4 561 5.6 15819 -9.8 1943 36.7 Solid Bulk

Total 109436 2.7 67913 13.9 31889 -8.8 36196 -2.4 141325 -0.2 104109 7.7

Source：Summary Statistics on Port Traffic of Hong Kong, Marine Department, Hong Kong SAR

93 In 2007, Hong Kong handled a total passenger throughput of 28.4 million persons, a year-on-year increase of 14.1%. International shipping lines handled 2.3 million persons while domestic shipping lines handled 26.1 million persons.

IV Port Safety and Security

Generally, the movement of dangerous goods through Hong Kong, China is controlled by statutory requirements. Under the Dangerous Goods (Shipping) Regulations (Cap. 295C), all ships are required to submit a dangerous goods manifest including a marine pollutant declaration to the Hong Kong Marine Department prior to their entering into the port. To ensure compliance, the Department carries out ship inspections to ensure that those cargoes that are classified as dangerous goods are packed, labeled, documented, and stowed in accordance with International Conventions, i.e. the International Maritime Dangerous Goods Code. For the year 2007, the Department received about 59,000 manifests and conducted dangerous goods inspections on 350 vessels.

In order to ensure the safety and security of ports, the Marine Department of Hong Kong carried out rigorous inspection and examination of vessel quality at its port. In 2007, the Marine Department had a total of 1,012 registered vessels and 52 cargo vessels inspected and checked for quality and 704 cargo vessels and 952 passenger vessels for their hulls, plants, and equipment. In 2007, Hong Kong, China signed a total of 20 house certificates for bulk poisonous liquid materials and 193 statements for transporting dangerous goods. Coupled with 37 workshops and seminars on port security, these efforts aimed to support and ensure the safety and security of operations and production at the Port of Hong Kong.

The major laws and regulations on port security in Hong Kong, China are the Merchant Shipping (Security of Ships and port Facilities) Ordinance (Cap. 582) and the Merchant Shipping (Security of Ships and port Facilities) Rules (Cap. 582A). By enacting these pieces of legislations, a full range of measures from the International Ship and Port Facility Security (ISPS) Code have been adopted. Details of the laws can be found on the Marine Department‟s website.

The Marine Department has been appointed as the Designated Authority to fulfill the obligations under the ISPS Code for ensuring the security of the Port of Hong Kong, China. The Port Area Security Advisory Committee, chaired by the Deputy Director of Marine and composed of representatives from the port and shipping communities, along with other relevant government agencies, has been established. The committee is, in essence, a consultative body that provides advice to the Designated Authority on all matters relating to the implementation of the ISPS Code in Hong Kong, China.

A Port Facility Security Working Group, comprised of the Hong Kong Police, Customs and Excise Department, and Immigration Department and chaired by the Marine Department has also been established. The working group is the executive arm of the Designated Authority to fulfill its obligations under the ISPS Code in relation to port security.

94

Hong Kong, China maintains measures relevant to port safety and security in line with the standards adopted by the International Maritime Organization.

V. Pilotage at Port of Hong Kong

Pilotage in Hong Kong, China is regulated by statutory provisions. The major laws in Hong Kong, China on port pilotage are the Pilotage Rules and Regulations and its amendments, which were initially formulated in December 1971. In Hong Kong, China, piloting is compulsory in that any ship with a gross weight of 3,000 tons or more or any ship loaded with dangerous cargo with a gross weight of 1,000 tons or more calling at the Port must be piloted. Piloting services are available 24 hours a day. The pilotage dues for Hong Kong, China are payable to the Pilots Association that provides the pilotage service. The dues are stipulated in the Pilotage (Dues) Order (Cap. 84D) of the Pilotage Ordinance in values of Hong Kong dollars in accordance with the net register tonnage of the ship. Details are as follows:

As of 2007, Hong Kong, China had a total of 102 pilots, including 76 senior pilots. The Port piloted 61,000 ships, including 24,000 ships with lengths of over 200 meters each and 15,000 ships with lengths of over 250 meters each. In 2006, the Port piloted 59,000 ships, including 21,500 ships with lengths of over 200 meters each and 13,500 ships with lengths of over 250 meters each. This reflects an 11.1% year-on-year increase in 2007.

All the statistics in this report are provided by the Marine Department of Hong Kong, China, unless stated otherwise.

95 Report on Canadian Port Development, 2007

I. The Canadian Economy and Export and Import Trade The Canadian economy has maintained healthy economic growth with a total GDP of 1,219,327 million Canadian dollars, a year-on-year increase of 2.5%, which is 0.4 percentage points lower than in 2006.

Table 1-1 Gross domestic product at basic prices, overview-Annual (Million Canadian Dollars)

2002 2003 2004 2005 2006 2007

All industries 1 068 765 1 091 378 1 1249 98 1 155 681 1 189 661 1 219 327

Goods-producing 346175 350817 360281 368147 372320 374126 Industries Agriculture, forestry, fishing 23293 25478 27669 28214 27648 26478 and hunting Mining and oil and 53488 54979 55672 55796 56699 57288 gas extraction

Utilities 28883 29057 28993 30613 30181 31344

Constructing 57775 59871 63453 66611 70805 72890

Manufacturing 182736 181349 184814 187806 187041 185311

Serve-producing 722590 740591 764791 787730 818097 846591 industries

Wholesale trade 55226 57767 59990 63159 66622 70256

Retail trade 58483 60515 62666 64535 68420 72391

Transportation and 50066 50270 52169 54148 55690 56624 warehousing Information and 38229 38631 40813 41888 43227 44349 cultural industries Finance, insurance, real estate, renal and leasing and 202959 207544 215074 222475 231381 240536 management of companies and enterprises Professional, scientific and 48481 50797 52099 53618 55963 57874 technical services

96 Administrative and support, waste management and 24853 25722 27363 28500 29989 30948 remediation services Educational 51593 52566 53764 55561 57108 58863 Services Health care and 68142 70324 71589 72826 74940 77035 social assistance Arts and entertainment and 10398 10365 10791 10873 11454 11716 recreation Accommodation 25408 24881 25656 25998 26680 27146 and food services Other services (except public 27230 27894 28729 29632 30565 31542 administration) Public 61523 63314 64085 64548 66134 67463 administration

Other aggregations

Industrial 265106 265589 269590 273833 274307 274908 prodiction Business sector 896596 913871 944295 971685 1000642 1025436 industries Non-business 172169 177511 180683 183949 188967 193838 sector industries Information and communication 44949 47400 50508 52493 54999 57199 technology sector

Energy sector 81878 82982 83141 84211 84986 85827

Source：Gross Domestic Product by Industry, Statistics Canada

Table 1-2 Annual growth rates of Canada’s GDP (Percentage)

2002 2003 2004 2005 2006 2007

All industries 2.7 2.1 3.1 2.7 2.9 2.5

Goods-producing 1.9 1.3 2.7 2.2 1.1 0.5 Industries

97 Agriculture, forestry, fishing -5.6 9.4 8.6 2.0 -2.0 -4.2 and hunting Mining and oil and 4.4 2.8 1.3 0.2 1.6 1.0 gas extraction

Utilities 5.5 0.6 -0.2 5.6 -1.4 3.9

Constructing 4.0 3.6 6.0 5.0 6.3 2.9

Manufacturing 0.9 -0.8 1.9 1.6 -0.4 -0.9

Serve-producing 3.1 2.5 3.3 3.0 3.9 3.5 industries

Wholesale trade 3.3 4.6 3.8 5.3 5.5 5.5

Retail trade 5.9 3.5 3.6 3.0 6.0 5.8

Transportation and -0.2 0.4 3.8 3.8 2.8 1.7 warehousing Information and 4.7 1.1 5.6 2.6 3.2 2.6 cultural industries Finance, insurance, real estate, renal and leasing and 3.1 2.3 3.6 3.4 4.0 4.0 management of companies and enterprises Professional, scientific and 2.2 4.8 2.6 2.9 4.4 3.4 technical services Administrative and support, waste management and 8.9 3.5 6.4 4.2 5.2 3.2 remediation services Educational 1.8 1.9 2.3 3.3 2.8 3.1 Services Health care and 1.4 3.2 1.8 1.7 2.9 2.8 social assistance Arts and entertainment and 2.5 -0.3 4.1 0.8 5.3 2.3 recreation Accommodation 1.8 -2.1 3.1 1.3 2.6 1.7 and food services Other services 4.3 2.4 3.0 3.1 3.1 3.2 (except public

98 administration)

Public 3.0 2.9 1.2 0.7 2.5 2.0 administration

Other aggregations

Industrial 2.1 0.2 1.5 1.6 0.2 0.2 prodiction Business sector 2.8 1.9 3.3 2.9 3.0 2.5 industries Non-business 2.1 3.1 1.8 1.8 2.7 2.6 sector industries Information and communication 0.8 5.5 6.6 3.9 4.8 4.0 technology sector

Energy sector 5.5 1.3 0.2 1.3 0.9 1.0

Source：Gross Domestic Product by Industry, Statistics Canada

Canada‟s total volume of foreign trade was 833 billion Canadian dollars in 2006, 2.3% higher than in 2005. Its total value of imports was 393 billion Canadian dollars and its gross value of exports was 440 billion Canadian dollars. Its major trading partners were the US, China, Japan, the UK, and Mexico. In 2007, there was a continued increase Canada‟s gross volume of foreign trade, reaching 857 billion Canadian dollars, 2.9% higher than the previous year. Its total value of imports was 407 billion Canadian dollars and its gross value of exports was 450 Canadian dollars. For 2007, its major trading partners included the US, China, Japan, the UK, Mexico and Germany.

Table 1-3 Imports and exports in Canada over years

2000 2003 2004 2005 2006 2007

Exports (f.o.b.) -Exportations 276635 272819 304528 359431 389531 416464 (f.a.b.)(Millions of dollars)

Exports (f.o.b)- Exportations (f.a.b.) 3.668 3.716 4.285 3.892 3.615 3.316 (%)

Imports (f.o.b.) -

Importations (f.a.b.) 244786 245028 279931 331553 357651 386929

(Millions of dollars)

99 Imports (f.o.b) - Importations (f.a.b.) 3.433 3.212 3.679 3.414 3.153 2.958 (%)

Source: UNCTAD HANDBOOK OF STATISTICS 2008，UNCTAD secretariat

Table 1-4 Growth Rates of Imports and Exports of Canada (Percentage)

80-05 90-00 90-05 95-05 00-05 2004 2005 2006 2007

Annual average growth 6.8 8.3 6.9 5.5 5.5 11.6 18.0 8.4 6.9 rates of exports

Annual average growth 6.8 7.5 6.4 5.7 6.5 14.2 18.4 7.9 8.2 rates of imports

Source: UNCTAD HANDBOOK OF STATISTICS 2008，UNCTAD secretariat

In 2007, the US was the recipient of 80.7% of Canada‟s total exports and remained the largest Canadian export partner, followed closely by Western Europe, Asia, Latin America, and the Middle East. As the United States borders Canada, road, not waterway, is the dominant mode of exportation. However, Canadian trade with other countries was largely accomplished via water, as 64% of total exports used marine transport to countries other than the US. Additionally, marine transport accounted for 83% of total trade with Asia.

Table 1-5 Canada’s exports by origin, destination and mode of transport, 2007 (Million dollars)

Origin

Country of Eastern Western Total Main modes used(per cent of total value） Destination provinces provinces 20073 United 244748 109461 354210 Road (49), Rail (20) States

100 Other 56521 37834 94355 Marine (64),Air (27) Countries

West Europe 30536 8514 39050 Marine (58), Air (38)

Asia 10569 20676 31245 Marine (83), Air (15)

Latin 7466 4121 11587 Marine (44), Road (23) America

Middle East 3023 1778 4800 Marine (63), Air (27)

East Europe 2004 847 2851 Marine (51), Air (34)

Oceania 1437 771 2208 Marine (50), Air (36)

Africa 1457 1120 2578 Marine (59), Air (23)

other 30 6 36 Marine (66), Air (32)

Total 293263 145667 438931

Notes: 1 Total exports including domestic exports and re-exports, mode of transport information represents the mode of transport by which the international boundary is crossed. This may by different from the mode of transport within Canada. 2 Province of origin: Eastern provinces include Atlantic provinces, Quebec and Ontario. 3 Preliminary data for 2007.

Source: Transport Canada, adapted from Statistics Canada, International Trade database

As for Canadian imports, the United States was Canada‟s largest partner as the source of 54% of gross imports, followed by Asia, Western Europe, Latin America, and Africa, in that order. In 2007, Canada‟s trade with countries other than the United States totaled 278 billion US dollars. Imports were more significant than exports and marine and air transportation were the two dominant modes in terms of both value and volume, accounting for 41% and 31%, respectively. Marine transport controlled 74% of imports from the Middle East and 71% of imports from Africa.

Table 1-6 Canada’s imports by origin, destination and mode of transport, 2007 (Million dollars)

Destination2 Country of Main modes used(per cent Total 20073 Destination Eastern Western of total value） provinces provinces

United States 170899 44712 215611 Road(75) Rail (12)

Other Countries 151667 32057 183724 Marine (41) Road (31)

101 West Europe 55067 20952 76019 Marine (40) Road (39)

Asia 48495 5567 54062 Marine (43) Air (29)

Latin America 26190 3549 29739 Road (51) Marine (19)

Middle East 8698 116 8814 Marine (71) other (17)

East Europe 5233 208 5441 Marine (74) Air (15)

Oceania 3667 313 3980 Marine (54) Air (19)

Africa 1498 806 2304 Marine (41) Road (29)

other 2819 547 3366 Road (58) Air (36)

Total 322566 76770 399336

Notes: 1 For imports, the mode of transport represents the last mode of transport by which the cargo was transported to the port of clearance in Canada and is derived from the cargo control documents of customs. This may not be the mode of transport by which the cargo arrived at the Canadian port of entry in the case of inland clearance. This may, therefore, lead to some underestimation of Canadian imports by the marine and air transport mode. 2 Province of clearance for imports as final destination is unknown. 3 Preliminary data for 2007.

Source: Transport Canada, adapted from Statistics Canada, International Trade database

Of Canada‟s top 20 trading partners from 1997 to 2007, China and India both provided double-digit average annual growth rates in trade. Six other countries had similar double-digit average growth rates in either exports or imports with Canada over the same period. In 2007, China ranked second ($38.3 billion) and third ($9.3 billion), respectively, in terms of total imports and exports. As its neighboring nation and the word‟s largest economy, the United States ranked first in terms of both imports and exports with Canada. In 2007, the value of foreign trade between Canada and the Untied States was approximately 570 billion dollars, including imports totaling over 354 billion dollars and exports of over 215 billion dollars, up from the year before by 1.3% and 0.4%, respectively. As for Canadian exports to other countries, the UK, China, Japan, and Mexico ranked 2nd, 3rd, 4th and 5th,, respectively. Exports to the UK amounted to 12.98 billion dollars, increasing 28.5% year-on-year. Exports to China and Mexico were 9.28 billion and 4.89 billion dollars with growth rates of 21.3% and 11.8%, respectively. The largest partners in terms of imports were China, Mexico, Japan, and Germany, in that order. The figure for imports from China was 38.26 billion dollars, a year-on-year increase of 11.6%. Table 1-7 Canadian exports by region (Million dollars)

Destination 2006 2007 1 Annual Growth Rate

102 (%)

United States 358 937 354 210 1.3

Others 80 649 94 355 17.0

U.K 10 103 12 983 28.5

China 7 654 9 284 21.3

Japan 9 410 9 155 2.7

Mexico 4 375 4 890 11.8

Netherland 3 071 4 042 31.6

Germany 3 863 3 881 0.5

Norway 1 887 3 684 95.3

France 2 875 3 125 8.7

South Korea 3 258 3 004 7.8

Belgium 2 387 2 841 19.0

Italy 1 880 2 564 36.4

Other Countries 29 887 34 901 16.8

Total 439 586 448 565 2.0

Notes： Total exports including domestic exports and re-exports. Preliminary Data for 2007

Source: Transport Canada, adapted from Statistics Canada, International Trade database, February 2008

Table 1-8 Shares of each mode of transport in the total trade volume of Canada

Total trade volume of foreign trade Shares（%） （Millions of dollars） All Road Rail Marine Air Other Road Rail Marine Air Other modes 428 291 71 1997 9 504 29 059 26 567 68.1 16.7 2.2 6.8 6.2 302 618 553 473 331 73 1998 9 392 32 636 25 855 70.1 15.6 2.0 6.9 5.5 487 902 702 523 360 86 1999 9 762 37 703 29 093 68.8 16.6 1.9 7.2 5.6 649 145 947 2000 588 383 94 12 711 47 488 51 404 65.0 16.0 2.2 8.1 8.7

103 947 096 248 570 362 94 2001 13 123 42 989 56 123 63.7 16.6 2.3 7.5 9.8 040 929 876 563 371 97 2002 14 684 36 319 44 002 65.9 17.2 2.6 6.4 7.8 861 668 187 530 335 91 2003 15 216 32 719 55 496 63.2 17.3 2.9 6.2 10.5 457 396 630 556 346 98 2004 16 253 31 942 63 916 62.2 17.7 2.9 5.7 11.5 545 028 406 580 349 97 2005 19 687 32 316 81 153 60.2 16.8 3.4 5.6 14.0 041 178 707 575 347 98 2006 20 917 30 301 78 248 60.5 17.0 3.6 5.3 13.6 352 871 015 569 335 98 20071 24 749 33 163 78 563 58.8 17.2 4.3 5.8 13.8 821 228 117 Notes: 1 Preliminary statistics for 2007.

Source: Transportation in Canada 2007-- An Overview, Transport Canada

Table 1-9 Shares of each mode of transport in the total exports of Canada

Total Exports1 (Millions of dollars) Shares（%）

All Road Rail Marine Air Other Road Rail Marine Air Other modes 243 145 53 12 25 1997 6 725 59.7 22.1 2.8 5.0 10.5 888 544 879 195 544 269 169 56 13 24 1998 6 233 62.7 20.8 2.3 5.2 9.0 909 135 212 980 348 308 185 70 17 28 1999 6 927 60.2 22.8 2.2 5.7 9.1 076 386 147 521 095 359 200 75 23 50 2000 9 440 55.8 21.0 2.6 6.6 13.9 289 311 593 845 100 351 192 75 21 52 2001 9 592 54.7 21.4 2.7 6.2 14.9 751 449 268 875 567 345 196 75 18 42 2002 11 346 57.0 21.9 3.3 5.5 12.3 366 869 632 905 614 326 173 71 17 52 2003 12 061 53.1 21.9 3.7 5.3 16.0 700 465 671 290 212 347 183 77 15 57 2004 13 566 52.7 22.2 3.9 4.5 16.6 889 445 303 688 888

104 365 184 75 16 72 2005 17 255 50.5 20.5 4.7 4.5 19.7 436 479 088 556 059 358 181 73 14 70 2006 18 810 50.6 20.5 5.2 4.1 19.6 937 716 629 597 185 354 174 72 15 71 20072 20 773 49.2 20.4 5.9 4.4 20.1 210 316 213 637 271 Notes: 1. Total exports including domestic exports and re-exports, mode of transport information represents the mode of transport by which the international boundary is crossed. This may by different from the mode of transport within Canada. 2 Preliminary data for 2007.

Source: Transportation in Canada 2007-- An Overview, Transport Canada

Table 1-10 Shares of each mode of transport in the total imports of Canada (Percentage)

Total Imports1（Millions of dollars） Shares（%）

All Road Rail Marine Air Other Road Rail Marine Air Other modes 184 146 17 16 1997 2 779 1 023 79.2 9.6 1.5 9.1 0.6 414 074 674 864 203 162 17 18 1998 3 158 1 507 80.0 8.6 1.6 9.2 0.7 578 767 490 656 215 174 16 20 1999 2 835 998 81.1 7.8 1.3 9.4 0.5 573 758 800 182 229 182 18 23 2000 3 271 1 304 79.6 8.1 1.4 10.3 0.6 658 785 655 643 218 170 19 21 2001 3 531 3 556 78.1 9.0 1.6 9.7 1.6 288 479 608 114 218 174 21 17 2002 3 338 1 388 80.0 9.9 1.5 8.0 0.6 495 800 555 414 203 161 19 15 2003 3 155 3 284 79.5 9.8 1.5 7.6 1.6 758 932 959 428 208 162 21 16 2004 2 688 6 028 77.9 10.1 1.3 7.8 2.9 656 583 103 254 214 164 22 15 2005 2 431 9 094 76.7 10.5 1.1 7.3 4.2 605 699 620 760 216 166 24 15 2006 2 108 8 062 76.8 11.3 1.0 7.3 3.7 416 155 387 704 20072 215 160 25 3 976 17 7 292 74.6 12.0 1.8 8.1 3.4

105 611 912 905 526 Notes: 1 For imports, the mode of transport represents the last mode of transport by which the cargo was transported to the port of clearance in Canada and is derived from the cargo control documents of customs. This may not be the mode of transport by which the cargo arrived at the Canadian port of entry in the case of inland clearance. This may, therefore, lead to some underestimation of Canadian imports by the marine and air transport mode. 2 Province of clearance for imports as final destination is unknown. 3 Preliminary data for 2007.

Source: Transportation in Canada 2007-- An Overview, Transport Canada

Table 1-11 Canada/other countries trade by mode and sector

（ ） Value(Millions Share in percent %

of dollars) Road Rail Marine Air Other

Exports1

1997 54 184 9.1 1.7 72.8 16.4 0.0

1998 48 535 7.8 1.3 71.3 19.5 0.0

1999 47 344 6.5 1.7 71.2 20.6 0.0

2000 53 926 6.3 1.3 69.8 22.6 0.0

2001 52 334 6.4 1.7 67.9 24.0 0.0

2002 51 015 5.5 1.9 68.1 24.5 0.0

2003 54 372 5.5 1.7 65.8 27.1 0.0

2004 64 140 5.1 1.7 63.8 29.3 0.0

2005 70 221 5.6 2.1 61.6 30.7 0.0

2006 80 649 5.0 2.2 61.8 31.0 0.0

20074 94 355 6.4 2.2 64.4 26.6 0.5

Imports2

1997 88 533 31.3 4.5 40.0 22.0 2.1

1998 94 808 36.1 3.6 37.5 21.7 1.1

1999 104 834 34.8 3.2 38.2 23.3 0.5

2000 127 332 30.9 3.5 41.3 23.7 0.6

2001 124 820 32.2 3.9 40.4 21.9 1.6

106 2002 130 458 32.3 3.5 41.2 20.2 2.7

2003 132 254 31.7 3.4 42.8 18.8 3.4

2004 145 803 32.3 3.0 41.5 19.6 3.5

2005 164 297 31.4 3.0 40.8 19.3 5.6

2006 176 942 31.2 2.5 41.2 19.7 5.4

20073 183 724 32.0 2.9 39.5 20.5 5.2

Notes： 1 Total exports including domestic exports and re-exports, mode of transport information represents the mode of transport by which the international boundary is crossed. This may by different from the mode of transport within Canada. 2 For imports, the mode of transport represents the last mode of transport by which the cargo was transported to the port of clearance in Canada and is derived from the cargo control documents of customs. This may not be the mode of transport by which the cargo arrived at the Canadian port of entry in the case of inland clearance. This may, therefore, lead to some underestimation of Canadian imports by the marine and air transport mode. 3 Preliminary data for 2007.

Source：Transport Canada, adapted from Statistics Canada, International Trade database

II Production environment

In 2006, the volume of waterway transportation reached 40,840,000 tons and turnover was recorded at 2.194 trillion ton-kilometers，accounting for 30.7% and 78.5%, respectively, of the comprehensive transportation system. The year 2006 placed the total value of foreign trade at 832.94 billion Canadian dollars, with waterway transport contributing 17.3% for a total of 143.72 billion Canadian dollars (1.3% higher than in 2005). In 2007, waterway transport was responsible for 159.60 billion Canadian dollars, making up 18.6% of the Canadian foreign trade volume, up 1.3% over 2006.

Table 2-1 Statistics of Canadian foreign trade volume (Billion Canadian Dollars)

Year Mode Export Import Total % Trade

2,005 Air 38.08 47.52 85.59 10.5%

Other (include Pipeline) 72.06 18.25 90.31 11.1%

Rail 76.54 27.49 104.03 12.8%

Road 188.44 216.21 404.66 49.7%

Water 60.53 69.44 129.98 16.0%

107 2005 Total All Modes 435.66 378.90 814.56 100.0%

2,006 Air 39.58 50.54 90.12 10.8%

Other (include Pipeline) 70.19 17.55 87.74 10.5%

Rail 75.40 28.87 104.27 12.5%

Road 185.73 221.37 407.10 48.9%

Water 68.69 75.03 143.72 17.3%

2006 Total All Modes 439.59 393.36 832.94 100.0%

2,007 Air 40.76 55.60 96.36 11.2%

Other (include Pipeline) 73.43 16.98 90.41 10.5%

Rail 74.34 31.28 105.61 12.3%

Road 180.44 224.68 405.13 47.3%

Water 81.40 78.19 159.60 18.6%

2007 Total All Modes 450.37 406.74 857.11 100.0%

Source ：Transportation in Canada 2007-- An Overview, Transport Canada

As for Canadian waterway transport, 2006 witnessed slow growth in both domestic freight volume and cross-border freight volume. The former was 70.0 million tons, up by 0.57%, while the latter was 129.5 million tons, up by 0.62%. By contrast, the overseas freight volume grew at a faster rate, reaching 208.9 million tons, an annual increase of 3.3%.

Table 2-2 Canada’s marine traffic statistics by sector (Millions of tonnes)

Year Flows Total Total Flows Domestic Transborder Overseas Handled

1986 60.5 68.2 138.4 267.1 327.6

1987 67.6 73.2 153.8 294.6 362.2

1988 70.0 83.8 166.2 320.0 390.0

1989 62.0 82.7 156.7 301.4 363.4

1990 60.4 76.2 156.1 292.7 353.1

1991 57.9 67.0 167.2 292.1 350.0

108 1992 52.3 67.9 155.3 275.5 327.8

1993 50.4 69.9 154.2 274.5 324.9

1994 52.2 78.8 168.1 299.1 351.3

1995 50.4 85.2 174.5 310.1 360.5

1996 48.8 88.5 171.4 308.7 357.5

1997 46.7 94.3 188.4 329.4 376.1

1998 48.3 100.1 179.4 327.8 376.1

1999 52.2 102.0 179.2 333.4 385.6

2000 54.5 108.8 185.0 348.3 402.8

2001 53.9 108.0 178.9 340.8 394.7

2002 62.6 114.3 168.4 345.4 408.1

2003 68.6 123.4 183.3 375.3 443.8

2004 69.1 123.3 191.7 384.1 453.3

2005 69.6 128.7 202.3 400.6 470.1

20061 70.0 129.5 208.9 408.4 478.4

Notes: 1 Data estimated for 2006.

Source: Statistics Canada, Shipping in Canada, Cat. 54-205

As of late 2007, Canada boasted a total of 24 leading container transport companies and 55 container transport agents. By the end of the year, Canada had 182 registered ships and a total DWT of 2,210,000 tons.

Table 2-3 Major shipping companies of container transport in Canada

Carriers Agents

Canada Maritime Agencies Ltd Canada Maritime Agencies Ltd

Hapag Lloyd (canada Inc) Cast North America Inc

OOCL Canada Inc Hapag Lloyd (canada Inc)

Cast North America Inc OOCL Canada Inc

109 Mediterranean Shipping Co Maersk Canada

Zim Isreal Navigation Zim Isreal Navigation

Maersk Canada Atlantic Container Line

Atlantic Container Line Mediterranean Shipping Co

DSR Senator Lines (America) Inc DSR Senator Lines (America) Inc

N Y K Lines(Canada) Inc Mclean Kennedy Inc

Mclean Kennedy Inc P and O Nedlloyd Ltd

P and O Nedlloyd Ltd N Y K Lines(Canada) Inc

Westward Shipping Ltd Costa Armatori Spa

Kent Line Ltd Kent Line Ltd

Costa Armatori Spa Westward Shipping Ltd

Columbus Line Ltd Greer Shipping Ltd

CMA-CGM The French Line CMA-CGM The French Line

Evergreen American Corp Protos Shipping Ltd

Nortec Marine Agencies Tropical Shipping of Canada

Tropical Shipping of Canada Evergreen American Corp

Protos Shipping Ltd Nortec Marine Agencies

American Presid Line Can Ltd Eimskip Newfoundland

China Shipping(Canada) Agency SPM Marine International

Eimskip Newfoundland Inchcape Shipping Service

Columbus Line Ltd

China Shipping(Canada) Agency

Safmarine Shipping Corpor

Lykes Lines Limited Llc

Seatransit Direct Ltd

Montship

Kerr Norton Marine

Smi Marine Ltd.

Robert Reford Inc

Mathers And Son I H

110 American Presid Line Can Ltd

Lower St Lawrence Ocean

Saudi Arabia Line

Unknown Halifax

China Ocean Shipping Canada

Gearbulk Shipping Canada

Fesco Agencies N A Inc

Alliance SA

Courtney Agencies Ltd

Furncan Marine Ltd

Gresco Ltee

Holmes Maritime Inc

P And O Line

Island Shipping Ltd (ISL Customs Brokers)

Compass Marine Service

Trans Atlantic Agencies

Empire Shipping Agency Ltd

Supership

Star Shipping Ltd

Transport Marine Services

Westwood Shipping Agency Ltd

Source：Statistics Canada, Shipping in Canada, Cat. 54-205

Table 2-4 Canadian-registered fleet by type

Type of Gross tons(thousand of tons) Number of vessels Carriers

1987 1997 2007 1987 1997 2007

Dry bulk 1 685 1 289 1 096 101 72 62

111 Tankers 253 221 515 33 20 23

General 89 131 132 20 16 19 Cargo

Ferries 259 345 428 52 60 72

Other 56 33 38 12 6 6

Total 2 342 2 019 2 210 218 174 182

Notes: Self-propelled vessels of 1,000 gross tons and over, including government owned ferries; excluding tugs used in offshore supply.

Source：Canadian Transportation Agency and Transport Canada

III Port Production

In 2005, Canadian ports were actively engaged in production with a total of 104,190 ships arriving at and departing from ports, a year-on-year increase of 3.8%. 61,431 domestic ships and 2,759 international ships arrived at and departed from Canadian ports, increasing 2.7% and 5.3% year-on-year, respectively. Among all domestic ships, the number of arrivals was 30,705 while that of departures was 30,726, increasing 2.9% and 2.5%, respectively, year-on-year. Of international ships, the number carrying imports was 21,324 and that of exports was 21,435. The Fraser River Port and the Port of Vancouver were the busiest ports in Canada in 2005, the former boasting 14,669 ships and the latter claiming 11,959 ships either arriving at or departing from its facilities.

112 Table 3-1 Canada's marine international vessel movements at major ports

YEAR: 2004 YEAR: 2005

HANDLING PORT DOMESTIC SECTOR EXPORT IMPORT TOTAL DOMESTIC SECTOR EXPORT IMPORT TOTAL Departure Arrival Departure Arrival Arrivals Departures Total Arrivals Departures Total (international) (international) (international) (international)

Fraser River 4,313 8,069 12,382 1,375 1,453 15,210 4,058 7,607 11,665 1,453 1,551 14,669

Vancouver 1,018 3,162 4,180 3,679 3,593 11,452 1,069 3,013 4,082 3,959 3,918 11,959

Howe Sound 4,632 440 5,072 70 71 5,213 4,575 529 5,104 174 174 5,452

East Coast Vancouver Island 3,695 1,038 4,733 40 40 4,813 3,586 1,036 4,622 50 48 4,720

Victoria 118 93 211 2,134 2,165 4,510 136 52 188 2,342 2,356 4,886

Crofton 2,200 1,327 3,527 79 227 3,833 2,026 1,262 3,288 91 252 3,631

Montréal/Contrecoeur 770 849 1,619 923 1,013 3,555 828 837 1,665 943 983 3,591

North Arm Fraser River 1,128 2,207 3,335 3,335 1,285 2,441 3,726 3,726

Halifax 354 297 651 1,143 1,091 2,885 363 314 677 1,088 1,044 2,809

Nanaimo 1,068 698 1,766 339 341 2,446 1,143 766 1,909 375 347 2,631

Sarnia 397 368 765 763 706 2,234 400 371 771 706 629 2,106

Windsor Ontario 241 193 434 775 750 1,959 235 206 441 721 697 1,859

113 Québec/Lévis 582 540 1,122 349 294 1,765 562 590 1,152 334 326 1,812

Kingston 3 6 9 586 589 1,184 2 2 1,078 1,076 2,156

Saint John 110 138 248 690 711 1,649 119 163 282 656 690 1,628

Hamilton 392 347 739 276 289 1,304 429 374 803 291 305 1,399

Prince Rupert 32 34 66 586 589 1,241 24 39 63 531 548 1,142

Campbell River 235 668 903 109 115 1,127 349 587 936 177 125 1,238

Beale Cove 4 428 432 395 350 1,177 2 436 438 363 366 1,167

St. John's 530 530 1,060 43 47 1,150 526 518 1,044 26 25 1,095

Come-By-Chance 214 212 426 340 332 1,098 230 209 439 300 285 1,024

Matane 518 512 1,030 19 13 1,062 512 508 1,020 15 10 1,045

Nanticoke 123 191 314 302 368 984 130 190 320 318 378 1,016

Sept-Îles/Pointe-Noire 293 231 524 203 141 868 375 303 678 276 160 1,114

West Coast Vancouver Island North 503 505 1,008 1,008 396 396 792 792

Other Ports 6,366 6,909 13,275 5,089 4,998 23,362 7,345 7,979 15,324 5,057 5,142 25,523

ALL PORTS 29,839 29,992 59,831 20,307 20,286 100,424 30,705 30,726 61,431 21,324 21,435 104,190

Source: Statistics Canada, Shipping in Canada, Cat. 54-205

114 In 2006, Canada achieved a gross cargo throughput of 478.4 million tons and a total cargo turnover of 2.1936 trillion ton-kilometers, up 1.8% and 1.9%, respectively, over the previous year. The volume of freight traffic was recorded at 408.4 million tons, including a national handling capacity of 70 million tons and a carrying capacity of 206 million tons for exports and of 132.8 million tons for imports.

Table 3-2 Canada’s marine traffic by sector (Millions of dollars)

Total Total Cargo Total Cargo Domestic Domestic Export Import Cargo Year Volume Turnover（Billions Unloaded Loaded Loaded Unloaded Troughput （Millions of ton-km） （Millions）

1996 48.8 48.8 174.3 85.6 308.7 357.5 1,781.1

1997 46.7 46.7 187.9 94.7 329.4 376.1 1,967.1

1998 48.3 48.3 179.0 100.4 327.7 376.0 1,876.3

1999 52.2 52.2 179.6 101.6 333.4 385.6 1,881.1

2000 54.5 54.5 187.8 105.9 348.3 402.8 1,969.1

2001 53.9 53.9 174.7 112.1 340.8 394.7 1,872.9

2002 62.6 62.8 174.3 108.5 345.4 408.1 1,765.8

2003 68.6 68.5 191.4 115.3 375.3 443.8 1,967.9

2004 69.1 69.1 196.0 119.0 384.2 453.3 2,047.7

2005 69.6 69.5 201.8 129.2 400.6 470.1 2,151.8

2006 1 70.0 70.0 206.0 132.8 408.4 478.4 2,193.6

Notes: 1 Data estimated for 2006.

Source: Statistics Canada, Shipping in Canada, Cat. 54-205

In 2006, those ports under the leadership of 19 Canadian port authorities were responsible for 53% of gross national throughput, which reached 253.7 million tons for a year-on-year increase of 2.0%. Other ports achieved a combined cargo throughput of 224.7 million tons, increasing by 1.8% year-on-year.

115 Table 3-3 Canada’s marine domestic and international traffic handled at Canada Port Authorities (CPA’s) and other ports

2005 2006 Difference per Port Port Port (Millions of (Millions of cent Per cent（%） Per cent（%） tonnes） tonnes) (2005 vs.2006)

Vancouver 76.5 16.3 79.4 16.6 3.9

Saint John 27.5 5.9 24.9 5.2 (9.7)

Sept-Îles/Pointe-Noire 22.4 4.8 23.5 4.9 4.6

Montréal/Contrecoeur 24.3 5.2 25.1 5.2 3.1

Québec/Lévis 22.7 4.8 23.5 4.9 3.7

Halifax 13.7 2.9 13.7 2.9 0.1

Fraser River1 14.2 3.0 13.2 2.8 (7.2)

Hamilton 12.4 2.6 12.6 2.6 2.0

Thunder Bay 8.2 1.7 8.5 1.8 3.2

North Arm Fraser 5.2 1.1 4.4 0.9 (15.6) River1

Windsor Ontario 5.5 1.2 5.8 1.2 5.7

Prince Rupert 4.4 0.9 7.8 1.6 76.8

Belledune 2.2 0.5 1.8 0.4 (17.0)

Nanaimo 1.9 0.4 1.9 0.4 (3.2)

Trois-Rivieres 2.5 0.5 2.7 0.6 9.0

Toronto 2.4 0.5 2.0 0.4 (19.1)

St. John;s Chicoutimi 1.4 0.3 1.5 0.3 3.6

Port Sagueny 0.3 0.1 0.3 0.1 4.2

Port Alberni 1.0 0.2 1.3 0.3 24.5

Total CPA Ports 248.8 52.9 253.7 53.0 2.0

Other Ports2 221.3 47.1 224.7 47.0 1.5

Total Hanled All 470.1 100.0 478.4 100.0 1.8 Ports2 Notes: Totals may not add up due to rounding. 1 Due to double counting in domestic traffic for Fraser River & North Fraser River ports, use Statistics Canada

116 data for 2005. 2 Estimated 2006 total traffic (478.4 millions) based on historical data & market shares of the CPA ports.

Source: Canada Port Authorities (CPA’s) web sites data

In 2005, the cargo throughput achieved by all Canadian ports was 470.1 million tons. Broken down by types of cargoes, throughput of dry bulk cargo was 211.2 million tons (44.9%), followed closely by liquid bulk cargo at 152.1 million tons (32.3%). Third was break bulk cargo at 48.8 million tons (11.9%) and then general cargo, which made up a relatively larger percentage when measured by throughput.

Table 3-4 Cargo handled by major commodity group (Millions of tonnes)

Year Dry Bulk General Cargo Liquid bulk Neo-Bulk Total

1996 203.7 34.4 70.4 48.9 357.5

1997 215.1 36.8 77.9 46.3 376.1

1998 209.0 40.0 80.1 47.0 376.0

1999 210.9 40.7 82.6 51.4 385.6

2000 213.6 42.1 90.9 56.1 402.8

2001 203.2 38.7 103.4 49.4 394.7

2002 189.3 41.2 123.3 54.3 408.1

2003 199.9 43.2 146.4 54.4 443.8

2004 203.8 47.4 146.9 55.2 453.3

2005 211.2 51.1 152.1 55.8 470.1

Source: Statistics Canada, Shipping in Canada, Cat. 54-205

In terms of modes of transportation, non-containerized transport accounted for 92.9% of total throughput while container transport accounted only for 7.0%. Ro/ro transport contributed a mere 0.1%. For more information about the throughput of each mode of transport, please refer to Table 3-5.

117 Table 3-5 Canada’s marine cargo throughput by major commodity group (Millions of Tonnes)

Cargo Type 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Value Percent（%）

Dry bulk 1.2 1.3 1.3 1.3 1.3 1.4 1.3 1.4 1.7 1.8

General cargo 12.2 13.3 14.0 15.6 16.8 16.6 17.4 19.0 21.0 22.9

Containerized Liquid bulk 1.4 1.6 1.4 1.5 1.6 1.5 1.8 1.9 1.9 1.4

Neo-bulk 3.1 3.5 3.9 4.9 5.2 4.9 6.0 7.0 7.7 6.9

Total 17.9 19.8 20.5 23.4 24.9 24.4 26.5 29.2 32.3 32.9 7.0%

Dry bulk 202.5 213.7 207.6 209.6 212.3 201.8 188.0 198.5 202.0 209.4 44.5%

General cargo 22.2 23.5 26.0 25.1 25.2 21.9 23.7 24.0 26.2 28.0 6.0%

Non-Containerized Liquid bulk 68.9 76.3 78.6 81.1 89.2 101.8 121.4 144.4 145.0 150.6 32.0%

Neo-bulk 45.8 42.7 43.1 46.4 50.9 44.5 48.2 47.3 47.4 48.8 10.4%

Total 339.5 356.1 355.3 362.2 377.6 370.0 381.3 414.2 420.7 436.9 92.9%

Dry bulk 0.1 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Ro-on/ro-off General cargo 0.0 0.1 0.1 0.1 0.2 0.1 0.2 0.2 0.1 0.2

Liquid bulk 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.1

118 Neo-bulk 0.0 0.0 0.1 0.0 0.0 0.1 0.1 0.1

Total 0.1 0.1 0.2 0.1 0.3 0.2 0.3 0.3 0.3 0.3 0.1%

Total of all modes 357.5 376.1 376.0 385.6 402.8 394.7 408.1 443.8 453.3 470.1 100.0%

Source: Statistics Canada, Shipping in Canada, Cat. 54-205

Exports contributed most to total cargo throughput, accounting for 42.9% of the national total with a throughput of 201.76 million tons. National cargo ranked second with a tonnage of 139.16 million tons and accounted for 29.6%. Imports handled a tonnage of 129.19 million tons and made up 27.5% of the total, a relatively small percentage.

Table 3-6 Canada’s marine cargo throughput by sector (Millions of tonnes)

Sector Cargo Type 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Dry bulk 0.11 0.04 0.02

General cargo 0.80 0.86 0.82 0.86 0.93 0.95 0.96 1.01 1.10 1.05 Domestic Containerized Liquid bulk 0.04 0.01 0.02 0.01 0.00 0.00 (loaded and unloaded) Neo-bulk 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total 0.84 0.98 0.88 0.89 0.93 0.95 0.96 1.01 1.10 1.05

119 Dry bulk 50.13 51.43 50.95 53.45 50.39 50.11 46.87 46.62 50.75 50.66

General cargo 6.66 6.28 6.51 6.08 6.18 5.81 6.56 7.59 8.38 9.24

Non-Containerized Liquid bulk 16.32 14.03 17.30 19.96 24.50 26.43 44.32 54.67 50.80 50.10

Neo-bulk 23.61 20.57 20.80 23.94 26.95 24.48 26.62 27.12 27.12 28.03

Total 96.72 92.31 95.55 103.44 108.01 106.83 124.37 136.00 137.05 138.03

Dry bulk 0.06 0.05 0.08 0.00

General cargo 0.01 0.07 0.07 0.07 0.08 0.06 0.08 0.07 0.06 0.08

Ro-on/ro-off Liquid bulk 0.01 0.00 0.02 0.00

Neo-bulk 0.01 0.01

Total 0.09 0.13 0.17 0.07 0.08 0.06 0.08 0.07 0.06 0.08

Domestic Total 97.65 93.42 96.61 104.40 109.02 107.84 125.41 137.08 138.21 139.16

Dry bulk 0.89 0.93 0.97 1.02 1.04 1.03 0.94 0.97 1.31 1.36

General cargo 6.24 6.55 6.75 7.54 7.83 7.73 7.21 7.79 8.69 9.44

Containerized Liquid bulk 0.47 0.50 0.48 0.49 0.51 0.44 0.53 0.60 0.61 0.43 Exports Neo-bulk 2.65 2.92 3.17 4.21 4.32 4.07 4.95 5.81 6.36 5.70

Total 10.25 10.90 11.38 13.26 13.69 13.27 13.63 15.17 16.97 16.93

Non-Containerized Dry bulk 112.68 122.13 111.46 109.00 113.32 101.08 92.57 103.33 105.18 108.48

120 General cargo 12.30 13.48 15.07 14.83 15.48 13.41 14.19 13.37 14.53 15.22

Liquid bulk 19.87 23.74 24.50 24.81 27.38 30.42 37.07 42.77 43.47 44.43

Neo-bulk 19.17 17.68 16.63 17.75 17.88 16.51 16.80 16.67 15.86 16.67

Total 164.02 177.04 167.66 166.39 174.05 161.42 160.62 176.14 179.04 184.79

Dry bulk 0.00 0.00 0.00 0.00 0.00 0.00

General cargo 0.02 0.01 0.01 0.06 0.01 0.01

Ro-on/ro-off Liquid bulk 0.00 0.00 0.00 0.00 0.00 0.00

Neo-bulk 0.08 0.03 0.01 0.02 0.01 0.01

Total 0.10 0.04 0.02 0.08 0.02 0.03

Total Exports 174.27 187.94 179.04 179.65 187.84 174.72 174.27 191.39 196.03 201.76

Dry bulk 0.26 0.29 0.28 0.30 0.29 0.35 0.39 0.42 0.42 0.39

General cargo 5.15 5.88 6.40 7.21 8.01 7.96 9.25 10.17 11.21 12.37

Containerized Liquid bulk 0.93 1.14 0.92 0.97 1.14 1.10 1.23 1.30 1.27 0.96

Imports Neo-bulk 0.48 0.61 0.69 0.73 0.83 0.81 1.09 1.15 1.38 1.20

Total 6.82 7.92 8.29 9.20 10.27 10.22 11.96 13.04 14.27 14.92

Dry bulk 39.72 40.11 45.22 47.12 48.60 50.60 48.54 48.55 46.11 50.27 Non-Containerized General cargo 3.29 3.70 4.38 4.15 3.53 2.71 2.91 3.01 3.31 3.58

121 Liquid bulk 32.74 38.51 36.84 36.34 37.31 44.95 40.05 46.98 50.71 56.12

Neo-bulk 3.03 4.46 5.65 4.74 6.06 3.50 4.83 3.55 4.45 4.09

Total 78.77 86.78 92.09 92.35 95.49 101.76 96.34 102.08 104.58 114.06

Dry bulk 0.00 0.00 0.00 0.00 0.00 0.00

General cargo 0.09 0.07 0.07 0.08 0.07 0.08

Ro-on/ro-off Liquid bulk 0.05 0.06 0.06 0.06 0.06 0.07

Neo-bulk 0.02 0.01 0.04 0.05 0.06 0.06

Total 0.15 0.15 0.17 0.19 0.19 0.21

Total Imports 85.59 94.71 100.38 101.55 105.92 112.14 108.46 115.31 119.04 129.19

Total 357.51 376.07 376.03 385.60 402.78 394.70 408.14 443.78 453.28 470.11

Source：Statistics Canada, Shipping in Canada, Cat. 54-205.

The cargo throughput achieved by those ports under the leadership of 21 Canadian port authorities was 375.5 million tons. That of other ports was a mere 94.61 million tons.

122 In 2005, the container throughput of foreign trade totaled 381 million TEUs and hit 31,240,000 tons, up by 3.3% over 2004. Similarly, the year 2006 saw the container throughput of foreign trade increase 2.0%, reaching 31,860,000 tons, which includes imports of 14,920,000 tons and exports of 16,490,000 tons, up by 4.5% and 0.2%, respectively.

Table 3-7 International shipping - container traffic in TEU's

Handling Port 2004 2005 change（%）

Vancouver 1,664,926 1,768,443 6.2%

Montréal/Contrecoeur 1,145,713 1,119,337 -2.3%

Halifax 492,001 509,798 3.6%

Fraser River 332,628 354,251 6.5%

Saint John 46,854 49,424 5.5%

Argentia 5,681 7,857 38.3%

Shelburne 2,696 3,586 33.0%

Other ports 1,284 1,073 -16.4%

Total 3,691,783 3,813,769 3.3%

Source: Statistics Canada, Shipping in Canada, Cat. 54-205.

In 2006, Canada had a passenger throughput of 42,500,000 persons, 2,500,000 of whom were from international shipping lines and 40,000,000 of whom were from domestic shipping lines. Among all Canadian ports, the Port of Vancouver boasted the largest passenger volume with its passenger throughput reaching 837,823 persons in 2006. The Port of Halifax ranked second with a total handling capacity of 169,824 persons. The Ports of Saint John, Quebec, and Montréal ranked the 3rd, 4th, and 5th, respectively.

In 2007, port rankings remained the same in terms of passenger capacity. The Port of Vancouver boasted the highest figure of 960,000 persons, increasing 14.6% year-on-year. The Port of Halifax remained in second place with a total handling capacity of 176,895 persons, increasing 4.2% year-on-year. The Port of Saint John remained in third place and grew at a rate of 52.3% with a total passenger capacity of 133,676 persons, 45,917 more than in 2006. There was a slight increase in passenger throughput in Quebec, up by 2.2% year-on-year. By contrast, there was a significant drop in passenger throughput in Montréal with a total passenger capacity of 34,809 persons, down 14.2% year-on-year.

123 Table 3-8 International Passenger-Kms for the marine mode (cruise ship) (Million)

Pass.-Kms Passengers

2000 -- 1,626

2001 2.2 1,533

2002 2.3 1,811

2003 2.2 1,719

2004 2.4 1,972

2005 2.5 1,978

2006 2.5 --

Notes: -- Not available.

Source: Transport Canada & Statistics Canada.

Table 3-9 International traffic at major Canadian ports (Person)

Year Vancouver Montréal Québec Halifax St. John

1993 519 942 30 626 38 642 30 917 12 379

1994 591 409 33 920 36 401 37 717 23 629

1995 596 724 27 384 38 981 30 257 12 226

1996 701 547 19 078 21 464 36 584 8 543

1997 816 537 29 324 36 569 44 328 19 813

1998 873 102 32 583 43 838 47 987 28 418

1999 947 659 18 306 34 628 107 837 40 000

2000 1 053 989 25 200 35 855 138 313 101 410

2001 1 060 383 23 900 48 776 160 241 88 190

2002 1 125 252 38 000 66 365 157 036 71 168

2003 953 376 33 600 59 000 170 425 83 946

124 2004 929 976 43 385 71 280 212 834 138 800

2005 910 172 35 359 66 000 188 678 90 203

2006 837 823 40 565 64 720 169 824 87 759

2007 (prel.) 960 000 34 809 66 152 176 895 133 676

Source: Canadian Port Authorities (CPA) web sites data

IV. Pilotage Services

With the goal of regulating the development of pilotage services, a special Pilotage Act was passed by the Canadian Government to regulate pilotage organizations, employment, and management of pilots and serves as an institutional guarantee for the sustainable development of the Canadian pilotage sector.

According to the Canadian Pilotage Act, the Crown Corporation brought 4 pilotage authorities into operation, including the Atlantic Pilotage, Laurentian Pilotage, the Great Lakes Pilotage and Pacific Pilotage organizations. Those self-funded organizations are engaged in pilotage services in designated areas.

As of end 2007, Canada had a total number of 415 pilots. Due to their concerted efforts, Canada piloted 52,413 ships in 2007, down 1.41% from 2006 (53,164 ships). Among all four pilot stations, the year 2007 saw a slight drop in the number of ships piloted. The Atlantic Pilotage authority had 56 pilots and handled 9,799 ships in 2007, which is 242 less than in 2006. The Laurentian Pilotage authority had 190 pilots and handled 23,162 ships, down by 0.4% year-on-year. The Great Lakes Pilotage authority had 61 pilots and handled 6,440 ships, 491 less than the 2006 figure. However, the Pacific Pilotage authority was an exception, as it boasted a total of 108 pilots and handled 13,012 ships, 67 ships more than in 2006.

Table 4-1 Employment by Canadian Pilotage Authorities

Year 1999 2000 2001 2002 2003 2004 2005 2006 2007

Atlantic Pilotage 10 10 11 11 11 8 9 9 10

Administration 67 69 69 62 62 61 60 61 61

Pilots1 9 9 9 9 9 9 9 9 9

Other2 86 88 89 82 82 78 77 79 80

125 Total

Laurentian Pilotage 7 7 8 8 8 10 10 10 11

Administration 52 52 55 54 54 54 54 54 56

Pilots1 17 19 19 19 18 19 19 19 18

Other2 76 78 82 81 80 83 83 83 85

Total

Great Lakes Pilotage 15 15 15 14 14 13 13 13 13

Administration 176 173 177 173 172 170 174 175 190

Pilots1 29 30 30 30 29 29 28 30 30

Other2 220 218 222 217 215 212 215 218 233

Total

Pacific Pilotage 12 12 12 12 12 12 12 12 12

Administration 115 116 114 114 110 110 110 109 108

Pilots1 40 40 40 37 37 37 37 37 37

Other2 167 168 166 163 159 159 159 158 157

Total

Canada 44 44 46 45 45 43 44 44 46

Administration 410 410 415 403 398 395 398 399 415

Pilots1 95 98 98 95 93 94 93 95 94

Other2 549 552 559 543 536 532 534 538 555

Notes: 1 Number of contract pilots are included in figures shown for "Pilots". 2 Other includes dispatch, pilot boat and other unspecified services.

Source: Pilotage Authorities

126

Table 4-2 Total pilotage assignments and assignments per pilot in Canada

Pilotage 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Authority Total 9 11 11 11 11 12 11 11 10 9 Atlantic Assignments 726 090 498 751 804 510 848 690 041 799 (APA) Assignments 187 213 229 240 231 223 219 216 183 75 per Pilot Total 22 21 20 18 19 19 20 22 23 23 Laurentian Assignments 018 654 713 655 149 599 439 197 247 162 (LPA) Assignments 121 120 114 96 111 114 120 128 133 122 per Pilot Total 9 8 8 7 7 5 6 6 6 6 Great Lakes Assignments 085 108 605 151 510 943 628 443 931 440 (GLPA) Assignments 147 118 106 106 119 94 107 108 113 103 per Pilot Total 13 13 14 13 12 12 13 13 12 13 Pacific Assignments 267 776 585 435 655 952 002 219 945 012 (PPA) Assignments 115 117 130 118 116 118 110 120 123 125 per Pilot Total 54 54 55 50 51 51 51 53 53 52 Total All Assignments 096 628 402 992 118 004 917 549 164 413 Authorities Assignments 132 131 129 120 129 123 131 135 134 122 per Pilot

Source: Pilotage Authorities, Annual Report

127