CHINA MARITIME LAW NEWSLETTER
Vol. 1, No. 3 - December 8, 2000
TOPICS THIS ISSUE:
- S&P report: China Second-largest Shipper
- Shanghai Port Capacity Exceeds Five Million TEUs
- China Moves to Increase Container Volume on Inland Waterways
- New Maritime Safety Rules Take Effect
- Shenzhen Anticipated to Join the Top Ten Global Container Ports
S&P report: China Second-largest Shipper
A recent report by Standard & Poor's found China to be the second largest shipper in the world, shipping almost 10 million standard containers per year.
China's three largest harbors (Guangzhou, Ningbo and Shanghai) combined have a capacity of 100 million tons per year or more. There has also been rapid development of container ports in Shenzhen, Dalian and Tianjin over the past ten years.
Many observers expect China to lead Asia in container capacity by about 2015.
(Source: China Online, Wen Wei Po Daily)
Shanghai Port Capacity Exceeds Five Million TEUs
The Port of Shanghai reportedly has a current handling capacity of over five million twenty-foot equivalent units (TEUs). The port is now the 6th largest in the world. It is the first Chinese port capable of handling over 5 million TEUs per year. The port expects to handle over 5.5 million TEUs by the end of this year.
The increase in the handling capacity of the Port of Shanghai over the past 2 decades is dramatic. In 1978, capacity at the port was less than 2,000 TEUs. By 1999 that number had increased to more than 4.2 million TEUs. Over the same period, the port has begun 16 regular container-shipping routes to ports around the world. The port has also set up a domestic container transport system connecting 40 domestic ports.
Not satisfied with the current state of the port, Shanghai has begun an expensive project to develop new facilities and purchase the latest equipment.
(Source: Worldnews.com)
China Moves to Increase Container Volume on Inland Waterways
The Ministry of Communications recently announced the implementation of a three-step plan to develop container transport along China's extensive internal river system.
China hopes to create a comprehensive transport network on the rivers that will be compatible with international intermodal transport and distribution systems. The plan calls for more containers to be moved on its river network, which should encourage intermodal operations and improve logistics away from the main seaports.
One network is planned to cover the Yangtze, China's longest river, with main hubs at Shanghai, Nanjing, Wuhan and Chongqing. A second network will serve the Pearl River linking Guangzhou, Shenzhen and Hong Kong.
Additionally, China plans to introduce new port equipment and advanced container ships to improve the overall quality of the industry. The plans also call for development of container transport information technologies and information systems to improve management.
With Shanghai's Longwu port as its center, a container transport system has been created, which includes ten-odd shipping companies and links with the major river ports around China.
55 ports on inland rivers in China are currently handling containers. China's river ports have handled 1.92 million TEUs in the first 9 months of this year, which is an increase of 44 percent over the same period last year. By the end of the year, this total should grow to about 2.7 million TEUs.
(Source: People's Daily, Journal of Commerce Online)
New Maritime Safety Rules Take Effect
Beginning December 1, all ships passing Chengshanjiao Promontory in the sea area off the Shandong Peninsula need to follow the new mandatory ship reporting and routing systems. The two new systems were adopted by the International Maritime Organization (IMO) this June as international maritime rules. The two regulations are the first group of Chinese maritime regulations to receive IMO adoption.
The waters off Chengshanjiao Promontory are one of China's major sea passages and fishing grounds. 150,000 ships pass or fish there annually, over 60 percent of which are foreign vessels.
However, complicated hydrometeorological conditions there often result in maritime accidents. China made the regulations in order to standardize passage for ships and avoid ship collisions.
According to Liu Gongchen, deputy director of the Maritime Safety Administration of China, the two regulations have helped to significantly reduce local accidents by 61 percent since 1997. He also stated that the regulations will soon be used in other major sea passages, including the Laotieshan Waterway, the Guangzhou Dangan Waterway, and the waterway at the mouth of the Yangtze River.
(Source: Xinhuanet, China Daily)
Shenzhen Anticipated to Join the Top Ten Global Container Ports
The Port of Shenzhen expects to handle more than 4 million TEUs this year. If this goal is realized, Shenzhen would be in the top 10 ports worldwide.
Tang Yaozhi, deputy secretary general of the municipal government, stated that Shenzhen has handled 3.2 million TEUs so far this year through October, an increase of 34% from the same period last year.
Officials in Shenzhen plan to start construction of new facilities designed to allow the port to remain open to traffic in all weather conditions, and to be compatible to the most modern container ships.
(Source: Journal of Commerce Online)
Lehman Lee & Xu
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(formerly known as the L&A Law Firm)
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