Recently the ceremony “Gathering in New Huangpu, Setting Sail from Dawan Bay” cum “Measures for Promoting Shipping Development” release and promotion conference was held at Guangzhou International Port and Shipping Center. At the conference, Measures of Guangzhou Huangpu District and Guangzhou Development District for Promoting Development of Modern Shipping Service Industry (the Measures) was officially promulgated. The Measures will aim at promoting Huangpu Old Port transformation and upgrade, building the port headquarters economy and port and shipping service clusters, and constructing the international shipping element concentration core area relying on Huangpu Port Economic Development Zone. The priorities will be given to developing comprehensive shipping service and high-end shipping services with major breakthroughs and support. The high-end shipping elements will be given top priority and gathered, complementary to the construction of the second central business district (CBD) of Guangzhou to form mutual supplementary industrial advantages and competitiveness.
As the core area of Guangzhou’s second CBD, Huangput Port Economic Development Zone will see an increase of 3 million square meters of the commercial carriers after the projects under construction are completed. With construction of East Extension of Linjiang Avenue, Phase II of Metro Line 7, the Cruise Terminal, Poly Yuzhu Harbor, Port and Shipping Center, COSCO Tower and other important projects, the area is expected to become a new economic growth pole of high-end shipping services of east Guangzhou.
“10-Article Golden Measures and Jade Measures” have granted RMB780 million support funds
The core of such measures includes seven clauses on settlement award, operation contribution award, management talent award, office subsidy, capital support, park operation award and large-scale event awards.
Of that, the project settlement award is up to RMB3 million for introducing the port and shipping projects, financial and high-end headquarters and other high-end shipping elements. The newly introduced shipping laws, shipbuilding technology and shipping culture enterprises will enjoy an award of 20% of the paid-in registration capital of such enterprises, not exceeding RMB3 million. The newly introduced ship management and cruise service enterprises will be granted an award of 10% of their paid-in registration capital, RMB3 million the highest. For the newly introduced domestic and international renowned shipping research institutes, trading service institutions, certification institutions and other functional institutions, an award of RMB2 million will be granted to domestic institutions, and RMB3 million to international institutions.
High awards are designed for high growth enterprises and enterprises which settle in Huangpu Port Economic Development Zone. The newly introduced enterprises whose operating revenue reaches the statistics threshold and which realize positive growth, will enjoy an award of 40% of their economic contribution of the year to the district; enterprises which settle in Huangpu Port Economic Development Zone will enjoy an award of 50% of their economic contribution of the year to the district. For the newly introduced enterprises which registered with Huangpu Port Economic Development Zone, if its local economic contribution reaches RMB10 million in any year within three years after registration, an award of RMB10 million will be granted for the outstanding operation.
High-end talents will be awarded heavily. Each enterprise has a quota of 10 executives for the management talent award. Each executive will enjoy an award not exceeding RMB3 million and the award will be directly transferred to the personal account of the winner. A lump-sum subsidy of RMB1000/m2 will be granted for purchase of self use office in the district, and the subsidy will not exceed RMB3 million. A subsidy of RMB40/m2 per month will be granted for the office rent for self use, and each year the subsidy will be as high as RMB1 million.
Financial and auxiliary support will be provided. A subsidy of 50% of the part of loan costs that is higher than the benchmark interest rate of the People’s Bank of China will be granted, and the length of maturity of each loan shall not exceed one year, and the subsidy of interest for each enterprise will not exceed RMB500,000. For projects which have received capital support from Guangzhou International Shipping Center Construction Funds, a superposition subsidy of 50% of the support will be granted, the highest RMB5 million. Those which are recognized as the Modern Shipping Service Agglomeration Park will enjoy an award of RMB500,000 a year for three years, totaling RMB1.5 million.
In addition, for the domestic and international shipping conference, exhibition, training, seminar and research projects or other events with high influence, an award will be granted according to the influence of the event. The provincial event will enjoy an award of RMB1 million, and a state-level event will be given an award of RMB2 million, and an international event RMB3 million.
According to Guangzhou Development District(GDD) Policy Research Office, the modern shipping service industry, especially high-end element enterprises of modern shipping industry, has a relative small scale, and cannot meet conditions of award and support designated in the original modern service industry support policies. The modern shipping service industry development policies issued this time effectively make up the blind spot of policies, and realize the purpose of attracting high-end shipping elements to Huangpu District and GDD. Meanwhile, it is an important measure for Huangpu District and GDD to response to the Three-Year Action Plan of Guangzhou for Building the International Shipping Center, and helps promote construction of Guangzhou’s second CBD, facilitate optimization of the “one river, two banks and three belts”, enhance concentration of high-end shipping elements centering on the international shipping hub strategy, accelerate development of the modern shipping service industry, establish the high-end shipping service functional zones, gear to the “Belt and Road” Initiative and proactively blend in the 21st Century Maritime Silk Road construction.
The Measures is formulated as supplement of the Measures to Boost the Development of Modern Service Industry of Huangpu District and GDD. This year Huangpu District and GDD have promulgated four 10-Article Golden Measures and two 10-Article Jade Measures to boost industrial development. So far RMB780 million of awards have been granted to 1020 enterprises, and the district has submitted an excellent performance transcript: in the first half year, the district has actually used US$1.457 billion of foreign capital, ranking Guangzhou’s first position, and accounting for 40% of Guangzhou’s total. The policy dividends have attracted more than 500 enterprises to negotiate cooperation and facilitated settlement of more than 50 important projects.
Vacating cage to exchange birds and to build the regional shipping industrial cluster
On the site of the event, the sponsors have held the inauguration ceremony of Guangzhou International Port & Shipping Center Co. Ltd. and eight port and shipping service enterprises, including Guangzhou Port Group and China Duty Free Group, and Quanzhou Antong Logistics Co. Ltd. signed settlement agreements.
The Port and Shipping Center covers an area of 79,000m2, and has a construction area of 430,000m2. It is listed as a major construction project of Guangzhou, one of the Six Highlights of the Pearl River Golden Bank, and a breakthrough of “one river, two banks and three belts”. Phase I has been completed in last October and Phase II has completed the foundation construction. The main body engineering will start in July this year and is expected to accept examination at the end of April 2019.
Guangzhou Port Group said the Port and Shipping Center will be positioned at building the shipping industry agglomeration zone and regional headquarters of South China. The project will base on the shipping infrastructure of Guangzhou Port, mainly introduce some large-scale ship enterprises and logistics enterprises, international ship agencies and forwarders, and supporting information services, shipping finance and ship agencies and other service enterprises to form the regional shipping industry clusters. At a 52-floor building, the center will gradually improve the supporting services and the business center, and the swing will develop catering, hotels and life service zones.
In the past Huangpu prospered because of Huangpu Port. Today, Huangpu Port Economic Development Zone is undergoing the “three olds” (old factories, old villages and old cities) transformation, and become an economic growth pole of modern high-end service concentration of east Guangzhou. With construction of East Extension of Linjiang Avenue, Phase II of Metro Line 7, the Cruise Terminal, Poly Yuzhu Harbor, Port and Shipping Center, COSCO Tower and other important projects, Huangpu District and GDD will gradually shift the focus to development and construction of the second CBD (Guangzhou International Financial City-Huangpu Port Economic Development Zone).
The “three olds” transformation of Huangpu Port Economic Development Zone enjoys high late-mover advantages, and the old factories, old villages and old towns that can be transformed are in a large scale. At present, 81 projects have been included in the plotting library, covering an area of 1055 hectares. Currently 15 transformation projects are under processing, with a total area of 6.12 million m2, and about 3.9 million m2 are included in the 2014-2020 land reserve.
Not far from the Port and Shipping Center, COSCO Tower, the South China Headquarters of COSCO, has started construction in last December and is expected to be completed within three years. “From the perspectives of market and logistics, the shipping center of China is shifting southward and Guangzhou should meet the trend to build the International Shipping Center,” said a director of COSCO Shipping Specialized Carriers Co. Ltd.
Last June, COSCO Shipping Bulk Co. Ltd., a flagship of the bulk shipping business after merge of the two large-scale central enterprises China Ocean Shipping(Group) Company and China Shipping (Group) Corporation, chose to register its headquarters at Nansha, Guangzhou. COSCO Shipping Bulk owns and controls 382 bulk ships, 34.58 million deadweight tons, and annually handles more than 340 million tons of cargo. It boasts a shipping network that covers more than 10,000 ports from over 100 countries and regions, and a cross-border and cross-regional global marketing network, and the world’s largest shipping capacity. Since its settlement, COSCO Shipping Bulk has cooperated with Guangzhou Port Group, Yingkou Port, Zhejiang Liyuan Maritime Transport Co. Ltd. to open the quasi-liner for the grain transportation from the north to the south. It takes only 80 hours from Nansha Port to Yingkou Port.
Huangpu and Nansha are important bases for the international shipping center construction of Guangzhou. It accords with COSCO Bulk Shipping’s idea of locating its bulk shipping business in Nansha and its comprehensive headquarters in Huangpu. Nansha boasts deep-water channels for berthing dozens tonnage ships. Huangpu enjoys a profound base of shipping industry. Both parties can enjoy complementary advantages in future.
Huangpu Port Economic Development Zone embraces rapid development opportunities
As an important transport hub of South China, Guangzhou enjoys developed highway, waterway and railway networks, and distinctive advantages on river-sea multimodal transport. The advantages decided Guangzhou’s development structure in the past that was centered on domestic trade with supplementation of foreign trade. Today, the energy and raw material distribution center of South China is located in Guangzhou, making Guangzhou Port rank the first of the Pearl River Delta in the bulk cargo handling. At present, the domestic trade and the bulk cargo account for 50%-60% and 70%-80% of Guangzhou Port’s total, respectively.
The foreign trade goods of some leading manufacturing enterprises located west to the Pearl River were transported through Shenzhen or Hong Kong in the past. Today they choose to send 50% to 90% goods to Nansha Port to distribute abroad and the transport costs and time costs are lowered by nearly two thirds, Guangzhou Port Group tells Invest Guangzhou.
Based on the current situation, Huangpu District and GDD have gradually shifted their focus to development and construction of the second CBD, and the planning and international consulting for the purpose have been rolled out. Efforts have been made to accelerate construction of road networks such as the East Extension of Linjiang Avenue and Phase II of Metro Line 7, and the major projects such as Poly Yuzhu Harbor, Port and Shipping Center, and COSCO Tower. In future, it will undertake more high-end industries and headquarters enterprises. Huangpu Port Economic Development Zone will embrace an unprecedented development golden times and window period.
Guangzhou’s efforts of building the international comprehensive transport hub will drive development of Guangzhou-Foshan integration, Guangzhou-Qingyuan integration, Guangzhou-Foshan-Zhaoqing-Qingyuan-Yunfu-Shaoguan Economic Circle, and Guangdong-Hong Kong -Macao Life Circle to jointly develop the world-class city agglomeration of the Pearl River Delta, lead development of the Pan-Pearl River Delta and influence Southeast Asia. Guangzhou Port, the shipping hub port, is working hard toward the goal as shown by its historical development and future positioning.
Source: Invest Guangzhou, June 5, 2017