YANTAI: Thanks to the transformation of economic growth mode and diversified financing, Longkou Port in Shandong Province was awarded National May Day Labor Prize this year, the only one among Shandong`s port groups to receive the honor.

The total assets of Longkou Port, one of the country`s first 29 coastal ports, increased from 760 million yuan to 3 billion yuan in the past five years, while its throughput grew from 6.2 million tons to 25 million tons, increasing 294.7 percent and 303.2 percent respectively.

Focusing on the coal, liquid chemicals, ore, grain transportation and container service sectors, Longkou Port is fast becoming a comprehensive and modernized port in the Bohai Bay area.

It has set up strategic and cooperative relationships with more than 10 shareholders so far, such as Sinopec Binzhou Company, Singapore Kangji Group, Zibo Nanjinzhao Group, Dongping Minerals (Canada) Co Ltd, the Transportation Company of State Development and Investment Corp (SDIC) and the Nanshan Group in Longkou.

Within five years, 10 joint ventures (JVs) have been established.

The contract value of the 10 JVs has reached 5.3 billion yuan, while the total value of projects that have been established and implemented has touched 3 billion yuan.

April 2003 witnessed the establishment of Bingang Liquid Chemical Dock Co Ltd, jointly invested by Longkou Port, the Sinopec Binzhou Company and the Singapore Kangji Group. It was the first joint dock venture in the port district.

With the help of foreign capital, the new port has grown rapidly, with a 50,000-ton berth for liquid chemicals built and put into use in less than one year.

The Bingang Fuel and Chemical warehouse has huge oil tanks produced by Sinopec Qilu Company Ltd and other enterprises. This year, the liquid chemical throughput is expected to reach 4.6 million tons and will exceed 10 million tons by 2010.

Bingang Dock is just a start. Longkou Port is pursuing cooperation with corresponding large enterprises both at home and overseas.

To build a regional coal distribution center, the port worked together with the SDIC and Nanshan Group in Longkou to establish SDIC Longkou West Port Development Ltd, to jointly develop the Qimu Island deep-water dock.

In the long run, 16 specialized coal berths are expected to be built, ranging from 5,000-ton-class to 150,000-ton-class.

To expand the port`s functions and accelerate sea-route dredging, Longkou Port collaborated with Guanquan Navigation Engineering Co Ltd in Zhoushan and Tianjin Navigation Bureau to set up Jingang Dredging Engineering Co Ltd in Longkou and invested 80 million yuan in dredging.

Since the establishment of the first JV, more than 10 companies from home and abroad have participated in the development of the port.

The JVs deal with the loading, unloading, storage and transfer of liquid products, ore, coal, and alumina, as well as sea-route dredging, railway management and other sectors.

To the 600 million yuan invested last year, the port will add 700 million yuan this year for its development.

The 100,000-ton-class Qimu general purpose berth project is under construction and the 100,000-ton-class sea-route project will begin soon.

Further, Jingang Railway of Longkou Port linking Da Jiawa, Lai Zhou and Longkou has been operational, adding a much-needed railway connection to Longkou Port.

(China Daily 11/07/2007 page13)