|
 Sino-Global
is proudly attending the
ASBA Cargo Conference 2006. Our Senior Consultant, Mr. Dai Qiu Shan,
will be presenting his paper on opportunities in the Chinese shipping market on
October 5th.
The paper is focused on current movements and future prospects on imported iron
ore, the ability to compete for a share of this market, feasibility of the Cao
Fei Dian project, coastal activities, and collaborating agencies.
We hope to see you all there and for those who are not attending this year’s
conference, Mr. Dai’s paper is available to read on our website.
Other Sino-Global attendees:
Lusia Liu, Operations Manager, Beijing.
Patrick Kenny, Operations Manager, New York.
Opportunities in the Chinese shipping
market
A
friendly reminder
When signing up a charter party, please do not easily give up your
agency appointment option because:
-- The other party’s agency does not have
motivation to bring high quality services to you.
-- When there is a business
conflict, if an agent is not directly representing on your behave,
then the statement
of fact which is provided by this agent will not be in favor of you in law
sues.
Iron Ore Price Hike Nears Agreement
It appears as though the highly anticipated agreement over the
increase in the price of iron ore will be settled in the near future between
the Chinese and the Brazilians. After the steel producers in Germany, Japan,
and South Korea have agreed to a raise of 19 percent it has emerged that the
Chinese will most likely do the same.
The Chinese steel mills have led the discussion over the price rise
for 2006 with the Brazilian miners. The Australian miners are in accord with
the standard price increase that the Brazilians are attempting to set.
After last year’s record setting price increase of 71 percent set
by the Japanese, the Chinese mills wanted to control the price increase for
2006. The Brazilians had aimed for an increase of 24.6 percent, while the
Chinese held fast to a raise of 12.5 percent. The miners foresaw limited supply
and high demand for 2006, while the mills have argued that spot prices have
eased and that steel prices will diminish.
Sino-Global and Shou-Rong JV
In July 2005, Sino-Global signed a joint venture with Beijing
Shou-Rong Forwarding Service Co., Ltd., an affiliate of Shou Gang Group
(Capital Steel) one of the largest steel producers in China. Sino-Global is now
entrusted with the exclusive responsibility of the discharging matters of the
group’s yearly iron ore imported volume of approximately 16,000,000 metric tons
at all 74 Chinese ports.
Shougang and Tangshan Steel launch JV today
The joint venture between Shougang and Tangshan Steel in Hebei
province will be officially launched today (21 October). As the
controlling party of the JV, Shougang will own 51% of the shares, while
Tangshan Steel takes the rest, it has learnt from a Shougang official.
The JV's new plant is set to reach a capacity of 9.6m t/y by 2010, and could
expand to 20m t/y or even 30m t/y in the future if the market allows, it
understands from an official working with the new company. However, the JV
approval that Shougang received from the NDRC in February is only for 8m t/y
for 2010, as previously reported.
The official also tells that the company will install four blast furnaces of
5,500 cubic meters in two phases. This investment will make these the
largest individual blast furnaces in China. Most are 3,000 cubic meters
or less.
The new JV company will also install three 330t BOFs. However, the
details of its finished product structure are not known, with the official
saying only that it will focus on high-value flat products.
China inshore ports are encountering the benefits and the challenges brought by
the globalization of the Chinese economy
In China many of the inshore ports are encountering the benefits and the
challenges brought by the globalization of the Chinese economy. At the 24th
World Port Conference held in Shanghai, Zhang Chunxian, minister of The
Ministry of Communications, predicted that the port output is going to reach
6.1 billion mts and the container output is going to reach 1.4 hundred million
mts by the end of year 2010.
Currently the general scale and output of China’s ports are ranked first in the
world. Among all the ports, 8 are in the hundred-million-mts-throughput
mega port class. The output of Shanghai port has past Rotterdam to be the
second biggest freight port after Singapore.
Freight output of Ningbo port passed 2 hundred million mts
By Sep 26th, 2005, freight output of Ningbo port passed
the 2 hundred million mts milestone, increasing by 22% of the same period in
2004. Of all these, port output is 1.35 hundred million mts, increasing by over
16.5% of the same time last year; container output is 3.678 million TEU,
increasing by 30% of the same time last year. The output in Ningbo port
for the past 2 thousand million mts was reached 57 days faster than last year.
Since 2000, Ningbo’s output has been second among all the mainland ports.The
rate of output for this year is optimistic, and is continuing to
increase. It is estimated to reach 2.7 hundred million mts and port
output increase can reach 1.8 hundred million mts. The monthly container
output has broke former records. The output for the whole year should
past 50 million TEU, and has the possibility to achieve the goal of getting the
increasing rate at 30%. Increasing tendency of iron, core oil,
liquid chemical and other basic goods are strong; loading/discharging of iron
is estimated to pass 300 million mts again and has the possibility to reach 330
million mts, loading/discharging of core oil has the possibility to break
throuth 300 million mts for the first time, loading/discharging of coal is
estimated to reach 140 million mts and liquid chemical is estimated to reach
300 million mts.
Mainland
box growth soars
After a year of strong growth, container businesses on the mainland
are looking forward to another profitable year.
Exports are shooting up after years of stagnation; ports are putting in
more deep-water berths and railways are building container terminals. The
Internet is simplifying formalities and cutting waiting times at docks and
terminals. However, competition is still intense, despite there being revived
sources of cargo.
Official statistics put the volume of international container transport along
the coastal ports at 15 million TEUs in 1999, an increase of 39 per cent from
the year before.
Although Shanghai's growth in container volume fell slightly short of the
national average, the mainland's largest port still made history last year by
handling 4.2 million TEUs. The annual increase of 1.14 million TEUs is a
record for China.
Container volume and cargo turnover in Shanghai are likely to grow this year,
as the city's state enterprises regain their momentum in terms of foreign
trade, and as foreign-funded enterprises increase their imports of materials
and sales of finished products overseas.
Road-sea and rail-sea transport in the Yangtze River delta will also
grow. Shanghai Shipping Centre is planning to invest billions of yuan
over the next few years in deep-water berths and channels navigable by
fifth-generation container vessels.
The highest growth rate of 70.6 per cent was registered at Ningbo in Zhejiang
Province. Although annual volume of 601,000 TEUs ranked it only eighth
among coastal container ports, the total cargo turnover handled at the port
climbed to third largest in the nation, hitting 96.6 million tonnes.
At Shenzhen in South China, nearly three million TEUs were handled in 1999, up
52.6 per cent from the year before, making it the second port in terms of
volume. Last year, 20 per cent more vessels on 23 international sea routes
visited the Yantian Port - as overseas investors and carriers built offices
there.
Average
Discharging Efficiency of Iron Ore of Ningbo Port Reaching 0.1 Million Tons/day
Beginning from April, in light of busy operation of iron ore,
Beilun Limited-liability Company of Ningbo Port used 5 ship-unloaders for
operation simultaneously. From April 1 to 24, a total of 2.41 million
tons of iron ore were discharged at the company, allowing the average iron ore
discharging efficiency to reach 100,000 tons per day, taking the leading
position among the ports of mainland China. The picture shows 5 ship-unloaders
were discharging simultaneously from CAPE HERON carrying 175,000 tons of iron
ore and JOHNNYK carrying 154,000 tons of iron ore.
New
Packing Equipment In Operation at Beilun Second Stevedoring Company
On April 23, the first mobile auto packer for bulk goods was put
into trial operation at Beilun Second Stevedoring Company of Ningbo Port
Group. After 2 days operation, the packing output by a single machine in
24 hours increased 120 to 180 tons more than manual packing. The auto packer
was made by Changzhou Weike Auto Weighing Apparatus Company. It was advanced in
design, capable of packing without waiting. The designed packing capacity is
1200 package per hour. It adopted PLC controlling system with highly
accurate pneumatic components, so it will be long lasting in use.
Compared with the original manual packing, the auto packer is
characterized by high efficiency, less labor intensity, less manpower put-in,
high metering accuracy, convenience and cleanness. The company invested more
than 4.6 million yuan in reforming the bulk goods packing equipments.
Under the fine operation of the first auto packer, the company will carry on
reforms to the packing facilities on the general berth and storage yards.
The project is estimated to be completed by the end of June.
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