With the signing of the China-South Korea Free Trade Agreement, a battle for port logistics has begun while various regions are fighting for policy dividends.
"The signing of the China-Korea FTA is definitely a very good opportunity for Weihai Port." In mid-June, Zhang Ping, general manager of Weihai Port Group, told the reporter of "Daily Economic News". Relevant persons from the Weihai Municipal Bureau of Commerce also said that as the undertaking of trade goods between China and South Korea, the three national-level open ports in Weihai will undoubtedly usher in the greatest benefits.
However, facing the big cake of China-Korea FTA, Weihai Port cannot eat alone. Similar to South Korea, many ports in China's Bohai Rim have been eyeing this piece of cake.
Regional customs clearance integration bonus
At present, Weihai has opened 5 sea passenger routes to South Korea, with 30 ro-ro passenger flights per week. Weihai has become the city with the highest density of sea routes between China and South Korea.
According to data provided by Weihai Port, in 2014, Weihai Port completed a port throughput of 42.88 million tons, a year-on-year increase of 7%, and its annual revenue reached 1.576 billion yuan, a year-on-year increase of 75.01%.
Zhang Ping believes that the advantage of Weihai Port is that it is a regional center between China and South Korea.
According to customs statistics, in the first quarter of this year, the import and export value of Weihai Port to South Korea was 19.59 billion yuan, a year-on-year increase of 35.1%, accounting for 68.4% of the total import and export value of Weihai Port and 27.4% of the total import and export value of Shandong Port to South Korea. First in the province.
In the view of Weihai Mayor Zhang Hui, the achievement of this achievement is inseparable from the high customs clearance efficiency of Weihai. "Weihai's customs clearance efficiency is the first in the entire Shandong port, especially the customs clearance of products with South Korea."
According to data provided by the Weihai Municipal Bureau of Commerce, compared with the US$5.228 billion worth of trade between Weihai and South Korea in 2014, the total amount of goods exported to South Korea from Weihai's three open ports reached US$20.44 billion. An official from the Weihai Municipal Bureau of Commerce pointed out that this means that some commodities may be declared from the customs of other places such as Ningbo, but left from Weihai, which also reflects Weihai's geographical advantage.
Weihai Customs officials said that this benefited from the integration of regional customs clearance dividends. Weihai, which is located under the jurisdiction of Qingdao Customs, the leader in reform, will also enjoy the dividends of the integrated reform of customs regional customs clearance in the Silk Road Economic Belt.
In Zhang Ping's view, with the official implementation of the China-Korea FTA, the throughput of Weihai Port will usher in a blowout period. "The current annual growth rate is about 10%. After the implementation of the China-Korea FTA, it is predicted that container growth will reach about 20%."
A relevant person from Weihai Port told reporters that relying on trade with South Korea, Weihai Port is only in the International Logistics Park and will realize a net profit of 35 million yuan per year, which is enough to make Weihai Port turn around its losses as a whole.
However, Weihai Port is not short of competitors, including Yantai, Qingdao, and Rizhao.
Close combat in Bohai Rim ports
How big is the cake in the China-Korea Free Trade Zone?
According to Korean Customs statistics, the bilateral trade volume between China and South Korea in 2014 was 235.4 billion U.S. dollars. According to data from the Ministry of Commerce of China, the trade volume between China and South Korea, which was only US$90 billion in 2004, jumped to nearly US$300 billion in 2014, with an average annual growth rate of 22.3%.
Shenwan Hongyuan Securities pointed out in the research report that most of the goods trade between China and South Korea comes from maritime transportation. The China-Korea FTA will bring about an increase in maritime transportation and related port throughput, and major northern ports and shipping companies will take the lead in benefiting.
In the China-Korea FTA, Weihai has become a model city for China. However, this does not stop other ports from competing for the trade dividend between China and South Korea. Take Qingdao Port as an example. This is the seventh largest international port in the world. The Qingdao Free Trade Port Zone started its operation in 2008. This is also considered the first step in the construction of the pilot zone of the China-Korea Free Trade Zone.
It is understood that at present, Qingdao Port has established good trade relations with South Korea's Busan Port and Gwangyang Port. Last year, the total container volume from Qingdao Port to South Korea increased by 5.8% year-on-year.
Weihai Customs officials stated that the transportation of trade with South Korea is mainly based on containers. Although Weihai's trade with South Korea has its own characteristics, compared with Qingdao Port and Yantai Port, Weihai's total import and export value is incomparable.
In addition, as the second largest port in Shandong Province, Rizhao Port, as the fulcrum of the “One Belt One Road” maritime strategy, is gradually adjusting to a container business, seizing the opportunity of China-South Korea free trade, developing South Korean foreign trade routes, and increasing cross-border transportation throughput.
An official from Weihai Port analyzed to reporters that while serving as the fulcrum of the “Belt and Road” initiative, Rizhao Port would like to combine the “Belt and Road” strategy with the two strategies of China-South Korea free trade. According to Dong Yanling, Dean of the Institute of Regional Economics of Shandong University of Finance and Economics, through cooperation with Rizhao Port, South Korea will also have the opportunity to participate in the "One Belt, One Road" strategy, and both parties can get what they need.
Not only the ports in Shandong Province, but also regions with close economic and trade relations with South Korea, such as Tianjin and Dalian, are also thinking about the fat meat of China-South Korea FTA. However, in the opinion of an industry insider, the inland transportation of Dalian Port can only go to the north, and Korean goods cannot only be shipped to the northeast. Similarly, it is impossible for Chinese goods to be transported to Dalian port by land transportation in a circle.
A port management person analyzed to reporters that in terms of distance, after Rizhao Port is located at Weihai Port and Qingdao Port, companies cannot afford to stay close and seek further distance, and prefer to choose one of Weihai Port and Qingdao Port.
Source: China Maritime Service Network
