Northern Chinese ports to boost coal handling capacity
Main ports in northern China are mulling to further boost their coal handling capacities by accelerating construction and upgrading of relevant facilities over the next five years, exerting certain impacts to coal imports in the south, Sxcoal reports.
By 2017, total coal handling capacity at Qinhuangdao, Huanghua, Tianjin and Caofeidian ports are estimated to be doubled to 900 million tonnes, which would play a more important role in insuring coal consumption for coastal regions and trigger more competition among ports as well.
Qinhuangdao, China's top coal transferring port, is considering the construction of new coal docks to replace the old ones that are going to be shut for environmental concerns next year and those that would be used to handle containers in a few years. The total handling capacity of the new docks would be approximately 50 million tonnes per annum.
The handling capacity of Huanghua port, another major northern port, has reached 100 million tonnes per annum thanks to a 13 million tonnes level expansion project which was put into operation in early 2011. Besides, the third phase project with loading capacity of 50 million tonnes per annum has been completed and is expected to be put into operation early next year. Total handling capacity of the port is estimated to hit 150 million tonnes per annum by then. Tianjin port plays an important role in shipping coal from major miners, such as Shenhua and China coal Energy.
Presently, China coal energy has four large coal berths at the port with designed throughput of 43 million tonnes per annum in total, while Shenhua owns docks with designed delivery capacity of 45 million tonnes per annum. Additionally, Shenhua plans to construct the second phase project with a designed capacity of 35 million tonnes and is expected to be put into operation in 2013. By then, total handling capacity at Tianjin port is estimated to exceed 100 million tonnes per annum.
Caofeidian port, another key port for coal hauled by Daqin Line, is anticipated to have a designed capacity of 100 million tonnes per annum after the formal operation of the extension project (5 berths, 50 million tonnes per annum) to the Phase I Project. Moreover, a few other dock projects are under construction, which will eventually raise the port's handling capacity to 350 million tonnes per annum. In the next one or two years, China's coal market is unlikely to see a fundamental improvement in its major downstream sectors (e.g. power and steel), as the central government has given priority to stabilizing the economic growth. Given the expected surplus of handling capacity at northern China ports and moderate demand increase, northern ports would have to compete with each other to secure southern clients. Overseas producers targeting the southern China market will need to watch out the actual progress of the projects mentioned above and their potential impacts to the China coastal market.