Shanghai, China's busiest container port, aims to make greater use of the Yangtze River for inland shipments as rising congestion and environmental concerns make road transportation less attractive.
Sea change: Shanghai port's effort to move more inland freight by river or sea may help China to cut pollution
'Our top priority is to expand all-water transhipments to cut costs and improve efficiency,' Lu Haihu, chairman of Shanghai International Port (Group) Co, said here on Tuesday. 'This will also help offset the impact from higher costs and a stronger yuan.'
Moving more freight by river or sea may help China cut the pollution generated by its surging economic growth. The lower cost could also help offset the 9.5 per cent appreciation in the yuan over the past year, which makes its exports less competitive overseas.
Waterways are 'cheaper and more reliable than road transport', said Fu Yuning, chairman of China Merchants Holdings (International) Co. 'Given time, this will bring out fundamental changes in Chinese ports' competitiveness with counterparts like Singapore and Hong Kong.'
Shanghai aims to move 30 per cent of domestic cargo via the Yangtze, China's longest river, and 10 per cent via the ocean, said Mr Fu, without providing a timeframe. China Merchants owns 27 per cent of the port's operator.
Less than 10 per cent of China's domestic cargo loads move by waterways, compared with about 50 per cent in Europe, according to Mr Fu. About half of loads from Hong Kong to the mainland are also moved by ship, he added.
Sea change: Shanghai port's effort to move more inland freight by river or sea may help China to cut pollution
'Our top priority is to expand all-water transhipments to cut costs and improve efficiency,' Lu Haihu, chairman of Shanghai International Port (Group) Co, said here on Tuesday. 'This will also help offset the impact from higher costs and a stronger yuan.'
Moving more freight by river or sea may help China cut the pollution generated by its surging economic growth. The lower cost could also help offset the 9.5 per cent appreciation in the yuan over the past year, which makes its exports less competitive overseas.
Waterways are 'cheaper and more reliable than road transport', said Fu Yuning, chairman of China Merchants Holdings (International) Co. 'Given time, this will bring out fundamental changes in Chinese ports' competitiveness with counterparts like Singapore and Hong Kong.'
Shanghai aims to move 30 per cent of domestic cargo via the Yangtze, China's longest river, and 10 per cent via the ocean, said Mr Fu, without providing a timeframe. China Merchants owns 27 per cent of the port's operator.
Less than 10 per cent of China's domestic cargo loads move by waterways, compared with about 50 per cent in Europe, according to Mr Fu. About half of loads from Hong Kong to the mainland are also moved by ship, he added.