At the beginning of this month, a report published by 21 Chinese ports reflected a radical increase in profit. The Ministry of Transport statistics revealed a throughput increase of 7.5 percent for all Chinese ports in H1 2017, a whopping 6.427 billion tons.
The country’s foreign trade economy recorded a growth of 20% when compared with the same period last year. This positively impacted all port operations, especially coal imports which recorded a double digit increase. Additionally, there was a steep increase in container handlings.
According to UBS analyst, Xu Bin, the eye catching trends are the mergers, acquisitions and consolidations of the ports and terminals, which are already happening in Jiang Su Province (close to Shanghai) and LiaoNing Province (Dalian, Yingkou, Jinzhou, etc). Further this consolidation would strengthen the bargaining power to negotiate charges and fees with shipping companies. Xu Bin further predicts more to come.
Business innovation is another factor that has contributed to the increase in profits. Several ports have made significant changes to allow for greater business opportunities.
Port of Jinzhou developed a Non-Water Inland terminal to provide a one stop service to its container customers. Additionally, the sea-rail multi model transport makes the business more attractive. Port of Nanjing has included container business. While Port of Tianjin saw a decline in profit by 13.48 percent due to stricter implementation, or restriction of dangerous cargo handling, Port of QingHuangDao, the major coal export exit of China, gained from this new policy with a record 3.5 times jump in profits as it has better rail connections with the mining areas.