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Press Release for June 14, 2018, Media Briefing by the Shanghai Municipal People’s Government

June 15, 2018

       Press Release for June 14, 2018, Media Briefing by the Shanghai Municipal People’s Government

The Information Office of Shanghai Municipality held a press conference today (June 14) during which Xie Feng, director of the local transport commission, gave a brief introduction about Shanghai’s Three-Year (2018-2020) Action Plan to build itself into an international shipping center. Zhang Lin, vice director of the commission, Wu Hongbing, vice director of the Shanghai Maritime Safety Administration, Yan Jun, president of Shanghai International Port (Group) Co, Wang Jijie, vice president of Shanghai Airport Authority, and Zhang Ye, president of Shanghai Shipping Exchange, also joined Xie to take questions from the reporters.

The 13th Five-Year period is of critical importance to the city’s plan to build itself into an international shipping center by 2020. To achieve the target and raise the city’s core competitiveness, the local government has drafted a Three-Year (2018-2020) Action Plan. 

I Current situations

First, further consolidated status as an international shipping hub. In the Chinese mainland, the Port of Shanghai boasts the largest number of container shipping routes, the highest frequency of route operations and the widest network coverage. In 2017, cargo throughput rose 6.9 percent from a year earlier to 751 million tons at the Port of Shanghai while container throughput increased 8.3 percent year on year to 40.23 million TEUs, ranking No.1 in the world for the eighth consecutive year. At the same time, leveraging on the golden waterway along the Yangtze River, the Port of Shanghai is developing its waterway-waterway transport business and proceeding with its renovation project on high-grade inland waterways at a steady pace. Container lines connecting all ports along the Yangtze River are operated on a regular basis and breakthroughs have been made in the two-way navigation for large vessels along the deep-water passage at the mouth of the Yangtze River. In 2017, waterway-waterway transport accounted for 46.7 percent of total container transfer. Among all, 10.58 million TEUs were handled along the Yangtze River, accounting for 56.4 percent of the total waterway-waterway transport and 26.3 percent of total throughput at the Port of Shanghai.

Second, generally established status as an Asian gateway aviation hub. Shanghai has successfully built a “one city, two airports” system, the first of its kind in the country whose scale and layout are compatible with their international counterparts. The city’s two international airports, namely Pudong and Hongqiao, have a total of four terminals, six runways, 1.47 million square meters’ cargo area and an airport bonded zone, with total designed capacity for 100 million passengers and 5.2 million tons of cargoes. About 110 airlines have launched services to the city’s two airports which are now connected to 297 cities worldwide. Transit centers of the three largest logistics companies are all under operation in the international cargo mail and courier service zones at the Pudong airport. In 2017, passenger throughput at Shanghai airports reached 112 million, ranking the fourth around the globe. Cargo mail throughput at Pudong airport maintained its No.3 global ranking for the 10th consecutive year. Throughput of international passengers and cargo mail at Pudong airport accounted for one third and half of the country’s total, respectively, making it the No.1 gateway in the Chinese mainland. 

Third, the function of modern shipping services has been continuously improved. A cluster of shipping service areas such as Waigaoqiao, Yangshan-Lingang, North Bund, Lujiazui Yangshuo, Wusongkou, Hongqiao, and Pudong Airport, among which the shipping industry in Hongkou District ranks first in terms of its contribution to the district’s overall financial income, accounting for 19 percent of Hongkou’s public financial income.

A group of international and national shipping functional organizations have gathered in Shanghai. The world's top 20 liner companies, the top four cruise companies, nine global shipping classification societies, and major state-owned and privately-owned shipping companies have all set up headquarters or branches in Shanghai.

Shanghai Shipping Exchange has become the national container liner freight registration center and the China Ship Information Center. The container freight index has become a benchmark for the global container shipping market. The capability of maritime legal services has been continuously improved. The number of maritime arbitration cases in Shanghai accounts for 90 percent of the country's total number of cases. Shanghai Maritime Court is striving to build an international maritime judicial center.

In terms of shipping insurance, 11 property insurance companies have set up shipping insurance operation centers in Shanghai. In 2017, the premium income of Shanghai shipping and cargo insurance was 3.712 billion yuan, accounting for 25.05 percent of the country's total shipping insurance premium, of which the shipping insurance premium accounted for 44.05 percent of the country's total shipping insurance premium income.

Fourth, the cruise economy has gained a good development momentum. The construction of Shanghai cruise terminal and its supporting facilities has been increasingly optimized, and the “two main and one standby” structure of Wusongkou International Cruise Port + International Passenger Terminal + Waigaoqiao Reserve Terminal has been formed. The number of cruise ships and passengers has grown rapidly.

In 2017, Shanghai Port had a total of 512 cruising cruises and a total of 2,972,900 cruise passengers, making it the world’s fourth largest home port for cruise ships. At the same time, the Wusongkou area is actively developing the cruise industry chain and seeks to build up the economy of the cruise ship headquarters.

Shanghai China Shipbuilding International Cruise Industry Park and more than 40 cruise ship companies set up their headquarters of branches in Baoshan District. The cruise ship supply industry has also achieved relatively rapid development. In 2017, the total value of Wusong's cruise ships’ supply reached 426 million yuan.

II Construction targets

By 2020, Shanghai will have completed the construction of becoming an international shipping center with a high concentration of shipping resources, a sound shipping service function, an excellent shipping market environment, and high-efficiency modern logistics services, and a global shipping resource allocation capability.

The shipping hub’s function will take a leading position internationally. To connect with the national strategy of “Belt and Road Initiative” and “Yangtze River Economic Belt”, a globally influential international shipping operation center characterized by a smart and efficient container hub port, a high quality aviation hub port, and a world-class cruise ship home port will be established.

The annual throughput of containers will exceed 42 million TEUs; the annual throughput of aviation passengers reached 120 million passengers, and the annual throughput of cargo and mail reached 4.4 million tons; cruise ships are expected to receive 3.5 million inbound and outbound tourists.

The level of shipping services will also pick up dramatically. To increase the external radiation capacity and internationalization level of the modern shipping service businesses, Shanghai will become an international shipping service center and gather all the elements of shipping services.

The world’s top 100 shipping companies and international shipping organizations will further increase their presence in the city, and the levels and capabilities of services such as maritime law and arbitration, shipping financing and insurance, maritime education and research and development, shipping consulting and information service will be further enhanced.

The city is going to further enhance innovation capability of shipping industry. Shanghai will deepen the innovation in the shipping industry in order to meet the highest standards of international trade facilitation. The overall port efficiency and business environment is expected to reach the world-leading level. To establish shipping, science and technology as well as innovation highland, the city will achieve transformation and development of shipping industry through the application of new technologies such as the Internet, Internet of Things, big data and intelligence. The development of hub will be matched with urban development, clean energy, energy saving, controlled pollutants and intensive use of land shoreline resources.

III Key Measures

First, to build a world-class air and sea hub, the city will complete the follow-up work of the fourth phase of Yangshan Deep-Water Port and accelerate the construction of the eighth phase of Waigaoqiao port. The city will promote the construction of the third phase of Pudong airport, Hongqiao airport Terminal 1, Pudong airport fifth lane project, overall planning and revision of the master plan for Pudong airport. The government will optimize airspace structure, deepen reform in airspace management and improve normal rate of release of two flights. The city will provide policy support for the opening of international flights, enhance international air cargo and mail transfer functions, promote express delivery, cold chain logistics, cross-border e-commerce and other business sectors. The city will also enhance airport passenger transit services and expand the range of passenger transit visa-free policy. Shanghai will accelerate follow-up project development of Wusongkou International Cruise Terminal. Traffic and port supporting facilities will be optimized. The city will establish a boarding mechanism for passengers entering Hong Kong with tickets.

Second, to optimize and improve the hub transportation system. Shanghai will promote the first phase of Nancao waterway regulation project and operation of trade fair at the Yangtze River estuary. The city will promote direct transportation, strengthen crew training as well as safety supervision. Shanghai will promote the construction of inland waterway such as second phase of the Dalu Line, the railway Nantong to Anting Town section, the railway Taicang to Situan Town section and introduce the railway into Waigaoqiao port area. The city will improve surrounding transportation network of Waigaoqiao port area, build the project of crossing the river in the northern suburbs and build the Lingang container service center. The city will speed ​​up the planning of Pudong integrated transportation hub, accelerate the preliminary work of airport, complete the eastern extension of Metro Line 2 and improve the network around the airport.

Third, to promote the green, safe and efficient development of shipping industry. Shanghai will formulate and implement a new round of three-year action plan for green ports to implement management and control measures for ship emission control zones, accelerate the application of shore power facilities as well as the application of LNG power inland water ships. The city will enhance the usage of non-road motor vehicles in ports. Shanghai will also fully implement a standard which regulates disposal of pollutants in ports and ships. The city has the ability to provide electric power to docked aircraft and support the application of new-energy vehicles at airports. The city will improve single window of international trade, create the demo zone for the Yangtze River estuary, establish a cross-border trade management big data platform and a comprehensive service information platform for Yangtze River, improve the functions of the booking platform, promote the online acceptance of the port business, advance the container equipment transfer orders and electronic bill of lading. Pudong airport and Hongqiao airport will create a self-service terminal, which will have reasonable space distribution and improve the emergency capability under adverse climatic conditions.

Fourth, to improve modern shipping services capacity. Shanghai is to construct a cluster for shipping finance companies, building “a base of headquarters for shipping services companies” in the North Bund to attract more functional branches of shipping companies; Shanghai is to construct Hongqiao Airport Economic Demonstration Zone to promote the agglomeration and trade of aviation resources; Shanghai is to construct Wusong Cruise Terminal Base to enrich commercial cruise business and build up a distribution center for cruises. Shanghai is to set up an international maritime judicial center and to digitalize arbitration information of shipping services. Shanghai is to deepen the reform of registration system of shipping insurance, expanding the function of shipping insurance index and publishing a sheet of loss of pure risks of shipping. Shanghai is to improve the registration and inquiries services for financing leasing. “Shanghai Shipping Index” will become a brand, and the derivatives of shipping finance will be developed. Shanghai will set up think tanks of shipping that have global influence and strengthen coordinated innovation with global counterparts. China (Shanghai) Maritime Museum will be built into a well-known museum in the world.

Fifth,to enhance regional cooperation in shipping and aviation development. The system of coordinated growth in shipping and aviation in the Yangtze River Delta Region will be strengthened to accelerate integrated exploration of the north bank of Xiaoyangshan and to encourage regional cooperation led by leading companies in shipping and aviation. Shanghai is to encourage the establishment of allies among airports and the innovation of cross-city airport management. The Shipping Alliance of Yangtze River Economic Belt will play its function and have a model effect with an improved working mechanism. A cooperation mechanism for shipping and aviation sectors in the 21st Century Maritime Silk Road will be set up, and aviation companies will get support to expand routes in “Belt and Road” countries. Shanghai is to facilitate insurance companies in developing overseas investment policy products. It is to enrich the meaning of “Belt and Road Index for Shipping Trading” and strengthen the application and promotion of the index. Shanghai will partner with countries along the Belt and Road in areas like legal services and training of maritime professionals.

Sixth, to facilitate the construction of a shipping center. Shanghai is to improve the coordination mechanism of building Shanghai into a global shipping center with better communication with related departments of the country. Shanghai is to optimize the overall growth environment for shipping industry and accelerate the reform of approval mechanism in shipping and aviation. Shanghai is to improve the port services, raising logistics efficiency and lowering its costs. Shanghai is to strength the training of professionals of shipping, providing better education and improving the introduction of senior, highly-skilled or urgently-needed talent. Shanghai is also to improve the financial facilitating policies for the city’s construction of a global shipping center.