Dongjiakou in southern Qingdao plans to become a national shipping hub for bulk cargo and energy. Provided To China Daily

Reinforcing Qingdao's position as a national distribution center, three large berths are expected to open at Dongjiakou Port by the end of 2010, two years ahead of schedule.

One is an ultra-large ore berth, while the others are 50,000-ton general-purpose facilities.

They are just a small fraction of the port's planned 112 berths capable of handling 10,000-ton ships or much larger.

At build out, Dongjiakou is projected to have the capacity to handle a yearly throughput of 370 million tons in bulk materials and cargo.

The natural conditions in the south of Qingdao are well suited to the Dongjiakou deep-water port with year-round, ice-free shipping routes and an average water depth of 15 meters near the coast.

Part of Qingdao Port, the Dongjiakou area aims to be a shipping and storage center of bulk cargo and energy.

Its development is expected to help Qingdao Port rank at the forefront globally in capacity for ore, crude oil and containers and make Shandong a shipping hub for northeast Asia, according to local authorities.

Plans for the 70 square kilometer Dongjiakou Port were approved by the Ministry of Transport and Shandong provincial government in March 2009.

By the end of October this year, investment in the port surpassed 10 billion yuan ($1.5 billion). Projects with up to 30 billion yuan in total investment have now signed with the area.

Among them is a 9.7 billion yuan liquefied natural gas (LNG) facility by China Petroleum and Chemical Corp - more widely known as Sinopec - that started construction in September after gaining approval of the National Development and Reform Commission.

It will become the first LNG loading site in the province when complete.

At the same time Qingdao Port Group has poured 4 billion yuan in building three ultra-large ore berths, the largest in the country.

At least one is expected to begin operation in late December.

China Huaneng Group, one of the largest power generation companies in the country, invested 1.1 billion yuan in coal and general-purpose berths, two of which will be open for trial operation at the end of this year.

Another coal berth will be built by China Datang Corp, also a leading Chinese power generation company.

With a price tag of 1.6 billion yuan, the project is scheduled to begin construction in the second half of next year.

In addition to domestic giants, foreign companies are also interested in new facilities at the port.

Switzerland's Mercuria Energy Group, one of the world's largest energy trading companies, is in negotiations to build a large crude oil berth and 5-million-ton capacity storage yard at the port.

Plans by Singapore-headquartered IMC Group's plans for a 4 billion yuan ore berth are in the approval process.

Local authorities have also signed preliminary agreements with Hong Kong's Modern Terminal Ltd and Hutchison Whampoa Ltd for container facilities.

Vice-Minister of Transport Xu Zuyuan said at a port development meeting in May that developing a low-carbon port is key to sustainable growth in China's transport industry.

The Dongjiakou Port under construction has used an environmentally friendly philosophy from planning to construction and development, local officials said.

Authorities said they will make full use of the latest technologies and renewable energy while exploring innovative ways to reduce energy consumption and improve water treatment.

Main roads in the area have solar-powered lights while green coverage has expanded.

Authorities said they insist on stringent environmental requirements and pollution control when selecting projects.

Long-term goals

Dongjiakou is not just about shipping, according to the area's development blueprint.

Related services like logistics, commerce and the information sector are also flourishing.

Local officials say they are preparing to develop a bonded zone for ore, coal and crude oil with the ultimate goal of building a free-trade port city.

With favorable policies for storage, distribution and trade in bulk cargo, Dongjiakou is expected to attract suppliers from around the globe.

The authorities are planning to launch a Dongjiakou Index for dry and bulk cargo to increase China's influence in the international market.

In addition to harbor industries, residential communities and other facilities are included in the area's development plan.

The city government is now hoping the port's development will be included in the nation's overall economic development plan for the next five years and is seeking strategic investment partners around the world.

Master plan of the port area. Provided To China Daily

(China Daily 12/09/2010 page13)