With Qingdao's increasing strength among international ports, the Shinan district at the heart of the city has risen as shipping center in Northeast Asia.

Despite an overall decline in the global shipping industry, the number of shipping companies operating in Qingdao has grown by more than 400 in the past two years, with many located in Shinan.

By December 2014, the district was home to 3,355 logistics companies, accounting for 80 percent of the city's total.

In the first three quarters of 2014, gross profits in the transportation, warehousing and delivery industries in Shinan totaled 6.86 billion yuan ($1.1 billion), a 12.7 percent increase from the same period of 2013.

The strong growth came after the district government released a development plan in 2013 for the shipping industry and helped initiate the district's first association for shipping enterprises.

By analyzing data in more than 100 categories collected from major shipping companies and agencies in Shinan, the association has released a local shipping industry development index every quarter to help enterprises and the government improve decision-making.

"We will further upgrade the industry by attracting major shipping companies to establish their regional headquarters in Shinan," said Li Ning, deputy head of the Shinan Bureau of Service Industry Development. "Our goal is to become a regional shipping hub."

The Shinan district government has offered a number of preferential policies to facilitate the development of the shipping industry including incentives for head office establishment and talent recruitment, as well improving services for enterprises.

Jiang Heping, general manager of Kerryeas Qingdao, said his company started with fewer than 10 people and now has grown to more than 150. Their growth benefited greatly from preferential policies issued by Shinan, he said.

The government of Shinan has also sought to help complete the shipping industry chain. The sector is now comprised of hundreds of segments including harbor operations, warehousing, shipping agents, freight forwarders, customs clearance, consulting and training for sailors, said Li Ning.

Pang Zongyu, secretary-general of the Shinan Shipping Association, said Qingdao has developed the only ship exchange in North China. The cruise liner sector has also begun to take shape.

He said the cruise liner business is driving growth for a number of sectors in Shinan including transportation, shipbuilding, port services, sightseeing, food and beverages, shopping, banking and insurance.

"With a cruise home port under construction in Shinan, many traditional shipping enterprises have begun to transform themselves toward businesses related to the cruise industry," Pang said.

The district government will also help improve the service sector for the shipping industry with its international ship exchange and a public information service platform.

huqing@chinadaily.com.cn

(China Daily 01/30/2015 page12)