On December 8, 2010, the “High-level Roundtable Forum on Port Development 2010 – Future Strategic Transformation of Port Development” jointly organized by Shanghai Maritime University and World Maritime University, and operated by Shanghai International Shipping Institute (SISI)was successfully held in Shanghai Gran Melia Hotel.

On December 7, the organizers held a grand welcoming dinner. Director Xiong Wei of Port Management Office of the Department of Water Transport under the Ministry of Transport addressed the Forum on behalf of Deputy Director-General Zhi Guanglu. He said that the convening of the Forum provides a reference for China’s ports to establish the 12th Five-Year plans. On behalf of the organizers, Professor Ma Shuo, Vice President of World Maritime University, and Professor Yu Shicheng, Party Committee Secretary and Vice President of Shanghai Maritime University, delivered respective speeches, expressing warm welcome to the representatives of the Forum.

Themed “Future Strategic Transformation of Port Development”, the Forum adopted open roundtable discussion, on “cross-regional port development strategies”, “outlook for port operation and management”, and “port business development practice”. Deputy Director-General Zhi Guanglu of the Department of Water Transport u Ministry of Transport, Party Secretary and President Yu Shicheng of Shanghai Maritime University, and Vice President Ma Shuo of World Maritime University addressed the opening ceremony.

At the “High-level Roundtable Forum on Port Development 2010”

Zhi Guanglu, Deputy Director-General of the Department of Water Transport under the Ministry of Transport, made an opening speech

Professor Yu Shicheng, Party Committee Secretary and President of Shanghai Maritime University, delivered an opening speech

Professor Ma Shuo, Vice President of World Maritime University, made an opening speech

The Forum gathered together nearly 80 senior leaders and experts from domestic and foreign port-related governmental departments, industries and academia. Participants present at the Forum included governmental leaders from the Department of Water Transport under the Ministry of Transport, Commission Office of Shanghai Combination Port, Shanghai Municipal Transport and Port Authority, Shanghai Urban Construction and Communications Commission, and other port & shipping administrations; as well as leaders from the industries, such as ports of Shanghai, Tianjin, Ningbo, Nanjing, Lianyungang, Rizhao, Yingkou, Xiamen, Yantian, Huzhou, Maanshan, Jiaxing and Taicang etc., COSCO Pacific, and China Shipping Terminal Development Co., Ltd. The Forum was further attended by experts and scholars from the Institute of Comprehensive Transportation of NDRC, China Academy of Transportation Sciences, China Ports and Harbours Association, Shanghai Maritime University, World Maritime University, Wuhan University of Technology, SISI and other institutions. The Forum also attracted the attention from relevant foreign ports and agencies, such as the Port Authority of New York & New Jersey Shanghai Office, Eurogate Shanghai Representative Office, Netherlands Consulate General in Shanghai, Italy La Spezia Port Authority, and Korea Maritime Institute etc. with their leaders and experts also participating in the discussion and exchanges at the Forum.

Bao Qifan, Vice President of Shanghai International Port (Group) Co., Ltd., put forward the concept of “innovation guides transformation”, requiring terminals to transform from traditional handling to modern service industry. He said that new types of business shall only be created under new modes of economic development. Firstly, to transform from isolated loading and unloading to providing major customers with seamless logistics, which is conducive to resource conservation, environmental friendliness and energy saving. Secondly, to achieve “perception” instead of “notification” for shippers based on the Internet of Things, and increase the logistics transparency. Thirdly, to achieve distribution, inspection and other value-added services related to port and logistics. Fourthly, to provide extended logistics services, so as to enable the terminals to actually function at an earlier stage, e.g. the construction of dry ports.

President Xu Minjie of COSCO Pacific presented his views on future port transformation in three aspects. First is the basis for the future port development and transformation. On the one hand, based on the general overcapacity of global port industry, an average growth of approximately 20% in Chinese port throughput cannot be sustained for a long time. On the other hand, the global trade has shown a recessionary decline during the later period, gradually entering into smoother and slower development. Second, the whole terminal industry has experienced two stages of development and is gradually moving to the third phase. The first stage began from the early 1990s when capital and management technology were taken as the main advantages, and was represented by PSA Singapore and Hong Kong Hutchison Whampoa. The second stage featured terminal operators supported by container fleets in the mid 1990s, e.g. Maersk and COSCO. The third stage has not yet approached but already shown clues, where terminal operators will focus on the two-way integrated development, featuring the two-way operation of capital and assets of the terminal industry. Third, the core competence of terminal suppliers lies in the system integration of port logistics supply chain.

Zhu Jianhua, Deputy Director-General of Shanghai Municipal Transport and Port Authority, put forward views based on the harmonious development of governments and enterprises as well as the innovation and reform of the administrative systems of governments. In his opinion, the key to a harmonious development of governments and enterprises lies in correct orientation and thinking what the other thinks. Governments shall encourage enterprises to make decisions over their own operations rather than intervening in their business activities. The future directions for the reform of governments lie in two aspects. They need to guide the orientations for industrial development so as to meet the needs of both the national economic development and the local urban development. Meanwhile, governments shall establish effective and transparent mechanisms.

Director Luo Ping of the Institute of Comprehensive Transportation of NDRC held that the future port development will expect changes in the following aspects. Firstly, the port collection, distribution and transport system shall adapt to the development of logistics, taking into consideration the connection between ports and urban comprehensive transport, and the connection between ports and the larger hinterland channels. Secondly, adapt to the development based on domestic demand and the industries transferring to central and western regions. Thirdly, adapt to the needs of the economic transformation. Ms. Luo Ping pointed out that the inland ports will usher in two opportunities for development, namely, the transfer of industries to inland areas, and the transfer of inland ports from old towns to new urban areas.

Xu Ping, Deputy Chief Engineer of China Academy of Transportation Sciences, stated that the industry shall develop in eight aspects during the 12th Five-Year period: differential development; guiding public terminals to provide public port services; the establishment of port-based comprehensive transport system such as sea-rail transport and inland shipping; the promotion of inter-regional and intra-regional port cooperation; the strengthening of the construction of coal, oil, ore and other specialized transport systems; the construction of information platform and technology such as e-government and e-commerce; sustainable development such as shore power development and energy conservation & emission reduction; and capital policy.

At the closing ceremony, Deputy Director-General Zhi Guanglu of the Department of Water Transport under the Ministry of Transport, Director Xiong Wei of Port Management Office, and Professor and Vice President Ma Shuo of World Maritime University delivered concluding speeches respectively. Mr. Xiong Wei said that, among China’s coastal ports, 43 ports have conducted different degrees of trans-regional cooperation, most of which are intra-provincial, while few are inter-provincial. The difficulties of inter-regional cooperation lie in three aspects: the problem of government guidance and market cooperation; the approaches to removing the limitations of administrative divisions and integrating port resources; the weakening of the throughput expansion and the strengthening of quality. According to Mr. Xiong Wei, the strategies for future port development are to develop China’s own brands of port enterprises and to regulate the price competition among ports.

Mr. Zhi Guanglu believed that it is of great significance for the Forum to gather together leaders and experts related to the port industry to discuss the future development of ports. He said that Ministry of Transport is very concerned about the future development of ports. The examples and practices introduced by speakers at the Forum are worthy of thinking over. In the future, the Ministry of Transport will further discuss with local governmental departments and port enterprises on ways to build a policy environment and maintain the market order etc., jointly promoting the future prosperity of China’s ports.
The Forum provided an extensive exchange platform for relevant governmental departments and industry experts and scholars. During the process and break of the Forum, guests conducted lively and in-depth discussions on various aspects of port development. The forum received positive comments and was rounded off amidst warm applause.