China container shipping industry annual growth seen at 10 pct
China's containerized shipping industry is expected to achieve an annual growth rate of 10 pct over the next five years as the country's economy continues to drive the world's shipping market
DALIAN, China (AFX) - China's containerized shipping industry is expected to achieve an annual growth rate of 10 pct over the next five years as the country's economy continues to drive the world's shipping market, a senior research fellow from Singapore's East Asian Institute said.
Speaking at a shipping conference in China's northeastern port city of Dalian, Yang Mu said that China's containerized shipping market will continue to expand at the rapid rate which saw volumes in 2005 reach 75 mln twenty-foot equivalent units (TEUs) up from five mln TEUs in 1995.
'China's containerized shipping has improved a lot... it is expected to reach (an annual) growth of around 10 pct (in the next five years),' Yang said.
'This is a conservative estimate, considering that big ports like Shanghai are growing at an even faster rate,' he told XFN-Asia on the sidelines of the conference.
The freight volume of containers at Shanghai Port reached 18 mln TEUs in 2005, some 39 times higher than in 1990 when volume was 460,000 TEUs, Yang said.
He added that the potential negative effect of an overheating economy on China's containerized shipping market may also be overstated and that the industry will experience high demand over the 10 years as China invests more in high valued added industries such as automobiles and telecoms for export.
Imports of more energy-related products and raw materials will underpin the sector as well as free trade agreements, Yang said.
'China has become a haven for world shipping companies. The country's accession to the WTO has had a positive impact on the Chinese economy and its ports and shipping sector have added impetus to world shipping,' he said.
Yang added the completion of Yangshan deep water port, which is connected to river ports like Wuhan and Chongqing, will boost development along the Yangtze River and ultimately increase supply for international shipping.
Speaking at a shipping conference in China's northeastern port city of Dalian, Yang Mu said that China's containerized shipping market will continue to expand at the rapid rate which saw volumes in 2005 reach 75 mln twenty-foot equivalent units (TEUs) up from five mln TEUs in 1995.
'China's containerized shipping has improved a lot... it is expected to reach (an annual) growth of around 10 pct (in the next five years),' Yang said.
'This is a conservative estimate, considering that big ports like Shanghai are growing at an even faster rate,' he told XFN-Asia on the sidelines of the conference.
The freight volume of containers at Shanghai Port reached 18 mln TEUs in 2005, some 39 times higher than in 1990 when volume was 460,000 TEUs, Yang said.
He added that the potential negative effect of an overheating economy on China's containerized shipping market may also be overstated and that the industry will experience high demand over the 10 years as China invests more in high valued added industries such as automobiles and telecoms for export.
Imports of more energy-related products and raw materials will underpin the sector as well as free trade agreements, Yang said.
'China has become a haven for world shipping companies. The country's accession to the WTO has had a positive impact on the Chinese economy and its ports and shipping sector have added impetus to world shipping,' he said.
Yang added the completion of Yangshan deep water port, which is connected to river ports like Wuhan and Chongqing, will boost development along the Yangtze River and ultimately increase supply for international shipping.
