NYK Invests in Shanghai Port Container Terminals
December 27, 2007
NYK expects to be admitted as an investor in Phase 3B of Da Xiao Yang Shan Container Terminals [i], now being developed under the auspices of Shanghai International Port (Group) Co., Ltd (SIPG) [ii].
Koji Miyahara, president of NYK, visited Han Zhen, mayor of Shanghai, on December 24. At their meeting, Mayor Han stressed that Shanghai is aiming to become a key international shipping and logistics center and will aggressively develop its centralized shipping and air-cargo logistics facilities.
President Miyahara mentioned that NYK's container-handling volume in Shanghai has grown 50% over the last three years and that the company would continue to promote its business in Shanghai as a key strategic market.
NYK first started weekly container vessel service in Shanghai in 1994, then launched North American West Coast service operated as Grand Alliance in 1996. The company presently has 22 weekly services connecting Shanghai with various destinations around the world. Its handling volume in Shanghai this year is estimated at over 500,000 TEUs.
In addition to its investment in Phase 3B of the Da Xiao Yang Shan project, NYK has announced its investment in Phase 3 of Da Yao Wan Container Terminals in Dalian [iii]. The company's investments in these projects will strengthen its bases for container transportation and respond effectively to the growing needs for high-quality logistics solutions in Northern and Eastern China.
NYK has separately invested in China's RORO (roll on, roll off) terminal businesses in Shanghai, Dalian, and Tianjin [iv]. Future expansion of these RORO logistics facilities is on the agenda, responding to demand in the rapidly-growing markets of Shanghai and Tianjin.
With this series of investments in vessels, containers, and RORO terminals, NYK intends to bolster its position as a highly competitive "integrated logistics service provider."
Notes- A national project, according to the 10th five-year plan drawn up by the central government. It is located in the Da Xiao Yan Shan islands, 34 km southwest of the edge of Shanghai. The project will reportedly create 52 new container berths with a 25-million-TEU handling capacity by 2020, so that the total container-handling capacity will rise to 35 million TEUs.
- AShanghai International Port (Group) Co., Ltd. (SIPG), was established in January 2003, separate from Shanghai Port Authority according to its charter.
- AA joint venture with Dalian Port Container Co., Ltd., and China Shipping Group. NYK has a 20% share. The joint venture is named Dalian International Container Terminal Co., Ltd., and will start operating in April 2008.
- AThese are as follows. Shanghai Haitong International Automotive Terminal Co., Ltd., was established as a joint venture with SIPG and Shanghai Automotive Industry Corporation (Group) in November 2003. Dalian Automobile Terminal Co., Ltd., was set up as a joint venture with Dalian Port Corporation Limited (PDA) and COSCO Group in January 2004; it started operating in July 2006. Tianjin Port Ro-Ro Terminal Co., Ltd., was set up as a joint venture with Tianjin Port (Group) Co., Ltd., in November 2004; it began operations in May 2005.