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PORTS<br />
<strong>Taicang</strong> <strong>Port</strong> :<br />
The wing to<br />
Shanghai’s dragon head<br />
<strong>Taicang</strong> International Gateway (TIG) is one of the ports<br />
lending its support to the hub in the Yangtze River<br />
Delta and Shanghai Maritime Centre. "The Ministry of<br />
Transport of the Central Government calls it the 'One<br />
<strong>Port</strong>-Two Wings'," explained Sun Song, head of <strong>Taicang</strong><br />
<strong>Port</strong> Development Service Commission. Song pointed<br />
out that Yangshan port in Shanghai forms the head of the<br />
dragon, and forming the wings are <strong>Taicang</strong> port in the<br />
north and Ningbo port in the south. <strong>Taicang</strong> port has its<br />
own cargo sources and direct shipping services to markets<br />
in Asia and the US.<br />
"Using the <strong>Taicang</strong> port means avoiding congestion in<br />
Shanghai and, if the cargo emanates from the Jiangsu<br />
region, cheaper transport connections by highway or by<br />
feeder to Shanghai," said Mark Weaser, Director-Business<br />
Development, <strong>Modern</strong> <strong>Terminals</strong>. <strong>Taicang</strong> International<br />
Gateway (TIG), a subsidiary of <strong>Modern</strong> <strong>Terminals</strong><br />
2 Shippers Today<br />
by Gina Giron-Urquiola<br />
Limited of Hong Kong, is strategically located near<br />
several key manufacturing China hubs, including Suzhou,<br />
Kunshan, Wuxi and the Yangtze River Delta Region.<br />
<strong>Taicang</strong>'s proximity to the manufacturing point of origin<br />
allows shippers to avoid congestion and reduce haulage<br />
costs by reducing inland transit time.<br />
"The local government fully supports the port with the<br />
development of the highway network and excellent<br />
infrastructure, and even an environmentally friendly barge<br />
service," said Song. In March, phase 3 of the dredging<br />
project of the YRD brought the draft of <strong>Taicang</strong> down to<br />
12.5m, and 11.4m on the north side.<br />
"<strong>Taicang</strong> port easily accommodates 6,800 TEU ships<br />
which ideally serve the intra-Asia trade," pointed out<br />
Fred Castonguay II, Managing Director of TIG. "There's<br />
Shanghai and Yangshan to serve the mega-vessels, the<br />
• Situated at the coastal area of Jiangsu<br />
Province and next to Shanghai with<br />
strong cargo base<br />
• Home gateway of Suzhou City<br />
• Closest International Gateway to Suzhou<br />
– Wuxi – Changzhou (South Jiangsu<br />
"Golden Triangle')<br />
• Connected with comprehensive<br />
highways netwotk<br />
– Nanjing-Shanghai Highway<br />
– Suzhou-Kunshan-<strong>Taicang</strong> Highway<br />
– Yanjiang Highway<br />
– Sutong Bridge
mother ships. From <strong>Taicang</strong>, if there is a need for the<br />
cargo to reach Shanghai, then we have feeders or the road<br />
network."<br />
In April, The Containership Company (TCC), a<br />
Norwegian container shipping company founded in<br />
2009, nominated <strong>Taicang</strong> in Jiangsu, China, and TraPac<br />
Container Terminal in Los Angeles. USA to provide<br />
terminal services for their new "Great Dragon" service,<br />
which entered the transpacific trade on April 17.<br />
"<strong>Taicang</strong> International Gateway, and Jiangsu Government,<br />
together with TraPac and the <strong>Port</strong> of Los Angeles will<br />
provide TCC world class terminal operations on both<br />
sides of the Pacific," said Sean Kelly, CEO of <strong>Modern</strong><br />
<strong>Terminals</strong>.<br />
TCC's inaugural Great Dragon sailing departed from<br />
<strong>Taicang</strong> International Gateway on April 17 with a<br />
scheduled arrival in Los Angeles on May 3rd. The Great<br />
Dragon service is expected to generate 250,000 TEUs<br />
annually between Los Angeles and <strong>Taicang</strong>. This is the<br />
first transpacific sailing from <strong>Taicang</strong>.<br />
PORTS<br />
‘One <strong>Port</strong>-Two Wings’,” explained Sun Song, head<br />
of <strong>Taicang</strong> <strong>Port</strong> Development Service Commission,<br />
in describing the ports of Shanghai, Taichang and<br />
Ningbo.<br />
<strong>Taicang</strong>, which is located at southeast of Jiangsu<br />
Province, bordering the Yangtze River on the east and<br />
connecting Shanghai on the south, covers a land area of<br />
823sq km. <strong>Taicang</strong> administrates Jiangsu <strong>Taicang</strong> <strong>Port</strong><br />
Economic Development Zone (composed of <strong>Port</strong> Zone<br />
and New Zone) and 7 towns.<br />
<strong>Taicang</strong> has a unique natural harbor at Yangtze River<br />
Estuary. Its 38.8 km stretch of Yangtze River Coastline<br />
allows <strong>Taicang</strong> to build up to 100 deepwater berths for<br />
vessels over 10,000 tons. The deep water area of Yangtze<br />
River Shipping Tunnel enables vessels of 50,000 tons to<br />
call at <strong>Taicang</strong> port. The costal line is suitable to build<br />
berths for the 4th and 5th generation container ships.<br />
"The <strong>Taicang</strong> port offers sustainable value to carriers, with<br />
a clear price advantage," said Castonguay. "Operating<br />
costs are lower than Shanghai. <strong>Taicang</strong> port also generates<br />
potentially 50% inland savings over Shanghai from<br />
reducing transportation costs."<br />
<strong>Taicang</strong> <strong>Port</strong> Development Zone has the advantage of<br />
strategic location, east to the Yangtze River, south to<br />
Shippers Today<br />
3
PORTS<br />
Shanghai, and west to Suzhou, Wuxi and Changshu<br />
areas. <strong>Taicang</strong> <strong>Port</strong> is about 24 and 42 nautical miles to<br />
Shanghai's Wusong Mouth and the Yangtze River estuary.<br />
It is about 50km to Shanghai city, Hongqiao International<br />
Airport, Pudong New Area and Suzhou Industrial Park<br />
and 70 km to Pudong Airport.<br />
<strong>Taicang</strong> has a convenient transportation network: there<br />
are Shanghai-Nanjing highway, Shanghai-Jiading<br />
Highway, State Coastal Highway, Suzhou-Kunshan-<br />
<strong>Taicang</strong> Highway, 204 State Highway, 312 State Highway,<br />
Shanghai-<strong>Taicang</strong> Highway, Wuxi-<strong>Taicang</strong> Highway,<br />
Shanghai-Nanjing Railway and the Planned Coastal<br />
Railway; three regional rivers pass through <strong>Taicang</strong> <strong>Port</strong>,<br />
joining Yangtze River and Beijing-Hangzhou Grand<br />
Cannel, forming a convenient inland river grid.<br />
"<strong>Taicang</strong> <strong>Port</strong> has constructed 32 berths, and opened up to<br />
64 domestic & International shipping lines, specializing in<br />
near-ocean foreign trade container transportation. In 2007,<br />
the handling capacity of <strong>Taicang</strong> port exceeded 1 million<br />
TEU, while its throughput exceeded 30 million tons," said<br />
Castonguay.<br />
<strong>Taicang</strong> <strong>Port</strong> Bonded Logistics Center and Joint<br />
Inspection & Service Building are 1 km to the container<br />
berths. The Bonded Logistics Center has all necessary<br />
functions. One-stop services of the Joint Inspection &<br />
Service Building provide enterprises with fast customs<br />
clearance services.<br />
TIG is the first port to be fully equipped with electrical<br />
RTG yard cranes, running off the electrical power grid<br />
and thus reducing carbon emissions by eliminating the use<br />
of diesel.<br />
<strong>Modern</strong> <strong>Terminals</strong> manage and operate <strong>Taicang</strong> port<br />
phases 1 and 2, with a 70% shareholding and 30% for the<br />
Suzhou Government. Phase 1 consists of two container<br />
berths and two breakbulk berths, a draft of -12.5m and<br />
930m quay length. There is a 129 hectares yard area with<br />
12,000sqm of warehousing space. Phase 1 is equipped<br />
with 4 QC and 10 RTG, and has a capacity of 600,000<br />
TEU.<br />
Phase 2 has four container berths, 1,100m quay length<br />
with the same -12.5m draft, 141 hectares of yard space<br />
and 13 QC plus 39 RTG, with a total capacity of over 3<br />
million TEU.<br />
Phase 3, meanwhile, will be operational at the end of this<br />
4 Shippers Today<br />
year and has a design capacity of 2 million TEU. There<br />
are no foreign investors as of yet in Phase 3 and <strong>Modern</strong><br />
<strong>Terminals</strong> indicated that it is in negotiations with the<br />
Suzhou Government.<br />
"With the migration of light industrial manufacturing<br />
out of Shanghai with the land becoming more expensive<br />
and more congested, there was migration to <strong>Taicang</strong><br />
which is within 50 to 100 km radius of the manufacturing<br />
region in south Jiangsu," said Weaser. "<strong>Taicang</strong> is close<br />
to the source of cargo and this translates into savings on<br />
operations as well as trucking costs.<br />
(From left) Sun Song, head of <strong>Taicang</strong> <strong>Port</strong> Development Service<br />
Commission; Mark Weaser, Director-Business Dev, <strong>Modern</strong> <strong>Terminals</strong>;<br />
Fred Castonguay II, MD, TIG; Jessica Qi, Communications Mgr, TIG.<br />
"We saw the development of the <strong>Taicang</strong> port as a<br />
natural evolution in line with the region's development.<br />
<strong>Taicang</strong> port offers direct services to markets in the US<br />
and intra-Asia."<br />
Weaser said the decision to invest in <strong>Taicang</strong> included<br />
offering customers better services outside of Shanghai<br />
where congestion and high costs were driving industry<br />
out; <strong>Taicang</strong> has the full support of the Suzhou<br />
government in developing the port and the supporting<br />
infrastructure; <strong>Modern</strong> <strong>Terminals</strong> can offer its customers<br />
an additional choice that is closer to the source and outlets<br />
of manufacturing.<br />
"We listen to everyone in the supply chain," said<br />
Weaser. "To the shipping lines and to the people that<br />
own the goods. We see in <strong>Taicang</strong> a capacity to develop<br />
continuously in coming years to accommodate the rapid<br />
growth and expansion in the region."