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Taicang Port : - Modern Terminals

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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."

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