Sime Darby Berhad, Malaysia’s biggest conglomerate, announced major plans
to expand its port operations in Weifang, China, to take advantage of growing demand
for transport and shipping in the world’s second largest economy.
This involves investing some RMB2.8 billion (RM1.4 billion) over the next three
years to expand its port operations in Weifang. Weifang is located in the Shandong
Province, which is the third biggest province in China in terms of economic size.
A further RMB700 million (RM350 million) investment is being considered depending
on economic factors.
Weifang Sime Darby Port’s five-year development plan involves raising its
capacity to handle over 50 million metric tonnes (MT) of cargo per annum by 2017.
Today, Weifang Port is handling around 18 million metric tonnes of cargo. At the
end of five years, the total number of berths at the port is envisaged to be nearly
double of what is available today.
Weifang Sime Darby Port is strategically located in the prime region of Bohai Sea’s
economic belt. It is 50km away from Weifang City, a prefecture-level city in central
Shandong Province. It is also just 67 nautical miles to Longkou Port and 139 nautical
miles to Tianjin New Port – the largest port in Northern China. This makes
Weifang Sime Darby Port to be one of the preferred feeder services for shippers
within the greater Weifang and neighbouring industrial hinterlands.
Weifang Sime Darby Port currently has berths stretching 2,375 metres in length.
12 berths are fully operational and three new 20,000 MT berths are now under construction
and will be ready by 2013. The port handles more than 30 different types of cargo
like raw salt, grain, coal, petroleum and liquid products.
Sime Darby Expands China’s Weifang Port
Sime Darby Energy & Utilities (ENU) in Shandong
About Bohai Bay
The Catalyst for future growth of North China
- It is a region of great economic activity and home to a number of leading ports
- Three of its ports i.e. Qinhuangdao Port, Tianjin Port and Qingdao Port are among
the top 10 ports in the world
- Top-3 Bohai Bay ports account for 1/4th of the world’s top -10
ports by throughput, totaling around 940 million tons
Proximity to Hinterland is Vital
- Present sustainable long-term competitive advantage to ports like Yingkou, Qinhuangdao,
Tianjin and Weifang
- Close to their hinterlands
- Costs advantage to the shippers
- Hinterland growth leaders – Shandong & Beijing
- Improvements in WSDP’s infrastructure capabilities will surely result in larger
amount of cargo to be distributed by the port
About Bohai Rim – The Emerging Northern Economic Powerhouse
The Bohai Rim Economic Circle is becoming more of a priority for China’s economic
development after the earlier focus on Pearl River Delta and Yangtze River Delta
About Weifang Sime Darby Port (Weifang Port)
Weifang Port lies within the prime region of the Bohai Sea’s economic belt,
one of the busiest seaways in the world. Its prime location makes it an excellent
gateway and a natural choice for cargoes from Central, Northern and Western Shandong
and Weifang city. Weifang Port has established strong domestic shipping routes with
neighbouring cities along the coastal areas, Yangtze River and inland rivers. International
shipping routes include Russia, Japan, South and North Korea and other nearby countries.
Since incorporation of WSDP in 2005, Weifang Port has seen an increase in its customer
portfolio from 70 companies to over 400 companies. Today, the port has become a
pivotal logistical transition point for over 30 different types of cargoes, catering
to various sectors and industries in China, namely chemical, energy, agriculture,
paper products, construction materials, engineering and other manufacturing industries.
The port currently has a berth length of 2,375 metres, with 12 operational berths
and 3 berths under construction. Weifang Port recorded a revenue of RMB178.5 million
(RM83.2 million) for FY2011. In the last five years alone, Sime Darby has invested
RMB1.4 billion (RM698.3 million) in Weifang Port as part of its long term dedication
to the business and the region.
Weifang Port Expansion Plan
The Five Year Expansion plans to accelerate growth of Weifang Port include the construction
- 3 x 20,000 MT general cargo berths. The berths are currently under construction
and are expected to be fully operational by 2013. Total port capacity will increase
to 30.0 million MT per annum
- 3 x 30,000 MT container berths (fully operational by 2018)
- 3 x 30,000 MT general cargo berths (fully operational by 2018)
- 2 x 50,000 MT liquid berths are also in the pipeline (fully operational by 2018)
- 2 x 20,000 MT passenger/roll-on roll-off berths (fully operational by 2018)
The strategic development plan for WSDP includes the construction of a railway track
and more access roads along both eastern and western seaboards.
- Improve capacity by 150% in 3 years from the current capacity of 20 million MT to
more than 50 million MT
- Improve road & rail infrastructures will increase accessibility and make WSDP
a far more attractive proposition if compared to other north-eastern ports
Weifang Port 5-Year Masterplan
Mandarin version with English subtitles
Sime Darby Cementing Its Presence in Shandong, China on 14th June
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