THE Port of Shanghai, the world's biggest container port, has announced it will cooperate with the Port of Ningbo, the world's largest port by cargo turnover, in the development, operation and management of the northern part of Xiao Yangshan port area.
According to the agreement, Shanghai International Port Group (SIPG) and Zhejiang Seaport Investment & Operation Group will invest CNY5 billion (US$744.5 million) in Shanghai Shengdong International Container Terminals, a wholly-owned subsidiary of SIPG.
Following the investment, SIPG will hold 80 per cent of the joint venture with Zhejiang Seaport Group retaining the remaining 20 per cent.
Up to 70 per cent of Shanghai port's throughput comes from the Yangtze River Delta region, and nearly half of the goods in Yangshan require additional transportation by water, reported the China Daily.
In the operational southern side of Yangshan port, no berths are set aside for feeder vessels, which has hampered its efficiency and economic performance, said Liu Ming, a deputy general manager with a logistics company under SIPG.
"Feeder ships for regional transportation have to wait for a berth to reach their destinations, which is a waste of time and money," said Zhou Dequan, a research director from the Shanghai International Shipping Institute.
The northern side of Xiao Yangshan, though not as deep as the southern side, could well be developed into an international transportation hub for transition between rivers across the region, said Fang Huaijin, vice-president of Shanghai International Port Group.
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