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Fifth Generation Port  

2017-02-26 22:57:32|  分类: 陆港研究 |  标签: |举报 |字号 订阅

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Child-Mother Port by Joint Operation and Cooperation

 

Authors: Xi Ping  

Translator: Zhang Ying

 

Abstract: The purpose of putting forward the fifth generation port is assisting large harbors to figure out an expanding idea for the future. The fifth generation port—child-mother port by joint operation and cooperation is taking big harbors as the mother port (transshipment port) and the international ports, feeder ports and inland ports as the child-ports to form a group of child-mother ports that mother port and child-ports are coexistence and co-prosperity, joint-venturing and cooperative development. It expands harbor business in the indirect economic hinterland and direct economic hinterland in reticulate form to provide harbor services for inland and propel inland cities to build international land port and develop port-surrounding business regions, then to drive the nice development of export-oriented economy in inland areas. The idea is: expanding chain operation in ports, directly servicing for foreign-trading enterprise, enlarging inland market for international trades and broaden the development space in ports. The behaviors are: building inland ports and branch offices in the vast outback, exploiting “chain stores” in ports, making the port business stretch into the import and export enterprises in land and establishing a close connection between harbors and enterprises.

 

Key words: fifth generation port / child-mother port by joint operation and cooperation / harbor / feeder harbor / inland harbor / chain stores in port / direct economic hinterland / indirect economic hinterland

 

 

1. The division from the first to fourth generation port and the birth background  of fifth generation port

1.1. The division from the first to fourth generation port

In 1992, the secretariat of the UNCTAD published a passage named The Challenges for the Port Service Sales and Third Generation Port, in which the development of port was divided into three phases: first generation port as transportation junction, second generation port as loading and unloading and services, the third generation port as the trading and logistics center.

 

In 1999, there was an article named The Fourth Generation Port published in the 19th Port Communication, which was issued by the UNCTAD. The writer thought that after 1990, the fourth generation port, which was superior to third generation port, had existed around the world. The main views in the article were: fourth generation port mainly disposed of containers, its developing strategies were port-waterway alliance and port-port alliance, its production feature was integrated logistics, the key points for its failure or success were soft factors such as decision-making, management, promotion and training.

Fifth Generation Port - 长安陆港经济研究室 - 西安陆港经济研究室

 

Viewing from the eight factors: development period, main items, developing strategies, sphere of activities, organization features, production features, operation features and success factors, the author briefly expounded the evolution functions and characteristics of the first to fifth generation ports and the differences of all generation ports with sheet so that it would be convenient for readers to compare them. (Seeing table one)

 

1.2. The background for the birth of fifth generation port

Since the fourth generation port appeared in 1990, it has been more than ten years, the development concept and developing practices has changed greatly.

 

1.2.1. The international land port has sprout out in every economic center cities all over the China. In 2000, the authors put forward the new theory for international land port and inland port area and implement methods. Under the unremitting efforts and active impetus of local governments and logistics enterprises, international land ports and inland port areas are successively built around the country. In the inland cities, for example: Zhengzhou, Shijiazhuang, Shenyang, Houma, the land ports are constructed successively. The ports as Shanghai, Lianyungang, Rizhao are proposing building land ports in main cities of economic hinterland. There are more than 50 projects are building currently or scheme to construct.

 

1.2.2 The first international land port commenced construction. On April 5, 2004, Xi’an government decided to build the Xi’an international land port district project in the Baqiao area of Xi’an. The Xi’an international land port district was a provincial level development zone which was based on Xi’an international land port and featured modern international trading logistics. The development district was located in the territory of Xinzhu Street and Xinhe Street in the northeast of Xi’an. The planning area was 44.6 square kilometers and the planning control zone covered an area of 120 square kilometers. Based on Xi’an comprehensive free trade zone, Xi’an railway container center station and Xi’an highway and dock as three supporting platform, the development zone would effectively exert the regional advantages and driving function of Xi’an in the center of new Eurasian Continental Bridge to provide all-round, effective and modern service for the economic development of northwest zone. It effectively improved the extroverted degree of economy in Shaanxi and the ability to undertake the transfer of eastern industry of Shaanxi. In addition, it became the window and the platform for western area to communicate with all the country and the world. The development zone was planning to construct six billion-industry groups: international land port group, port-surrounding economy group, resource and chemical industry trading group, modern logistics group, fashion-life services group and domestic trade group. Development zone was divided into eight functional areas: container handling area, comprehensive bonded area, domestic trade area, comprehensive service area, auxiliary facilities for living area, emergency logistics area, undertaking area for industrial transfer and the area for integrating building of urban and rural areas. The industrial development position of the development zone was defined as: building the biggest international land port of China and the biggest distribution center of commercial logistics of the middle and upper Yellow River, creating a modern services city.

 

1.2.3 Original shape of the child-mother port by joint operation and cooperation. In 2007, Tianjin planed to build no-water port in 12 provinces in Northern of China and co-signed the Protocols of Intent about Building Inland No-water Port with the 12 leaders from 12 provinces in Northern of China. This behavior had the basic features of fifth generation port.

 

1.2.4 The capacity of port was excess which forced ports to look for new develop space. The subprime crisis of America led to the worldwide economic crisis as well as the hardship for the shipping industry. The traditional development mode of the port met severe challenges.

 

Both the world economic crisis and the overcapacity situation brought a dilemma for the port. The theories and methods of international land port and inland port were brought out and the international land ports and the inland ports were got to build over half of China, both of which made the development of the large harbor break the specialized range of fourth generation port. The birth of the objective reality and the new theory for the harbor development laid the foundation for the development of surpassing fourth generation port. Under such circumstance, the author put forward the fifth generation port—child-mother port by joint operation and cooperation, in order to assist large harbors comb out an expansive development idea for future.

 

2. Fifth generation port— child -mother port by joint operation and cooperation

2.1. The basic conception of the fifth generation port—child-mother port by joint operation and cooperation: it is taking big harbors as the mother port (transshipment port) and the international ports, feeder ports and inland ports as the child-ports to form a group of child-mother ports that mother port and child-ports are coexistence and co-prosperity, joint-venturing and cooperative development. It expands harbor business in the indirect economic hinterland and direct economic hinterland in reticulate form and foster international trade source for inland area to provide harbor services for inland area and propel inland cities to build international land port and develop port-surrounding business regions, then to drive the nice development of export-oriented economy in inland areas. It makes the large harbor break though the mode that only develops surrounding the sea. It set up the innovative concept of deepen into economic hinterland in inland and establish “port chain stores” in inland economic center cities. This paper is based on Tianjin port to discuss the fifth generation port (seeing picture).  

 Fifth Generation Port - 长安陆港经济研究室 - 西安陆港经济研究室

 

2.2. The fundamental features of the fifth generation port—child-mother port by joint operation and cooperation

2.2.1. Development stage: the fifth generation port was begun in 2007. On July 19, 2007, the Tianjin government held a forum named “colloquium to promote cooperation among regions”. The persons in charge of 12 provinces in Northern China and the leadership of the relevant ministries of country attended the meeting. On the conference, Tianjin government declared that: the Tianjin port would establish inland no-water ports in every logistics center cities and the border port of transit in northern China, and it would fully carry out the customs clearance mode of “territorial declaration, port clearance”. The 12 government discussed with customs and inspection and quarantine apartment. They tried to make Tianjin port or other border ports to unify specialized standards and manage mutual cognitive mechanism with green-road enterprises in every provinces and cities. In this way, the service function of the Tianjin Dongjiang bonded port area would be stretched into inland. They set up the big customs public service platform in north area, promoted cooperation among ports, serviced for regional economy and established rapid channels for ports logistics and so on. Their aims were establishing regional customs cooperation mechanism, setting up service platform for regional customs clearance, improving service measures for regional customs and driving regional economic development. During the meeting, Tianjin government and other 12 provincial leaders of northern China had co-singed: Protocols of Intent about Building Inland No-water Port, Tianjin Protocols for Cross-Regional Cooperation and Memorandum for Constructive Cooperation of Big Customs in North Area. The core content of this meeting and the signing of those documents clearly embodied the fundamental concept and development idea of fifth generation port—child-mother port by joint operation and cooperation. Hence, it is more suitable to regard the meeting held by Tianjin government in 2007 as the beginning of the fifth generation port.

 

2.2.2. Main Products: Container transportation is the main part of the fifth generation port. The transporting way for container lays foundation for the development of child-mother port jointly cooperated by harbors, land ports, inland ports and feeder ports.

 

2.2.3. Developing strategies: basically, the developing strategies of the first, second and third generation ports is: Improve the capacity of ports and meet the requirements of outward transport. The developing strategies of the fourth generation port are: jointing venture between port and waterway, strengthening alliance among ports and propelling the development of port business. There are two strategies for the development of the fifth generation port: first is that harbors and inland areas jointly “foster inland foreign trade source, increase the total supply of goods and coexistence and co-prosperity with inland”, second is to heighten the quality and efficiency of services and expand the outward portion. The method is to establish port area and branch office jointly operated or cooperated in inland to provide port service like the ports for inland; harbors, international land ports and feeder ports are jointly operated and enlarge the source of goods.

 

2.2.4 Realm of activity: the fifth generation port should be based on port business. If the extension services such as the assembling & evacuating and logistics distribution, though they have their unique advantages, the disadvantages would be more. Because different business are with varied elements and this would lead to the lack of management personals and management methods. As a result, many unfavorable developing factors would come out, such as: excessive investment in fixed assets, overlong of capital chain, overload of capital burden. All above would affect the development of the main business of port.

 

2.2.5 Features of organization: firstly, coastal ports, inland ports and feeder port compose a co-operated child-mother port. Secondly, the headquarters of harbor group jointly operate with inland boundaries, and they run business cooperating with feeder ports and international land ports settled in economic hinterlands.

 

2.2.6 Features of producing: the fifth generation port takes harbors as mother-ports (transshipment port) and the international ports, feeder ports and inland ports as the child-ports. They coordinate and cooperate mutually, fight for the supply of direct and indirect economic hinterland, expand the sphere of the ports and develop port business.

 

2.2.7 Features of operation: the properties of international land port, feeder port and inland port are dissimilar and the assorted relationships of them are very complicated and quiet different, hence, it would be difficult for only one kind of operating model to cope with them. Therefore, the fifth generation port need to adopt separately associated operation with international land port, feeder port and inland port in sole proprietorship or joint-venture modes according to their different characteristics.

 

2.2.8 factors of success: the size of foreign trade in direct and indirect economic hinterlands of fifth generation port decides the total volume of freight; the cooperation relationship and the service quality of fifth generation port determines the outward share in economic hinterland for harbors; the future developing coverage of export-oriented economy is determined by the understand of the fifth generation port’s inland cities to international land ports and inland ports, the strategic position of harbors’ inland-toward development, the strategic developing position and planning construction of inland cities toward “constructing international land port, expand port-surrounding industry zone, promoting internationalization of city”. All above are the key factors for the successful development of fifth generation port.

 

3. Discussions for the joint-operation & cooperation mode of fifth generation port

The fifth generation port is taking big harbors as the mother port (transshipment port) and the international ports, feeder ports and inland ports as the child-ports to form a group of child-mother ports. It has various cooperation modes. Here, the modes would be discussed one by one:

 

3.1. Cooperation modes between large harbors and inland ports

Large harbor found inland port in inland cities with assistance of operational branch (seeing figure 2), inland cities establish international land port to accept and manage inland ports of every coastal harbor (seeing figure 3). In this case, coastal harbor and inland city reach a win-win development through cooperation. The inland port is settled as cargo handling area by coastal harbor and operational branch is a must settlement for the convenience of harbor operated in offsite. Since that there are no regulations, rules or management systems suitable for land port and land international transportation currently, international land port is unable to participate in land international transportation directly. Consequently, it is the main practical means for coastal harbors settling inland ports in inland cities to evade the short of systems.

 

Large harbors should utilize the advantage of massive containers. They set up branches and inland ports in inland to extend the port branches to the inland cities (like that harbors settle chain store in inland). Their functions are: first, turn indirect economic hinterlands into direct economic hinterlands; second, turn the container conveyance between inland and harbor into container conveyance among ports or inside ports; third, provide international logistics services as harbors for inland areas and then promote development of inland foreign trades.

Fifth Generation Port - 长安陆港经济研究室 - 西安陆港经济研究室

 

3.1.1. Operation methods for inland ports

Tianjin port has settled branch in Xi’an and constructed Xi’an port of Tianjin port. We will take this as the background to talk over operation methods for inland ports. Firstly, the container handling zone for Tianjin port settled in Xi’an is used for loading, unloading, stacking, assembling and storing containers for Tianjin port so that it would be more easy for producing scheduling management of port. Secondly, upgrade the agency to branch office. Tianjin port has registered a commercial branch of Tianjin port in Xi’an. The branch undertakes the operation and management of railway and road transportation from Xi’an to Tianjin port. In this way, the shipper and the consignee both are Tianjin port which makes the containers railway and road transportation out of Tianjin port becoming “Tianjin port rents the railway and roads for inner dispatch. The branch provides operators’ guarantee for Tianjin port expanding business in Xi’an.

 

3.1.2 the exploitation and operation modes of inland ports

Different harbors in different inland cities have significant difference in volume of business and the relationship of density. therefore, the development and business model of harbors or inland harbors is different. This paper mainly focus on four ways: First,independent exploitation & operation. Second, Cooperative exploitation, independent operation. Third, Renting some lands, independent operation, Fourth, Coordinative exploitation, assistive operation.

 

3.1.2.1. independent exploitation & operation. A harbor founds inland ports and operates branches on his own. For example, Dalian port independently bought some lands in Changchun city to build logistics facilities such as container stocking and storage. It established “Changchun port of Dalian port” and registered “Changchun branches of Dalian port” to carry out the port business in Changchun.

 

3.1.2.2. Cooperative exploitation, independent operation. Several harbors cooperatively exploit their own inland ports and establish their own branches in inland cities. For example, Tianjin, Qingdao,Shanghai and Lianyungang, four ports developed inland ports in Xi’an land port cooperatively and found Xi’an port of Tianjin port, Xi’an port of Qingdao port , Xi’an port of Shanghai port and Xi’an port of Lianyungang port respectively. Then, they registered Xi’an branch of Tianjin port, Xi’an branch of Qingdao port, Xi’an branch of Shanghai port and Xi’an branch of Lianyungang port to separately develop port business in Xi’an (seeing figure 3).

 

3.1.2.3. Renting some lands, independent operation. Harbors rent some place in inland container stations, set up inland ports, register branches and independently operate container business.

 

3.1.2.4. Coordinative exploitation, assistive operation. Harbors assist inland logistics enterprises, which has the conditions, to found inland ports and build up a close cooperative relationship to develop the container business.

 

3.1.3. it is definitely be a money-making methods that coastal harbors establishing branches and inland ports in inland cities. Firstly of all, the source of profit is more. First, a huge operating income. In 2008, the containers from Xi’an to Tianjin was about 12,000TEU. The freight and port fee for one container was about 3,000yuan and the income for one year would reach 40,000million yuan. Calculating as 8% gross margin, it would be 3.2million yuan. Second, railway transportation and road transportation give a discount about 4~6% to a big customer (harbors are big customers). The price discount could be not only profit but also a method beneficial for customers. Third, an adding value for real estate. Inland ports are the key points for logistics. As time flies, the values of lands and houses would be higher. Secondly, the operation of branch merely takes working capital. The import & export dealers ask branches to deliver the containers and the settlement way for branches dealing with outbound freight business is “one order one calculation, one day one settlement, payment first, then receive”, while the settlement way for branches and transportation department (railway station, road convoys) is “one month one settlement” or even a longer account period. Hence, there would be freight and miscellaneous fees from import & export dealers always scrolling on branch account. Thirdly, the operation and management of inland ports are basically same to harbors and harbors have mature management experience and lots of management talents.

 

3.1.4. Advantages and disadvantages of inland ports

Advantages: firstly, the operability of practical shipping business is powerful. It can make use of the existing ocean transport mechanisms and directly engage in international transportation, which is the direction for the construction and development of inland international logistics in long terms. For example, goods export from Xi’an to Sydney. In the price item on trade contact, it is filled FOB TianJin USD66.00/Pc. Its loading port is Tianjin harbor(Xi’an port), the destination is Sydney harbor. Transhipped via Beijiang port of Tianjin harbor, the delivery is able to completed in Xi’an. Similarly, goods import from Sydney to Xi’an, the price item on trade contact is fill in CIF TianJin USD88.00/Pc. The loading port is Sydney and the destination is Tianjin harbor (Xi’an port). Transhipped though Beijiang port of Tianjin harbor, the import consignee could be concluded in Xi’an. Import&export merchants do the same operative process of foreign trade and outward freight in Xi’an and Tianjin, the only thing different is that transit fees from Xi’an port of Tianjin harbor to Beijiang port of Tianjin harbor is added. Secondly, the inland port is the intersection for economic cooperation and development of coastal harbors and inland cities. For example, Tianjin port could establish its inland ports in 12 inland provinces and cities. Thirdly, it is flexible. One inland city can have inland ports of several coastal harbors. For example, there are several ports in Xi’an, such as Tianjin, Qingdao, Shanghai, Lianyungang. 

Fifth Generation Port - 长安陆港经济研究室 - 西安陆港经济研究室

  

Disadvantage: firstly, it is unable to satisfy the international transportation among international inland cities. For example, it is impossible to realize the transportation from Xi’an to Moscow within inland ports. secondly, it is a little unreasonable for inland ports participating in international transportation.

 

3.2. cooperation mode between large harbors and international land ports

3.2.1. Definition of international land port. International land ports are the stations that set up in the intersection of railways and roads in inland economic center cities and they service for loading and unloading goods and temporarily storage. Those are commercial ports settling for export in accordance with related international transportation laws, treaties and conventions. International land ports, whcih are founded by coastal harbors, are the feeder ports and operation platform of inland economic center cities and provide convenient and quick international harbor services for the development of inland areas.

 

3.2.2. Names of international land ports. There are three reasons for naming international land port. First, goods are loaded/unloaded and transported on land, ports are constructed on land, the goods transported are international; second, names conform to the operation requirements of international transportation; third, they are in line with the sequence of international port naming: harbor, river port, air port and land port, all the names are unified. Therefore, it is suitable that international land port is a formal name and other name is a nickname. For example, Xi’an international land port. In practical operation it is called “Xi’an port”. To distinguished from Xi’an air port, we call it “Xi’an land port”.

 

3.2.3. The advantages and disadvantages of international land port. International land port has a real administrative meaning in coping with complicated continent international logistics and an actual operation meaning for the long-term development of inland international logistics. However, it still has no practical meaning because of the absence of suitable regulations, rules and management systems for land port and land port international transportation.

 

There are lots of modes of international land ports. For example, international land port settled abroad as Ulan Bator international port; domestic international port as Xi’an international port; independent operation international land port, cooperative operation international land port and so on. Based on the facts, the cooperation mode between harbors and international land ports could be independent operation, joint-venture operation and cooperative operation. Since that the actual operation meaning of the cooperation between harbors and international land ports are too small and too abstract, this paper wouldn’t discuss it. Operation could consult the cooperation modes of harbors and inland port or feeder ports.

 

3.3. The cooperation modes of large harbors and feeder ports. It has a long story of the cooperation between large harbors and feeder ports. People who engage in harbor business has mature experience and methods. It would not be discussed in this paper.

 

4. The problems existed in the development of fifth generation port and solutions

4.1. Problems existed.

The main problems of the fifth generation port are the coordination with relevant enterprises and public institutions, such as: inland local government and railway department, during the developing process stretch into the inland economic hinterlands. The principal problems are as followed:

 

Firstly, the problem of large harbor itself. Though the harbor has the experience of planning constructing and operating the harbor and river port, it has no experience of planning constructing and operating international land port and inland port. There are some similarities between harbor and land port while there are some big differences. All those differences determine that we need to re-research and design am implementation plan instead of copying the experience. Besides, the planning construction of inland port is limited by inland governments and other harbors.

 

Secondly, the problems of inland governments. The inland cities are short oof experience of international harbor management. They focus on developing their own international logistics while know nothing about how to perfect the logistics systems of international land ports of theirselves. If the planning construction is unqualified, it is easy to cause the blind development and unwell development. For example, some cities enlarge the construction blindly. One harbor business area covers more than 100 square kilometers and after years it is still under planning design phase. Some cities just can be used and just build some place for container stacking without considering the problems of coordinative development between international land port and regional economy. And some others are much easier. They just announce to relevant harbors: we need to construct international land port and we will be cooperative to build whatever you like.

Fifth Generation Port - 长安陆港经济研究室 - 西安陆港经济研究室

  

Figure 3

Thirdly,scientifically planning the development of regional problems surrounding international land port. A relatively scientific and mature developing idea for regions surrounding international land port is: basing on the international land ports and relying the advantage of international logistics resource to set up harbor-surrounding industry zone (the harbor-surrounding industry zone consists of harbor-surrounding industry area and harbor-surrounding service area). The huge production and huge volume of the group of the harbor-surrounding industry enterprises provide sufficient goods source for land port and the harbor-surrounding service area gather the sources of economic hinterland, then both of them form an organic relationship among international land port, port-surrounding industry zone, inland city, direct and indirect economic hinterland of land port. These promotes the developing mode of “ setting zones near harbors, feeding harbors on zones, harbors and zones associated, building harbor to booming cities”, which makes inland cities developing into international harbor cites (seeing figure3, the relationship figure among Xi’an land port, every inland port and economic hinterlands). Nevertheless, this idea have not been accepted by inland governments, coastal harbors, planning design unit and the academia. the arrangement and planning of the international land port and the regions close to land port are still on the primary stage.

 

4.2 solutions for the problems

The first step for solving problems is study and research. With the coordination of the National Ministry of Transportation, the Ministry of Railway, the Ministry of Commercial, the Administration of Customs and other departments, large harbors, inland local government, and railway department with enterprises and public institutions to study and research the arrangement and planning of international land port, inland port and port-surrounding regions to reach the goal of improving oneself, forming common sense and developing jointly.

 

The second step it to set up international land transportation department in conditioned universities. International ocean transportation has maritime universities, international air transportation has aviation academies. By the same token, international land transportation should has international land transport college. The integrated platform based on academy is about the the theory researching, system setting, experience inter-communication, cooperative development and talent cultivating of international logistics, which has made a long-term effective contributions for the development of fifth generation port and internationalization of inland cities.


Reference:

 

1.Sun Liang, the 22th of The New Concept of Fourth Generation Port and the Developing Tendency of Chinese Harbor Logistics· China Harbors and Piers.

 

2.Xi Ping, Arrangement and Program of Xi’an Land Port and Port Industrial Zone, China and Foreign Logistics, 2007 May-June.

 

3. Xi Ping, Constructing the International Harbor in Western China--the Idea of Xi’an International Land Port. Tangdu Journal, the forth of 2001.

 

Contacting:

 

Company: Center for Landport Harbor Economy and Logistics Development Research Xi’an International University

Address: No.408 North Zhangba Road Xi’an Shaanxi

Postcode: 710077

 

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