Guo Xiaohong

China’s shipping industry is to undergo readjustment, Huang Zhendong, minister of communications, told a seminar on water transport management.

The country will accelerate the development of container shipping and the application of liquefied-gas ships, auto roll-on-roll-off ships, and LNG containers to promote the modernization and specialization of the sector, according to Minister Huang.

China’s shipping industry has grown rapidly over the past two decades, since China introduced the reform and opening policies. Yet the structure of the shipping industry needs to be readjusted, as outdated ships and equipment still dominate the sector’s operation and production. So far, China has 6,000-plus shipping companies and 80,000 private shipping operators, with fleets totaling 260,000 ships. However, 79 percent of bulk freighters and 83 percent of oil tankers are not modern-equipped; inland water freighters are energy-wasting, and the cut-throat competition among the inland shipping enterprises has resulted in low shipping efficiency. n addition, in China's ports there are a large number of berths are operating with medium-to-low capacity. In addition, a shortage of container terminals is obvious.

The Ministry of Communications has decided to build new ports and renovate old ones so as to upgrade the shipping capacity and efficiency. Three terminal ports will be reconstructed and renovated in the south, north and east of China, respectively, and an international shipping center will be formed with more berths, covering Shanghai and the neighboring provinces such as Zhejiang and Jiangsu.

The ministry will also set up new shipping management regulations, with more stringent provisions governing the age and technical level of operating ships. Insurance requirements will be made more strict.

Various economic, technical, and legal measures will be employed to manage the total national shipping volume and promote the use of standardized and modern ships in inland water transport. Obsolete and old ships, including cement, wooden and propeller-driven ships, will be gradually replaced by technological-advanced ships with a greater handling capacity.