The Growth of China’s Port Sector
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efficiency nationwide. For dry ports, goods now need to be examined only once before being transferred directly to their destination. Thus, goods being shipped from an inland dry port can clear customs there rather than being reexamined when they reach a coastal port. Most dry ports also serve as logistics centers, providing customs and inspection services, storage services, issuance and execution of bills of lading, and other services. They also house branches of freight forwarders, shipping agents, and shipping lines that facilitate the receipt of goods, packing of cargo, consolidation of shipments, return of empty containers, and issuance of bills of lading for multimodal shipments having inland dry ports as the origin or destination. In contrast with Europe and elsewhere, dry ports are a relatively new part of Chinese logistics systems, first appearing in 2002. Their initial development was stimulated by the high costs of inland transport and the desire to extend the benefits of containerization as far inland from ports as possible. Their establishment has made a major contribution to the efficiency of freight transport in China. In addition, they have increased the capacity of coastal ports by providing storage and clearance facilities off-dock, thereby reducing dwell times in seaports. An overview of the location of dry ports is provided in map 1.3 earlier in this chapter. The example of Yiwu dry port (box 1.3) illustrates the rapid growth of inland ports and their reach into the hinterland. In recent years, China has focused on expanding the use of railways to move freight into the hinterlands. This expansion is encouraged by the continued construction of inland dry ports, which are often connected to the coastline by rail. Inland river ports drive the use of the inland waterways in transporting freight. The ports that moved the most container volume by rail are listed in table 1.8.
BOX 1.3
Yiwu dry port and the evolution of small-merchandise export inspection Yiwu is in Zhejiang province in eastern China. An inland city, it has become one of the largest distribution centers in the world for small merchandise and is recognized by the United Nations as the world’s largest merchandise transaction market. In 2018, Yiwu achieved a turnover of ¥ 452.3 billion (US$68.2 billion), with a total import and export value of ¥ 256 billion (US$38.6 billion). To a large extent, Yiwu owes its success to its unique institutional and cultural environment. Nonetheless, the constant improvement of its transport connections within China and globally is an important factor in its success. It was given a boost when China shifted focus from domestic to international trade in 2002. Because the Yiwu market dealt with small merchandise, its shipments had particular “Yiwu characteristics,” with one container carrying
hundreds of different products. Although this was not a problem for the domestic market, international trade requirements required the filing of hundreds of documents for a single container, with both shippers and freight forwarders needing to repeat the filing of documents at several different customs offices. To deal with this problem, Yiwu set up a local customs office, which pushed for a specific form of customs inspection for small merchandise exports with Yiwu characteristics. In 2004, the central customs administration approved classifying such exports as “tourism shopping goods.” In 2009, Yiwu customs was officially recognized and authorized to carry out inspection of small merchandise on site, the first of its kind in China. In 2010, the Hangzhou customs office launched the reform of small-merchandise export inspection and testing. In 2011, China customs and Zhejiang province continued
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