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Investment Highlights - > Sea transportation of Huanghua Port


I. Description of the project:
It intends to purchase one 10,000 tonnage cargo ship, two 5,000 tonnage cargo ships, two 3,000 tonnage cargo ships mainly for offshore cargo transportation. The main business ports are: Tianjin, Dalian, Yantai, Qingdao, Wenzhou, Shanghai, Guangzhou and etc. for transporting coal, grain, steel, salt, chemicals, machinery, ore and etc.

II. Investment and fund resources:
The total investment is 12.96 million USD with 6 million USD for foreign capital.

III. Market study:
In recent years, with the fast development of logistic trade of China, the international and regional economic exchange and material circulation are speeded up. Sea transportation is one of the main carriers of logistics. Since it has long transportation route, low freight charge, big freight volume, it plays more and more important role and develops fast. Comparing with other coastal cities, Cangzhou's sea transportation falls behind. According to Hebei provincial statistics, in 2001 Hebei province has 21 ships. The total transportation capacity is 207,700 tons. Among them, Cangzhou has only 2 ships, which is 9.5% the total and the transportation capacity is 2,700 tons, which is 1.3% the total. By the end of 2004, though Cangzhou sea transportation enterprises increased from two companies to six, more 16 ships of over 1,000 tonnage were added, the transportation capacity increased by 24,700 tons with investment of 22.84 million USD and the total transportation capacity reached 30,000 tons which is 4.7 times of that in 2002, yet it does not meet the demand of the development of the sea transportation as a coastal open city and has a large difference from that of other coastal cities. The sea transportation of Cangzhou has a great prospect.

IV. Benefit analysis:
Taking the example of the coal transportation from Tianjin to Shanghai: the voyage is 730 sea miles and the freight charge is 10 USD per ton. There are three voyages in average each month the gross income is 800,000 USD. The crew salaries, oil consumption, tax and other expenses are 3.46 million USD (the profit after tax is 2.31 million USD). It is predicted that the payoff period is 5.6 years.

V. Mode of cooperation:
Joint venture or contractual cooperation.

VI. Contact:
Cangzhou Port Investment and Development Co., Ltd.
Mr. Li Decheng
Tel: 0317-5766273
Fax: 0317-5767172
http://www.huanghuagang.gov.cn
E-mail: zsj@huanghua-port.com



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