A truck carrying marine lube oil worth $87,000 arrives at the Zhoushan Port Free Trade Zone in Zhoushan, East China's Zhejiang province on May 7. [Photo/WeChat account: china-zjftz]
Zhoushan Port Free Trade Zone (FTZ) recently launched the business of warehousing and distribution of bonded marine lube oil on a trial basis, with the first batch of lube worth $87,000 delivered to one of its warehouses on May 7.
It marks the first step of the zone in becoming a distribution center for bonded marine lube oil to drive the construction of a marine service base in Zhoushan.
Marine lube oil plays an essential role in ship maintenance by lubricating vessels' mechanical equipment. According to Cui Xiaojun, warehouse manager of the zone, the oil finds three markets in Zhoushan – international voyage ships passing by or handling cargo in Zhoushan, local pelagic fishing boats and ships being repaired in Zhoushan.
"The business, once officially launched with the support of Zhoushan Customs, will help boost the local ship repair industry by cooperating with the zone's bonded ship accessories distribution center, and will also boost the related imports and exports of the zone," said Cui.
Zhoushan Port FTZ started to develop a distribution center for bonded ship accessories in 2016. Over the past three years, it has distributed bonded ship accessories worth $310 million.
Cui added that the zone's trial run of the business has aroused many companies' interest, and three of them have negotiated with him to become involved.
The first batch of lube oil stored in the zone comes from Sinopec Zhejiang Zhoushan Petroleum Co.
The marine lube oil is stored at a warehouse of Zhoushan Port Free Trade Zone. [Photo/WeChat account: china-zjftz]
Manager Wang Jiao of the company explained that they did the business to see whether it will help save costs.
"We supply more than 50 percent of the marine lube oil in the Zhoushan market. We hope the distribution business offered by the zone will help save our import costs by increasing customs clearance efficiency and reducing logistics costs. With the growth of bunker fuel supply in Zhoushan, the market for marine lube oil is sure to boom," said Wang.
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