Zhanjiang aiming to be first port of call for businesses

City devoted to developing modern coastal economic belt and free trade port to help connect wider area with Belt and Road Initiative

Positioned as a sub-center in western Guangdong province, the coastal city of Zhanjiang has strategic plans to play a more important role in regional development.

"Zhanjiang is on a fast track pushed by unprecedented positioning and unparalleled support from the State and provincial governments," said Zheng Renhao, Party chief of the city.

The Golden Sand Beach is a major attraction in Zhanjiang and also a showcase of the city's good environment. [Photo by Chen Yu/China Daily]

From left: Zheng Renhao (second from right, first row), Party chief of Zhanjiang, and Zhanjiang Mayor Jiang Jianjun (second from left, second row) visit a company in Shenzhen during a trip for investment promotion. [Photo by Lang Shuchen/China Daily]; a cruise ship is ready to berth at Zhanjiang Bay. Fang Xiong / For China Daily; the night view of Zhanjiang Water Sports Center. [Photo by Lang Shuchen/China Daily]

A developing transport system is turning Zhanjiang into a transit base for international trade. [Photo by Lang Shuchen/China Daily]

The city aims to connect surrounding areas with countries and regions involved in the Belt and Road Initiative, and function as a free trade port and a pioneer in the marine economy, he noted.

Located on the west wing of Guangdong - one of the most affluent provinces in China - Zhanjiang was given the same importance as Shantou, on the east wing, as one of two new engines to bolster the province's economic growth by developing a modern coastal economic belt.

In brief, the ambition of the city will be realized through the construction of "a passageway, a free trade port and a pilot zone", Zheng said.

Transportation upgrades

Zhanjiang will upgrade its seaports, airport, railways and highways to build a transport system that can help the construction of the New International Land-Sea Trade Corridor, a major passageway to connect western China with BRI countries and regions.

"Our ports can work as a major channel for goods between Southwest China and the Belt and Road countries and regions. Our position as a regional hub will be strengthened," said Zhanjiang Mayor Jiang Jianjun.

China Merchants Group, a State-owned conglomerate headquartered in Hong Kong, signed a cooperative agreement with the city government of Zhanjiang in 2017, which agreed to invest about 46 billion yuan ($6.9 billion) to upgrade the city's port facilities, develop marine economy and build a cruise ship terminal.

The local government will kick off a project to upgrade the Zhanjiang deepwater port channel, which will be capable of holding vessels of 400,000 metric tons from the current 300,000 tons, Jiang said. After the improvement, the port will be an international seaway that can handle sea traffic from more than 150 countries and regions.

It is also trying to gain support from the central government to upgrade the bulk cargo terminal at Xiashan Port, Jiang noted. He added that the terminal will be turned into a transit base for international trade goods that can offer the best handling and distribution for the corridor.

The mayor said construction of a new international airport and its supporting projects, including a road and a high-speed rail station to connect the airport with the rest of the city, will begin within the year.

The city government is also applying to the nation's aviation authority to develop a pilot area for low-altitude airspace to general aviation.

Wider opening-up

According to the mayor, who is also a deputy to the 13th National People's Congress, the city intends to set up a free trade port.

"We are making every effort to get more experimental policies from the State and provincial governments first applied in Zhanjiang, so that the city can play a more significant role in opening-up in the coastal area of South China," Jiang said.

The local government will first set up a comprehensive bonded zone by the end of this year, then promote the ideas of putting Zhanjiang Port and Donghai Island on the map as a part of the China (Guangdong) Pilot Free Trade Zone, Jiang said. It also intends to explore new cooperation opportunities between Zhanjiang Port and the ports in Guangdong-Hong Kong-Macao Greater Bay Area, Jiang said.

The government will apply to set up a free trade port for commodity exchanges, he added.

While enhancing the union with the Greater Bay Area, the city will develop complementary industries with neighboring Hainan, including port processing and warehouses.

"The logistic cooperation is workable between Zhanjiang and Hainan, so we can join hands to build a commodity exchange center in Zhanjiang and an international shipping exchange in Hainan," Jiang said.

Zhanjiang can also build a warehouse to look after the international trade of Hainan, he added.

Marine economy

As one of China's first 14 coastal opening-up cities, Zhanjiang aims to be a national marine economy demonstration zone, according to the mayor. It will highlight the port industry, coastal tourism, cash crop farming with local characteristics and the union of civil and military industries.

"We will focus on big investment projects and the development of industrial parks - from single projects to a full industrial chain - which will be ultimately developed into a modern industrial system with high-level performance," Jiang said.

German chemical giant BASF will invest a total of $10 billion to build a chemicals production site on Donghai Island in southeastern Zhanjiang, about 40 kilometers from the city center. This is one of the biggest foreign investments that Zhanjiang has ever received. It is also the single biggest investment project the company has ever made internationally, BASF said.

Last year, Zhanjiang was selected as one of the top 50 cities with the greatest investment potential in China by World Famous Brand Assembly.