SHANGHAI: Shanghai International Port Group is on the hunt for investment opportunities in Europe as it looks to China’s national development strategy to grow in what it says are some very challenging years ahead for global shipping.
“We won the contract to build and operate the port in Haifa. This is just the beginning. We are interested in ports in Europe and closely following their development at the moment,” Fang Huajin, SIPG vice president told delegates at the Marintec forum in Shanghai.
Fang said general projections that the container shipping industry would grow by an average of 5 percent from 2016 to 2020 were “unachievable.” By focusing on the national development strategy outlined in the China’s 13th five-year plan, particularly the Belt and Road strategy and development plans for the Yangtze River hinterland, SIPG would continue to grow and maintain its position as the world’s number one port.
“The industry is facing a series of severe challenges in the coming five years. Global growth is weak, the recovery is uneven and uncertain and international trade growth is incomparable to what it was before 2007.
“We have a central place in China’s national development and are seizing the opportunity to build the national development strategy into our own strategy,” Fang said.
SIPG signed a deal with Israel in May to develop and run the new Haifa port in northern Israel for 25 years. According to the agreement, SIPG will invest around $2 billion in building port facilities and installing equipment at the port.
A 765-yard quay will be built during the first phase, which will eventually be extended to 1,640 yards. Upon completion, the port will be able to handle 1.86 million 20-foot-equivalent units per year, making it the largest in Israel.
“Investing in Haifa will help strengthen relations between Shanghai port and other ports along the Maritime Silk Road and form a closer trade network between Shanghai port and ports in Europe,” Chen Xuyuan, SIPG chairman, told state media when the deal was announced.
Fang said the port of Shanghai would exceed 36 million TEUs in 2015 and consolidate its position at the top of the global container throughput rankings.
