Tianjin Port: World-class Nexus

"Tianjin Speed" and "No-water Ports"

Ambitions, initiatives and miracles carried into the 21st century. By the end of 2004, the port's cargo throughput reached a staggering 200 million tons based on a surge of 100 million tons within three years that earned "speed" a new nickname and description. After another three years by 2007, the throughput increased to 300 million tons, the annual main business income and investment in capital construction both exceeded RMB 10 billion, and the navigation channel was promoted to the 250,000-ton class. Also by the end of the year, China's largest bonded harbor district – Dongjiang – started operation in Tianjin.

Looking back, the success of Tianjin's pursuit of excellence cannot be exaggerated. It took 49 years for it to reach a cargo throughput of 100 million tons, but only six years to more than triple that figure. Its four-pillar model for market exploration (container, coal, crude oil and minerals) was serviceable, but recently it has blazed new trails in trying to become an international sourcing and logistics hub. So far, Tianjin Port has built 16 "no-water ports" in inland areas such as Beijing, Inner Mongolia and Xinjiang. Its spoke and wheel configuration means more than 70 percent of the goods it handles and more than 50 percent of its imports and exports come from provinces and regions other than Tianjin, invigorating the regional economy.

Success breeds success and the port's achievements seem to come with an entourage of opportunities for learning and self-development that reach beyond the harbor facility and its particular business concerns.

Unprecedented expansion of China's foreign trade in the 1990s has exposed Tianjin Port to, and implicated governing bodies in, a multitude of financing choices for their civic projects. Financial instruments of both domestic and international capital markets, the establishment of port financial companies, the issuance of enterprise bonds – these refreshed funding models normally used for infrastructure construction. So far, Tianjin Port's total assets exceed RMB 60 billion, ranking it a respectable 366th among China's top 500 enterprises in 2009.

The Port of Tianjin is very much a part of the City of Tianjin, so for Tianjin's residents, quality of life issues demand dedication to the establishment of a "harmonious port." Moving coal wharves southward took 10 years and cost RMB 10 billion, but effectively tackled coal dust pollution. Tireless promotion of energy-saving methods and emission-reduction technologies has steadily lowered comprehensive energy consumption per unit. The port authority itself is proactive about building its corporate culture, tries to create job opportunities for the larger community, and has established the best salary and benefits package among its national counterparts. Benefits roll out in every direction. Self-made "blue-collar" experts are rising from the rank-and-file at the port, such as Kong Xiangrui. As a good corporate citizen, the port management body takes an active part in events and programs conceived in the public interest, repaying society by donating money to disaster areas and SOS Children's Village, and establishing foundations to aid workers in need.

After such success how does Tianjin top its own performance? Looking ahead, the Port of Tianjin seeks harmony with civic goals, and continues to pioneer and experiment in the shipping industry. It will open a "new blue sea" in four directions: development space, mode of business, capital operation and internationalization. Acceleration of four industries is entailed – port loading and unloading, international logistics, port real estate, and comprehensive port services.

It is predicted that by 2012 Tianjin Port's handling capacity will reach 460 million tons of cargoes and 13 million standard containers, and no-water ports will reach all inland areas. Tianjin Port will become an enterprise group with a sharp edge on international competition as a transnational port operator and developer. As northern China's international container hub it will face Northeast Asia and radiate to Central and Western Asia. Tianjin will keep up that winning streak by becoming the largest bulk goods port in northern China, not to mention the largest, most open and economically active bonded harbor district.