The Project of First Phase Construction of Jiangnan Container Port Zone of Wanzhou Port

Contact Company: Wanzhou Port (group) Co., Ltd.
Contact Person: Xiong Weiming
Contact Add: The Comprehensive Office Building of Wanzhou Port Administration Bureau in Hongxigou Port Area
Post Code: 404000
Tel: 0086-13308261569
Fax: 0086-23-58295588
E-mail: luoshaolu@vip.sina.com

I. Responsible Unit:
Wanzhou Port Administration Bureau, established in Jan. 1952, has changed to Wanzhou Port (Group) Co., Ltd. through transformation of system of ownership in June 2003.The company owns 15 subordinate basic units and 5 share-controlling limited-liability companies with 250 million RMB yuan registered capital and 500 million RMB yuan fixed assets which will become 1billion RMB yuan after the reconstruction. At present, the company is undertaking the constructions of railway special lines in Hongxigong port and Jiangnan Container Port Zone of Wanzhou Port.

II, Project Details:
1, Necessity: Wanzhou District, situated in the center of Three Gorges reservoir area and located in the combination part of the economies of Southwestern China and the Yangtze River basin, has the characteristics of both economic regions and plays a function of linking the two economic regions as well. First, the construction of Wanzhou Port will adapt to the demand of building Wanzhou District into a large city with one million population and a modern logistics center in the western regions. Second, with the completion and opening to traffic of Dazhou-Wanzhou Railway, Wuqiao Airport, Wanzhou-Chongqing express highway, the railway special line of Hongxigou Port and Wanzhou-Yichang Railway successively, the communication and transportation capability of Wanzhou District will be greatly improved and the multi-pattern combined transportation will come into being making the service area of Wanzhou Port enlarged to northern and western Sichuan, southern Shanxi and northwestern Hubei. Third, Wanzhou Port is the fine deepwater port on the upper reach of the Yangtze River and one of two key ports of Chongqing Municipality. With the strategy of large-scale development of the western regions going into deep gradually, the development of export-oriented economy and constant expansion of foreign trade, large quantity of goods fit for container shipment need to be shipped with containers. Fourth, the present passing capability and matching equipments of Wanzhou Port are far from meeting the requirement of the economic development. In this case, it is quite necessary and impending to build the Jiangnan Container Port in order to bring into full play the advantages of Wanzhou Port as the water gateway of the southwestern regions and a comprehensive communication hub.

2. Feasibility: The natural environment of Jiangnan Container Port Zone is suitable for port building and the external coordination conditions of transportation, water-supply, electricity, communication and building material, etc are good..

3. Construction Scale and Period: Per the principle of one general planning and implementing by stages, the first phase construction scale of Jiangnan Container Port Zone is to build within 3 years two 3,000 ton container special berths and their matching facilities with an annual handling capacity of 200 ,000 TEU.

4. Total Investment: The total investment is about USD81 million.

5. Construction Situation: The project will enjoy many national preferential policies for the Three Gorges project resettlement and big development of the western regions and preferential policies offered by Wanzhou District Government. The water and land transportation are convenient.
- Market Forecasting:
According to Wanzhou economic and social development plan and container shipment development trend, the annual handling capability of Wanzhou Container Port is expected to reach 430,000 containers in 2020.

IV. Profitability Analysis
The project annual income will reach USD17.75million when it reaches its designed capability according to the present charging standard of USD88/TEU of loading and unloading containers. The financial internal profit rate of this project is 10.19% and the net financial value(I=8%)is USD13.18 million with 10.63 years recovery period of investment.

V. Cooperation Ways:
The project may be cooperated by means of share-holding or share-controlling.
- Preparation for the Project:
Presently, the survey, plan and pre-feasibility study report of the port engineering have been accomplished and the feasibility study of the project now is being carried out.