Cargo throughput at major ports in China continued to grow phenomenally, reflecting a booming foreign trade. Freight turnover at major coastal ports rose 19% in 2005 to 2.9bn tonnes. The Ministry of Communications (MOC) has projected a throughput of 5bn tonnes by 2010. Container traffic at Chinese ports (excluding Hong Kong) also recorded double-digit growth in 2005, up 23% year-on-year to 75.6m TEUs (twenty-foot equivalent units), according to the MOC’s 2005 Report on China Shipping Development. Double-digit growth continued in the first six months of 2006 and was projected to expand to 130m TEUs by 2010.

The mainland now boasts eight of the world’s top 30 container ports. Shanghai, the world’s third-largest container port, continues to expand rapidly and is a whisker away from replacing Hong Kong and Singapore as the world’s top container port. Meanwhile, Hong Kong’s advantages over Chinese ports are eroding, aggravated by high handling fees—about 20% higher than its mainland competitors. Container throughput growth at its major facilities in Kwai Chung has stalled.

Although the Chinese government has invested substantially in upgrading and expanding port facilities, many major ports are already operating at full capacity or above. In addition, ground transport to and out of ports cannot keep up. Further improvements of existing facilities and the shifting of some trade to second-tier outlets have brought temporary relief.

Away from the coast, feeder services are still the dominant form of maritime movement, since modern container ships can navigate only a small number of river ports. Local governments are addressing this problem by developing logistics facilities and introducing modern logistics and supply-chain management capabilities, especially at ports along the Yangtze River.

Table 12.7.1

Table 12.7.2