Dayaowan to bolster shipping center ambition with favorable policies
Dayaowan Bonded Harbor Area in Dalian is expected to be put into operation in the first half of the year, according to the city government.
After Yangshan Bonded Harbor Area in China's commercial hub Shanghai, and Dongjiang Bonded Harbor Area in Tianjin, which is an emerging economic center in North China, Dayaowan Bonded Harbor Area will be the third such port area in the country.
A bonded harbor area is defined as an enclosed area, consisting of a harbor and adjacent zones, where business operations enjoy preferential policies, on taxation and foreign exchange for instance.
Because of its similarity to a free port, a bonded harbor area is seen as a top-level comprehensive development zone in China and appeals to port cities.
However, to ensure healthy growth of the existing bonded harbor areas, the State Council has decided to shelve applications from other port cities for establishing such areas for the time being.
As one of the three such areas in the country, Dayaowan Bonded Harbor Area is expected to sharpen Dalian's edge as an international shipping center, Mayor Xia Deren said.
Due to shortage of such policy support in the past, Dalian used to lag behind in the race to be the number one shipping center in Northeast Asia, insiders said.
In contrast, its overseas rivals, including Pusan in the Republic of Korea and Nagasaki in Japan, have won more business opportunities for their free port policies.
Because of higher efficiency and lower costs, the overseas free ports attract a great amount of transit shipments originating from or terminating at Chinese ports.
Statistics show that more than 3 million twenty-foot equivalent unit (TEU) containers out of a yearly throughput of 11.44 million TEUs in Pusan were transit shipments from or to the north of China in 2004.
The fierce competition in the shipping industry requires an up-lift not only in port facility construction but also in policy support.
"The Dayaowan Bonded Harbor Area, with favorable policies similar to a free port, is expected to increase China's share in the Northeast Asian shipping industry," Chinaview website cited Dalian Bonded Zone administrative committee chief Zhang Shikun as saying.
It has far-reaching significance in building Dalian into a top international shipping hub in Northeast China, he said.
As part of Dalian Port, the bonded harbor area will cover 6.88 square kilometers and include a bonded logistics industry park and a number of specialized docks for loading and unloading containers and automobiles.
Tariff will not be imposed on goods shipped from abroad when they are kept within the area, while Chinese products will be treated as exports once they move into the area and thus be entitled to export rebates, according to related policies.
Meanwhile, trade between companies established in the area will enjoy exemptions on value-added and consumption taxes.
With efficient port operations and favorable policies, Dayaowan Bonded Harbor Area is anticipated to provide an efficient platform for international trade, logistics, export-oriented processing and exhibition, facilitating the flow of goods, capital, technologies and information.
Thus, construction of the bonded harbor area plays a key role in spurring growth of the local economy and boosting revitalization of traditional industrial bases in Northeast China.
Local authorities are revving up efforts to advance construction, Mayor Xia said, adding that this includes not only Dalian but entire Northeast China as well.
According to a development plan, the initial 2.8-square kilometer area will complete construction and be put into operation this first half year.
The bonded harbor, though still under construction at present, has drawn a number of leading companies from around the world to explore opportunities in Dalian
IMC Group, a well-known Singapore-based company in the world shipping industry, has pledged $50 million for the development of the international shipping center.
Further, about $90 million jointly invested by US-based Prologis and Dalian International Logistics Park will be used to build warehouse facilities in Dayaowan Bonded Harbor Area.
A number of other overseas investment projects are also under negotiation.
Dayaowan Customs has taken a quantum leap forward in the past decade. Transit of export and import goods through its area has increased to 37.1 million tons from 3.25 million tons 10 years ago.
Moreover, the number of containers crossing the customs area accounted for around 90 percent of the total in Northeast China.
(China Daily 03/13/2007 page20)
