Dandong's reach into the hinterlands and Korea attracts more investors

Dandong Industrial Zone, one of the five key coastal investment destinations in Liaoning province, is seeking more investment from home and abroad as it plays its strong card of access to China's hinterlands and both Koreas

Facing the Democratic People's Republic of Korea (DPRK) across the Yalu River, a boundary river, the zone in Dandong, a northeastern city in the province, provides a convenient access to the Korean peninsula.

The zone has a planned area of 97 sq km, including an initial area of 39 sq km. The initial phase is designed for heavy industry, such as machinery and equipment, shipbuilding, petrochemicals and steel, along with and export-oriented processing and bonded warehouses. It will also include a modern services sector, including for exhibitions, commerce, logistics, finance, tourism and entertainment.

After the zone's projected completion in 15 years, its gross domestic product is projected to reach 60 billion yuan.

Convenient transportation

A 15-miniute drive to an airport, a railway station, entrances to expressways and a port, the zone enjoys a convenient transportation network, covering sea, land and air.

Dandong Port has established shipping lines for bulk cargo, containers and passengers reaching more than 80 harbors in at least 40 countries and regions.

Dandong Airport hosts a number of airlines that serve domestic and overseas cities, including Beijing, Shanghai, Chengdu, Shenzhen, Sanya and Seoul.

Dandong also has a number of large transportation projects under construction or planned to begin construction soon.

A pan-Asian railway network developed by the United States, which is designed to link the Korean peninsula, China, Mongolia, Kazakhstan and Russia, will run through Dandong.

A railway network connecting Dandong and other 13 cities in northeast China is also being built that will bring the city closer to the nation's vast inland resources.

At 220 km to Pyongyang and 420 km to Seoul, the Dandong zone enjoys a unique advantage in access to rich resources in minerals, labor and technologies of its two neighboring countries.

Since an official document released by the State Council in 2005 announced that the central government is promoting Dandong's developing into a logistics and trade hub, the city has been making best use of its geographic location and playing a key role in the northeast Asian economic circle.

Rich resources

With well-established hydraulic, thermal and wind power facilities, the zone's total installed capacity has reached 2 million kW.

The figure is expected to grow to 4.5 million kW at the end of the 11th Five-Year Plan (2006-10).

The zone is also home to 64 kinds of minerals, with its reserves and output of boron topping the country.

As well, its green environment coverage is reported to reach 66 percent.

With water quality above World Health Organization standards, the zone is rich in water resources, 4.5 times more per capita than the provincial average.

As a tourist destination, Dandong is well known for its impressive historic sites and attractive natural landscape, including three national-level scenic spots, two national natural reserves and two natural forest parks.

In addition, rich human resources also add the allure of the zone.

Booming construction

To facilitate construction of its current projects and attract more investment, local authorities have formulated a series of favorable policies.

Geographical advantages, rich resources and a friendly government environment have so far attracted 65 projects to the zone, with a total investment value of 8.94 billion yuan.

Of those, 25 have completed construction and begun production. Annual sales from completed projects are expected to reach 800 million yuan.

A number of big projects are now under construction, among them a 2 million ton, $120 million soybean processing plant.

Its first million-ton production line is being built, with another production line expected to be put into operation by the end of next year.

Construction is also underway on a 960 million yuan grain berth and a 6 million ton grain logistics project with an investment value of 300 million yuan, both funded by Dandong Port Group.

Another 103 projects with a total investment value of 22.1 billion yuan are expected to start construction in Dandong before the end of the year.

(China Daily 03/05/2008 page28)