Sprawling industrial corridor set to revitalize Heilongjiang

When completed, the Harbin-Daqing-Qiqihar industrial corridor will provide a sprawling 830 sq km economic development zone for the three main cities of Heilongjiang province.

A national center of traditional industries where State-owned enterprises (SOEs) were the backbone, the industrial corridor is part of an all-out effort by local authorities to revive the once-stagnant economy.

Begun in 2005, the project aims to establish a hi-tech, export-oriented and eco-friendly economy that will spur growth in the entire province.

With well-established industrial facilities and rich human resources, the area enjoys distinct advantages in realizing the goal, according to the provincial government.

The three cities involved in the project - capital of the province Harbin, China's petrochemical cradle Daqing and machinery and equipment manufacturing base Qiqihar - are home to a number of industrial powerhouses including Harbin Power Equipment Corp, PetroChina Daqing Oilfield Co, China First Heavy Industries, and Harbin Aviation Industry (Group) Co.

The large SOEs have laid a solid industrial foundation and provide well-trained working labors for new investment projects.

The area comprising the industrial corridor also has strong research and development potential from its 40 colleges and universities, some 72 percent of the province's total higher learning institutes.

Two State-level hi-tech development parks in the region also provide a pool of competent technicians and researchers.

An ample supply of energy and a wide transportation network add to the corridor's attraction for investors.

The province's oil output accounts for about one quarter of the country's total. Efforts are underway to further develop its natural gas resources.

The province not only meets its own energy needs but also provides energy to other regions. It has a current generating capacity of 12 million kW, with facilities under construction to produce another 2.1 million kW.

Most of the industrial corridor is built on wasteland and saline soils too salty to grow crops, itself an innovation in land use.

Yet environmental issues have been high on the authorities' agenda.

"The ecological system is already fragile here. We cannot develop economy at the cost of environmental deterioration," local authorities said.

Potential projects that produce heavy pollution will be screened out during construction of the industrial corridor.

Investment boom

Private investment is expected to invigorate the local economy and play a pivotal role in building the corridor, according to local authorities.

In addition to capital, private firms will bring advanced managerial ideas and expertise to the area, the provincial government said.

Qiqihar plans a hi-tech development zone especially for private companies involved in machinery and equipment manufacturing, environmentally friendly construction materials and deep processed coal chemicals.

Daqing has simplified application procedures to attract green companies.

Authorities have also pledged to offer free consultancy on investment policies and the credit standing of local companies.

The efforts have brought results - 570 companies have thus far clinched deals, 307 of which are operational.

The industrial corridor realized 21.54 billion yuan in industrial output and 1.42 billion yuan in profit in 2007.

According to its development plan, the corridor is projected to attract 221.5 billion yuan investment by 2010, including 47.2 billion yuan in infrastructure facilities.

Authorities plan to encourage expansion in machinery and equipment manufacturing, petrochemicals, food processing, medicines and medical instruments, hi-tech and modern logistics by 2015.

(China Daily 06/17/2008 page15)