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Viewing cable 09SHANGHAI335, CHINA'S PORT OF NINGBO SEEKS CLOSER TIES WITH THE U.S.,

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Reference ID Created Released Classification Origin
09SHANGHAI335 2009-07-27 08:19 2011-08-23 00:00 UNCLASSIFIED Consulate Shanghai
VZCZCXRO6874
RR RUEHCN RUEHGH
DE RUEHGH #0335/01 2080819
ZNR UUUUU ZZH
R 270819Z JUL 09
FM AMCONSUL SHANGHAI
TO RUEHC/SECSTATE WASHDC 8170
INFO RUEHBJ/AMEMBASSY BEIJING 2978
RUEHCN/AMCONSUL CHENGDU 2127
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHGZ/AMCONSUL GUANGZHOU 0585
RUEHHK/AMCONSUL HONG KONG 2296
RUEHSH/AMCONSUL SHENYANG 2118
RUEHIN/AIT TAIPEI 1917
RULSDMK/DEPT OF TRANSPORTATION WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHEHAAA/NSC WASHINGTON DC
RUEHGH/AMCONSUL SHANGHAI 8821
UNCLAS SECTION 01 OF 02 SHANGHAI 000335 
 
SIPDIS 
 
STATE ALSO FOR EAP/CM, INR/EAP, EEB/TRA, INR/B 
USDOC FOR ITA DAS KASOFF, MAC/OCEA - SZYMANSKI 
TRANSPORTATION ALSO FOR DAS JOEL SZABAT 
TRANSPORTATION ALSO FOR X1, X40 
 
E.O. 12958: N/A 
TAGS: CH ECON EIND ETRD EWWT PREL
SUBJECT: CHINA'S PORT OF NINGBO SEEKS CLOSER TIES WITH THE U.S., 
WELCOMES U.S. LOGISTICS COMPANIES 
 
1. (U)  Summary: During a July 13-14 visit to Ningbo, the Consul 
General (CG) toured the massive Port of Ningbo, second only to 
Shanghai in container throughput.   Officials of the Ningbo Port 
Company Ltd. (NPCL) gave an overview of the port's features 
while explaining how the port has fared during the global 
economic crisis. Officials expressed their wish to increase 
imports from the United States and for a U.S. company to 
establish a logistics center in Ningbo.  End summary. 
 
2. (U) Background on Port of Ningbo: The Port of Ningbo, a 
natural deepwater port, now handles approximately 7 percent of 
China's total trade volume.  As of 2009, Ningbo is the second 
biggest port in tonnage and second largest in container 
throughput in China (Shanghai is first).  It is in the world's 
top 10 in terms of tonnage. The port can handle some of the 
world's largest ships (up to 300,000 tons) and has rail, road, 
pipeline and air connections. 
 
------------------------------------- 
A Comprehensive, Multi-Functional Port 
------------------------------------- 
 
3. (U)  With a natural deep-water harbor sheltered by the 
Zhoushan archipelago, Ningbo is one of China's oldest ports.  In 
a July 13 briefing, NPCL President WU Jin Kun explained that the 
Port of Ningbo is a comprehensive, multi-functional port with 
small, medium and large berths.  Ningbo Port includes 5 port 
areas: the old port of Ningbo, Beilun, Zhenhai, Daxie and 
Chuanshan. The main container facilities in Ningbo are in 
Beilun.  The terminals in Zhenhai are the site of the first 
phase of China's strategic petroleum reserve (SPR), which it 
began filling at the end of 2005.  The Port has both rail and 
road connections and handles water-to-water transshipments. 
 
4. (U)  Ningbo Port has a total capacity of 15 million TEU 
(`Twenty-Foot Equivalent Unit', a measure of capacity of 
containers).   In 2008, the entire port handled 10.84 million 
TEU.  Most major shipping companies do business with the port, 
including China Shipping, OOCL and APL. Advanced port machinery 
includes twin quayside crane systems, produced by Shanghai 
Zhenhua Heavy Industry Co. Ltd. (ZPMC), which can handle four 
containers at a time. There is a staff of 15,000 working at the 
port, 80% of whom are locals of Ningbo. 
 
--------------------------------------------- -- 
Container Throughput Down, Dry Bulk Shipments Up 
--------------------------------------------- -- 
 
5. (U)  In first-half 2009, container throughput declined over 
10% compared with the same period last year. Port officials 
attributed declining container throughput and shrinking external 
demand to the global economic crisis. However, Board Secretary 
HUANG Weiping said July shipments appeared likely to exceed 
June's level, which he regarded as a sign of a recovery, albeit 
slow. Port officials reported that dry bulk shipments have 
remained solid throughout the global downturn due to China's 
high demand for raw materials.  President Wu said the port 
planned to expand its dry bulk capacity to meet increasing 
demand. 
 
-------------------------------- 
Port Seeks Closer ties with U.S. 
-------------------------------- 
 
6. (U)   Board Secretary Huang, and Foreign Affairs Director 
JIANG Fengxiang explained that Ningbo has a significant trade 
volume with the United States. The administrators of the port 
are seeking to make it a terminal for technical and machine 
products imported from the United States. As such, Jiang 
expressed the need for a U.S. company to set up a logistics 
center in Ningbo. 
 
------------------------------------------ 
Little Benefit from Hangzhou Bay Bridge 
------------------------------------------ 
 
7. (U)  The CG inquired whether the recently completed Hangzhou 
 
SHANGHAI 00000335  002 OF 002 
 
 
Bay Bridge was having any noticeable impact on the port. Jiang 
said given the high toll, USD 11 one way, it has not yet had the 
hoped for impact on the port's throughput. 
 
8. (U)  The CG was accompanied by State summer intern and LES 
Economic Assistant (notetakers). 
CAMP