Tianjin East Port, the new part of Tianjin Port nearing the end
of its first phase of construction, is receiving unprecedented
attention from both local and foreign investors.
Nine agreements of intention were signed yesterday with 12
companies including HSBC, China Merchants Bank and Mapletree
Logistics, the first batch of investors since the Tianjin East Port
project began in June 2002.
"Investors from home and abroad are showing great interest in
the East Port thanks to its high potential for economic growth,"
said Hao Yunhui, deputy director of the Department of Investment
with Tianjin Port (Group) Co Ltd.
The investment agreements come as the first 4 square kilometers
of the port are about to come into use. Hao said a further 16
agreements of intention were expected to be signed in the near
future.
The Tianjin East Free Port, with an expected area of 10 square
kilometers and the largest free port in China, is the major
drawcard for investors.
The State Council approved the free port in the Tianjin East
Port on August 31 last year. It is the second free port to be
established after the 8-square-kilometer Shanghai Yangshan Free
Port.
But the Tianjin East Free Port will enjoy more preferential
policies on financing and tax than the Yangshan Free Port. And
although both free ports cover the same business including
international trans-shipment, distribution, purchase, transit trade
and export processing the Tianjin free port will be more open.
This has sparked a rush of interest from international
investors, who have been in talks with the Tianjin East Port
Construction Development Co Ltd, responsible for planning and
developing the Tianjin East Port.
"There is huge potential, and the business environment here is
maturing," said Yu Liming, director of business development at
China Merchants Holdings (Hong Kong) Co Ltd. The company has made
an initial investment of 1 billion yuan to support logistics and
processing in the first phase of the Tianjin East Port, and "it
will add more investment".
HSBC is also considering joining the port, but no figure has yet
been set, said Russell W Shields, an executive from the bank.
The free port is expected to expand in the future and the
Chinese government is also likely to approve more free ports around
the nation on the basis of how well the Tianjin East Free Port
operates.
(China Daily February 9, 2007)