Li gives blessing to logistical reforms by private firm in FTZ

By Zhao Qian Source:Global Times Published: 2014-9-19 23:58:01

More investment will drive Yangtze economic belt


Chinese Premier Li Keqiang (L front) visits the Waigaoqiao logistics center of the China (Shanghai) Pilot Free Trade Zone (FTZ), east China's Shanghai, Sept. 19, 2014. Li Keqiang made an inspection tour of the FTZ from Sept. 18 to 19.


 
Chinese Premier Li Keqiang gave affirmation Friday to reforms of ports and shipping businesses by a local logistics firm in the China (Shanghai) Pilot Free Trade Zone (FTZ), and required other government agencies to learn from and promote the reforms so as to stimulate port construction along with the Yangzi River.

During his visit to Shanghai Waigaoqiao Logistics Center Ltd in FTZ, Li affirmed the company's reforms on tax refunds and cargo clearance in the zone.

The company has built an advanced logistic center and the largest cold storage facility in the FTZ, according to the company's website.

Shanghai Waigaoqiao could not be reached by the Global Times for comment by press time.

Li also noted that Shanghai will become the leader of the economic belt along the "golden waterway" on the Yangtze River.

Li made the remarks during a visit to the Shanghai FTZ, which is about to celebrate its one-year anniversary on September 29.

Analysts said the reforms of simplifying procedures for tax refund will enhance regional growth in Shanghai.

"Boosted by the reforms, cargo throughput at ports in Shanghai will rise," said Zhou Dequan, an analyst at the Shanghai International Shipping Institute. 

Previously, traders preferred other international ports such as Busan in South Korea, rather than ports in Shanghai, "partly because it always takes less time," Zhou said.

Some new customs rules at the FTZ have brought tangible benefits to traders. The average import clearance time at the FTZ has been reduced by 41.3 percent compared with customs areas outside of the FTZ and the export clearance time has been cut by 36.8 percent, according to a statement on the Shanghai Customs District's website on Thursday.

Pang Shiming, a senior manager at Beijing-based China Merchants Logistics, told the Global Times on Friday that "advanced storage, logistics and international ports will be part of the key factors for success of Shanghai FTZ."

Besides local benefits, the fast development of ports and logistics center in Shanghai is also meant to "drive freight capacity on the economic belt along with the Yangtze River," Pang noted.

China will invest a total of 36 billion yuan ($5.83 billion) in projects along the Yangtze River including rebuilding bridges and cleaning up mud to increase the freight capacity of the river, according to previous media reports.

The cost for transportation from central and western part of China to eastern areas will be reduced further through connecting ports along with the Yangtze River. For instance, the cost for shipping from Wuhan, Central China's Hubei Province to Shanghai currently is no more than half of the cost for railway transportation, according to Pang.

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