Development and Technological Innovation

of Chinese Container Logistics

Qifan BAO 包起帆

1. Overview of Chinese Container Transportation in 2012

Chinese main ports(capacity above 2 million TEUs) handled 176.51 million TEUs in 2012, at an growth rate of 8.1% compared with year 2011.

Million TEUs

• International Lines: Foreign trade container 105.83mTEUs were up 2.1% on the

corresponding period in 2011. Growth rate slowed down 3.4% due to the unbalanced development of foreign trade.

• Domestic Trade: Rapidly increased to 48.22mTEUs, up 16.5% on the corresponding

period in 2011.

• Domestic Trade is the key drivers of container throughput.

Composition of Main Ports Throughput in 2012

Domestic Trade Container Transportation BoomingGrowth rate were above 20% every year in last 10 years.

Shanghai port, located at the intersection of the famous golden waterway Yangtze River and the coastal transport corridor, is the biggest cargos distribution center and transshipment port in China.

2.Overview of Container of Shanghai Port

Port Coastline length (m) Berth Quay crane Yard(m2)

SCT 2,281 10 20 550,932

Waigaoqiao Phase I 900 3 11 238,014

Waigaoqiao Phase II &III 1,565 5 26 750,000

Waigaoqiao Phase IV 1,250 4 16 687,000

Waigaoqiao Phase V 1,100 4 16 687,000

Waigaoqiao Phase VI 950 3 11 619,000

Yangshan Phase I 1,600 5 18 860,000

Yangshan Phase II 1,400 4 16 528,000

Yangshan Phase III 2,800 7 26 1800,000

Total 123,896 45 160 6,719,946

Container port of Shanghai mainly distributed in three major Terminals: Yangshan, Waigaoqiao and Wusong, with a total 45 berths, 160 QCs, 463RTGs and 6,719,946 m2 yards.

0

5

10

15

20

25

30

35

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Container Throughputs of Shanghai Port, 1990-2012Million TEUs

32.53millionTEUs

The World No.1 Container Throughput

3. Technical Innovation of Shanghai Port

Increase the Container Logistics Transparency and Security

Energy-saving & Emission-reducing Reconstruction for RTGs

On Shore Power Supply for Container Vessel

On the way to world class port, Shanghai is reinforcing its technical

innovation as the core competence.

Automated Container Yard

Increase the Transparency and Security of Container Logistics

To increase the transparency and security in the whole container logistics, SIPG

invented the Container RFID Shipment Tag System. The system takes containers as

its tracking object. Based on the Internet, it uses technologies such as RFID,

wireless data communications to record the real-time security information of cargos,

and construct a network covering the world of container transportation. The system

allows the users learn about the right information of tagged container at any time and

any places. It makes all customers’ information access initiative, compared with

original passive one.

E-tags had been implemented in

logistics monitoring and more than ten

international container lines, including

China, U.S, Canada, Japan, Russia,

Malaysia, etc. Particularly, Malaysia

Customs has used the e-tags in all its

200 border checkpoints.

Based on vast practice, ISO 18186 :2011

Freight Containers – RFID Cargo

Shipment Tag System was published by

ISO on 1st Dec., 2011.

Research and Application on Monitoring System based on Satellite Communications

Internet

Satellite Communications

Satellite Gground Sstation+Web

Server

Ground CellularBase Station

Satellite Positioning

Information Input

Automated Container Yard

2006 ， the first automated container yard in China was completed in Waigaoqiao Phase II, Shanghai：OCR system of intelligent gateway auto-identifies the containers;Hoisting gear can identify various trucks；Central control system conducts the container truck by video and lndicator lamp;Gantry cranes finish container truck loading /unloading and stack automatically.

Automated container yard trial has well performed around one million

containers since March 15, 2006.

Energy-saving & emission-reducing reconstruction for RTGs

It is reported that ports comprise the single largest fixed source of air pollution. The power supply of RTG depends on its own diesel generator， which results in a low energy conversion efficiency and high diesel consumption, and brings huge pollution to the port city.

Since 2006, Shanghai Port has begun to use electricity for RTG energy supply.

Overhead electricity power sliding lines

Overhead power lines are laid on the same direction of RTG on the yard. RTG

works with electricity through an extra connecting device. Waigaoqiao Terminal of

Shanghai Port has adopted this system for years. Every year it may save 1.25 million

USD (10,902 tons of standard coal equivalent energy) and reduces 22,895 tons of CO2

emissions. There’s no more diesel engine exhaust and noise pollution.

Hybrid power system for RTGs

Hybrid power system for RTG is a good choice for Shanghai Yangshang Terminal because of its inconvenience of using mains electricity supply. The principle is to save the energy when crane offload container, then convert it into electricity, and being provided to RTG when it needs. The fully implement of hybrid electrical RTGs in Yangshan Terminal of Shanghai saves around 4 million USD (4,592 tons of standard coal equivalent energy), and reduces 9,645 tons of CO2 emissions every year.

Super-capacitor Room

On shore power supply for container vessel

It is recorded that 61,873 large-scale ships berthed Shanghai Port in year 2009.

Shanghai suffers 33,800 tons of harmful substances and 912,400 ton of CO2

emitted by such ships, due to vessel’s diesel generators.

2010 ， Shanghai started the R&D and implement of on shore power supply

system.

container liner berthing on Shanghai in year 2010

Main power supply module＋ Cable Reels Module

VariableVoltage

VariableFrequency

690V/50Hz10KV/50Hz 440V/60Hz

Put out

690V/60HzVariableVoltage

Movable Voltage-variable and Frequency-variable on shore power supply system

Put in

Successful Trial

March 2010, the system successfully provided on shore power to CSCL "new Fuzhou" at the Waigaoqiao Terminal Phase II.

The Waigaoqiao container terminal phase II is the first container terminal that can

provide on shore power supply. Distribution boxes for vessel are equipped on berth.

When the cable plug is plugged into the distribution box, electricity can be provided with

the frequency-variable mode of high-voltage 10kV, 50Hz to vessels (450V/6.6kV, 60Hz).

4. Development of Dry Port

A dry port ( inland port) is an inland intermodal terminal, offering services as the coastal ports, such is customs clearance, storage of goods, etc.

In China, dry port has become the focus of development in recent years.

Inland Port

Cargo Contracting

Port Service

Cargo Tracking

Coastal Portvirtual dry port

After years of development, dry port has enlarged its scale, perfected

the services and formed the following three modes.

For more Source of goods, coastal ports initiatively cooperate with inland cities to build dry ports: Ningbo Port set up more than ten dry ports near the city and Tianjin Port constructed 22 dry ports.;

To further develop the local economy: Nanchang built the dry port to transshipment cargo to Xiamen Port, Shenzhen Port and Ningbo Port by Sea-railway transportation；

According to self-development , coastal port enterprises construct dry ports: Harbin, Changchun and Shenyang have established dry ports based on Dalian Port.

5. Conclusion

Outlook of Chinese Container Transportation in 2013

Steadily increasing throughput， estimated 192 million TEUs， at an 8.5% annual growth.

Sustainable growth of domestic trade, at an estimated 16% annual growth.

Development Trends of Ports in China

Eco-friendly

Specialization , intellectualization and automation of Equipment

Informatization