Shanghai is taking its first steps toward establishing a pleasure craft marina where locals can moor yachts, cruisers and runabouts and enjoy the delights of sailing for fun.
At the 2014 China (Shanghai) International Boat Show last month the Shanghai Maritime Safety Administration announced plans to set up a pleasure boat zone on the Huangpu River.
The administration will loosen its restrictions on the activities of boats on the river and an area between Lupu Bridge and Nanpu Bridge will be set aside where pleasure boats can cruise.
For some it's a long-awaited move in the right direction. Ling Zujin, the general manager of Noahs Shanghai Yacht Club, got into the world of boating in 2007 after he had gone to a party on a boat. He was among 60 people on six boats cruising and speeding around Dianshan Lake to celebrate the Dragon Boat Festival.
"Seeing the boats racing around the lake and creating little waves in their wakes was really exciting for me," Ling said. But, until now there has been no chance of seeing pleasure boats racing around the Huangpu River.
Slow development
Although the first privately owned pleasure craft was registered in Shanghai in 2004, boating has developed more slowly here than in other coastal cities in the Chinese mainland. There are not as many privately owned craft here, either, compared to Sanya, Shenzhen and Xiamen. To date, there are only about 50 registered private pleasure boats in Shanghai, according to the local maritime authority, and most of these boats are moored along the Huangpu River and are for commercial use.
One thing that restricts the development of the pleasure boat business in Shanghai is the cost. Most of the boats moored along the Huangpu River cost millions of yuan. Some of the larger craft are worth more than 30 million yuan ($4.8 million) each and are way beyond the budgets of most people.
In developed countries, like the US, medium-sized and small boats are in the majority. In the US more than 90 percent of the boats owned by Americans are small boats - just some 6 percent are large luxury craft.
As well as the price tag, consumption taxes, customs taxes and value-added taxes on imported boats can add 43 percent of the total onto a bill. "Imported boats cost a lot more in China than they do in other countries because of the taxes," Ling said.
Added to the basic price are the costs of license fees, mooring fees and maintenance. Maintaining a boat can cost about 60,000 yuan a year but mooring it at the Shanghai Yacht Club on the Huangpu River will set a boat owner back between 380,000 and 480,000 yuan a year, depending on the size of the craft.
Even though this year's boat show offered a few craft for about 60,000 yuan the annual expenses still preclude most people from setting sail in Shanghai.
"Boat owners moor their boats in Shanghai usually because this is where their businesses are and they use their boats for parties, networking and social activities. But most only use their boats once a month," Ling said.
Lack of infrastructure
The lack of infrastructure also hinders the rapid development of the pleasure boating business in Shanghai. Here, at present, the 50 private pleasure craft are scattered around eight piers and there are few fuelling areas. As well, after-sales service for imported boats is not always reliable and is unregulated at present.
As a major shipping channel, Shanghai's waterways are not particularly suitable for pleasure craft. The busiest section on the Huangpu River lies between Lupu Bridge and Yangpu Bridge, but other boats, barges, ferries and freighters share the same section.
Whenever there is a high tide, more than 1,000 merchant ships will move through the Lujiazui section of the river and there is a constant danger of collisions with freighters, barges and ferries. Boat owners or operators have to apply in advance if they want to take a boat out during these periods and they are forbidden from sailing in peak hours.
"The Huangpu's big function is shipping but that's problematic with pleasure craft, so first we ensure the shipping runs smoothly and then we have to record all pleasure craft activities," noted Huang Yongchang, a press officer with the Shanghai Maritime Safety Administration.
A more affordable way to enjoy life on the water in Shanghai is to join a boat club. There are eight boat clubs offering members boats which they can use for day trips, parties or go fishing.
"On the Huangpu River, most of the pleasure craft are commercial boats which are rented out for parties. The night views of the Huangpu River are very popular and people want to show these to their friends and business clients from out of town," Ling said.
The boat clubs also offer one- to three-day trips to nearby attractions like Shengsi county and Putuo Mountain in Zhejiang Province. The Shanghai Yacht Club offers boats with a full complement of crew and service staff on board. Most boats that are rented come with a skipper, a crewman and a waiter.
The club has nine berths in its marina and two boats are available for charter. The club's boats are each worth between 3 million and 10 million yuan.
Lifestyle choice
"Owning a boat is a lifestyle choice for some Westerners but, here in Shanghai, most of the boats are only for commercial use. The people here with money are not interested in boats or yachting. Only people who love sailing want to own their own boats and they moor their boats in coastal cities like Sanya, Shenzhen and Xiamen," Ling said.
Club members who own boats can rent berths from their clubs, which also offer services like cleaning and maintenance.
It costs 188,000 yuan for a 10-year membership card with an annual 12,000 fee on top of that. Members can then use the club's boats for free. "It costs 300,000 yuan for 10 years' free use of the boats. In reality members only use the boats about 10 times a year. They don't have a lot of time for parties and socializing. The Shanghai Yacht Club now has about 100 members, a relatively small number," Ling said.
Although the boat clubs are a more economical way of getting into boating in Shanghai, they, too, have restrictions.
"To get permission to establish a marina first is very difficult. And when there are many commercial vessels on the river the pleasure boats have to wait their turn. In rush hours, which can last for between 30 minutes and an hour, pleasure craft are not allowed on the river at all and this is a downside for business.
"As well their speeds are limited to between 4 knots (7.4 kilometers an hour) and 8 knots, just a bit faster than the ferries which move at about 5 knots, even though some of these craft can do 30 knots. Because of the speed limits a trip to the mouth of the Wusong River, where the Huangpu River meets the Yangtze River, takes about two and a half hours and it takes three and a half hours to go to Chongming Island," Ling said.
"Along the Huangpu River, only the section by Lujiazui and the section between the Nanpu and Yangpu bridges have an outstanding view at night. There's not much to see apart from these spots so a night trip on the river is not always that interesting."
Other sections to open
However the local maritime authority this year announced it would open other sections of the river to pleasure craft for three days every month. This and the establishment of the pleasure boat zone on the Huangpu River are expected to boost the pleasure boat business.
Shanghai is also speeding up construction of the Shanghai International Shipping Center and the Shanghai Port International Cruise Terminal in Hongkou district which will offer another 200 berths for small craft.
The 2014 China Yacht Report released by the Fortune Character Institute, a luxury industry research and consulting company, shows that China's boat industry will maintain an annual growth of at least 30 percent from this year, and the market will exceed 15 billion yuan in the next five years. The report suggests that the proportion of commercial luxury craft will decrease as the number of privately owned small craft increases.
A booming pleasure boat industry will help boost a number of related industries and more qualified operators will be needed. There are about 10 maritime training schools in Shanghai and it costs about 20,000 yuan and takes two and a half months to qualify as a licenced operator of these pleasure craft. More than 300 locals have already passed their operator's certificate.