China State Council unveils plan to make shipping development more central

2014-09-10

CHINA's State Council, the country's chief administrative body, has presented a plan to make maritime shipping development a central national priority for the first time.

In its "Healthy Development of the Shipping Industry" white paper the State Council listed targets to work for by 2020.

"This is the first time we are detailing the strategic targets and main missions for shipping development since the foundation of the People's Republic of China," said Vice Transport Minister He Jianzhong.

"Shipping is reeling," he said. "Global market conditions are severe. This paper will have a guiding effect for boosting confidence, enhancing reforms of shipping firms and prompting companies to upgrade themselves."

Seven targets are listed: Structural reforms, upgrading enterprises, pressing for a modern shipping service sector, reforming state-owned carriers, improving competiveness in international markets as well as environmental development.

The white paper notes that the Chinese-owned fleet stands at 142 million dead weight tons or eight per cent of the world total. Eight of the world's 10 biggest ports by cargo throughput are Chinese. So are seven of the top 10 container ports.

But little of a concrete nature appeared in the document. Overall, analysts reckoned much will depend on whether Beijing will introduce new policies, reported Lloyd's List.

"What we are seeing is a general, vague statement that discusses some targets in a framework and some directions," said Changjiang Securities analyst Han Yichao said.

The State Council said Chinese shippers should enhance relationships with China's carriers, and that carriers be owned by the state and private capital simultaneously.

Some analysts said Beijing could require state-owned shippers to reserve more cargo for Chinese carriers, but others saw little benefit in this.

The State Council paper said Chinese firms should stress high technology while the government provides financial support through tax breaks.

The State Council is chaired by the Premier and includes the heads of each governmental department and agency. Currently, the council has 35 members.

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