China has begun safety inspections of companies handling dangerous goods in the vicinity of Tianjin Port, the world’s 10th busiest container port, as supply chains adjust to the changes wrought by deadly explosions in August.
The inspections could impede the movement of goods, while other knock-on effects from the explosion on the supply chain become felt in the port area.
State media reported that the Binhai New Area, the sub-provincial district in which the port is located, has set up a dedicated office with nearly 100 personnel to carry out inspections on enterprises in the area that transport dangerous goods. The personnel are drawn from the Public Security Bureau, Planning & Resources teams, Work Safety teams and Tianjin Port.
“The safety checks will continue until the end of the year and target enterprises that transport dangerous goods,” said an official from the Binhai New Area government. “Companies determined to be lacking conditions for safe production will be shut down and those found to be hazardous will be suspended from operation until improvement.”
Operations at the port have largely returned to normal since two huge explosions occurred at a warehouse where large amounts of hazardous chemicals were stored, including 772 tons of sodium cyanide. More than 160 people were killed in the blasts.
However, it is feared the blasts could result in supply chain problems for months to come. A new report into the impact of the disaster by supply chain technology firm Resilinc said shippers could expect delays arising from the government’s reaction to the incident and should expect additional scrutiny of cargo and stricter regulations and punishments.
Terminal operators are also under strain with additional administration work because the building that processed much of the port’s paperwork was severely damaged in the blasts, forcing them to deal directly with forwarders, haulers and other logistics players
Labor shortages are also a concern with many residents fleeing the area permanently as a result of fears of lasting environmental damage such as contamination of the water and air, Resilinc said.
Located on the Bohai Sea to the east of Tianjin’s main urban sprawl, the Binhai New Area was set up as a base for China’s industrial reform and innovation. It is one of China’s special economic zones and an incubator for special reforms in eight industrial sectors: aerospace, oil exploration and processing, food processing, modern metallurgy, marine chemicals, electrical information, automobile and equipment manufacturing and bio-pharmaceuticals.
It is home to more than 150 Fortune 500 companies, including EADS Airbus, Rockefeller and Motorola, and recorded GDP of $143 billion in 2014, a 15.5 percent year-over-year increase, against a 7.4 percent increase for China as whole.
Tianjin Port is the world’s fourth largest port by total cargo throughput and handles containers, metal ore, coal, steel, automobiles and grain.