Excerpt from: China Supply Chain and Logistics Strategy
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| September 12, 2005 | | Suzhou Port Becoming Strategic Logistics Hub for Mid-Yangzte River Region |
Rapid Growth
- The volume of freight handled by the Suzhou Port reached 10.3 million metric tons in March 2005
- This is the first time the port exceeded 10 million tons in a single month
- Suzhou combined the ports of Zhangjiagang,Taicang,and Changshu into one integrated “Suzhou Port” in 2003.
- Container volume reached 66,078 in March 2005
- By 6/30/05 container total volume reached 340,000 containers (57.2 million tons)
- Between Jan and March total freight volume of the Suzhou Port increased by 44.45% (over 37 million tons, 222,708 containers) :
- Zhangjiagang Port: volume increased by 60.42% (over 27 million tons)
- Taicang Port: volume increased by 25.68% (over 4 million tons, 63,572 containers, a 210.8% increase!)
- Changshu Port: volume increased by 6.36%. (over 5 million tons)
According to recent data from the Suzhou City Transport Bureau, the Suzhou Port may actually reach the hundred million ton mark by October, 2 years earlier than originally planned.
Why is this? What are some of the drivers behind this growth? How will the supply chain strategies of foreign firms in China be affected?
Strategic Considerations
- China is working hard to make the Suzhou Port into an important resource base for Yangtze River Delta
- Utilization of the resources along the local harbor area is a priority
- The Suzhou port will become a strategic hub for the mid Yangtze river area
- Suzhou port is ideal for export processing for direct export due to its large land area and wide coast
- With the opening of the Shanghai deep water port and the subsequent moving of European lines from Waigaoqiao to Yangshan, the use of the Taicang port for European imports to Waigaoqiao will increase (since Taicang port is close to Waigaoqiao)
- Shanghai relies on the Suzhou port as a regional distribution station
- There are more options for shippers in the Yangtze Delta as competition among ports intensifies
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