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“We should devote ourselves to constructing ports in Beibu Gulf and to developing maritime economy. We often say that you’d better build roads first to become rich， but in the coastal areas you have to build ports first，” said Chinese President Xi Jinping on a facts-finding visit to Beihai， Guangxi， China on April 19， 2017. His statement not only gives prominence to the advantages of Beibu Gulf Economic Zone （BGEZ） in marine resources but also indicates the development orientation for the zone and for Guangxi in pursuit of the 21st Century Maritime Silk Road Initiative.
In terms of geographical and regional advantages， ports in BGEZ are backed by southwest China， oriented towards Southeast Asia and adjacent to Guangdong， Hong Kong and Macao in the east of China， constituting the most convenient seaborne gateway to ASEAN in the zone and in China. As the Belt and Road construction advances， a layout integrating modern port group， port-centered industry economic belt and international industrial-capacity cooperation demonstration area has taken shape， thus better promoting the development of local maritime economy.
Blue driving force
In an interview with the 21st Century Business Herald， Mr. Chen Yao， researcher of Chinese Academy of Social Sciences and Secretary-General of CARE， holds that people in BGEZ should seek their fortune by utilizing local marine resources. He also suggests that it is advisable for authorities concerned to set up a port-centered industrial layout aimed at manufacturing large-scale marine equipment， transforming deep-sea biotechnologies， exploiting and utilizing marine resources and so on.
Take marine-resources utilization and conservation for example. In order to comprehensively facilitate the sustainable development of maritime economy， equal emphasis should be placed on the exploitation of marine resources， on the change from marine exploitation to circular utilization of resources involved， on the construction of a blue ecological shelter zone， and on the upgrading and transformation of marine industry structure. “We should give particular attention to ecological reservation and to the balance of exploitation and protection when developing port-centered industry. Therefore， it is crucial to explore a more scientific， ecology-oriented development pattern，” said Mr. Chen.
With a total sea area of nearly 130，000 square meters and the abundance of marine resources， BGEZ， as a significant window for Guangxi’s opening-up to the outside world， has multiple advantages like geographical location in the development of maritime economy under the Belt and Road Initiative. As the Belt and Road construction forges ahead， based on ports and industries in BGEZ， pursuing maritime economy with Guangxi’s characteristics not only satisfies the demands of a new round of opening-up and development but also accords with the inevitable tendency of the Belt and Road Initiative.
Internal and external development of ports
While maritime economy was introduced lately， it has been seen as one of development directions of BGEZ in recent years. To increase maritime connectivity with ASEAN countries， for instance， BGEZ focuses on strengthening the links among ports in the zone and on the relationship with their foreign counterparts.
Guangxi Beibu Gulf Port （GBGP） which consists of three good natural harbors — Qinzhou Port， Fangchenggang Port and Beihai Port possesses large-scale， deep-water and specialized docks， so it is superior in scale， abundant in marine resources and unique in regional location. Over the years， a series of landmark projects have been completed successively in GBGP： Fangchenggang Port built 200，000-DWT docks， Qinzhou Port 300，000-DWT docks， and Beihai Tieshangang Port No. 1-4 berths. In addition， China-ASEAN Port Cities Cooperation Network is being created according to Beibu Gulf Cities Layout Development Planning. All this has made the local ports’ infrastructure and handling capacity elevated to a higher level. As of now， GBGP has constructed 260 productive berths and 83 berths above 10，000 DWTs. In 2016， when faced with the continuous sluggish of shipping industry and the slower growth of nation-wide ports with the handling capacity above 10，000，000-15，000，000 DWTs， GBGP’s handling capacity registered a steady growth rate， and it amounted to 139.6 million DWTs — representing a year-on-year increase of 9.02%.
In the meantime， in pursuing the Belt and Road Initiative， GBGP is energetically expanding cooperation with its foreign counterparts and enhancing connectivity with countries along the Belt and Road routes， particularly ASEAN countries. For example， after becoming a shareholder of Malaysia’s Kuantan Port， Beibu Gulf Port Group invested in the construction of Brunei’s Mora Port in February 2017， achieving the connectivity with ASEAN’s ports. Moreover， GBGP is currently taking the initiative in building the Chongqing-Guangxi-Singapore Southward Passageway， which is aimed at creating more convenient conditions for maritime economy.
Now GBGP has forged marine-transportation ties with 47 ports in ASEAN countries and opened 44 sea routes of domestic and foreign trade. Its shipping services are accessible to over 200 ports in more than 100 countries and regions across the world， covering almost all the main ports in Southeast Asia as well as Northeast Asia. Industrial upgrading and optimization
“As the most convenient access to the sea in southwest China， GBGP has evolved into a key industrial base in the region from an ‘industry desert’ which was basically lack of large-scale projects ten years ago. Now it is gradually setting up a modern industrial system featuring the predominant industries such as petrochemicals， electric information， new materials of metallurgy， grain & cooking-oil food， papermaking and marine industry，” said Wei Ran， executive vice-director of Guangxi Beibu Gulf Economic Zone & Cooperation with ASEAN Office of Guangxi Zhuang Autonomous Region. Currently， maritime economy is growing stronger in the coastal areas of western China， which is the fact that BGEZ has been committed to developing port-centered industries and to making maritime economy quality- and benefit-oriented， and the fact that the Belt and Road construction has brought about new development opportunities to the zone.
“The benefits brought by the port-centered industry layout are to maximally reduce costs by shortening transportation routes and forming large-volume import and export， and Guangxi’s regional advantages are conducive to the rapid distribution of cargoes，” said Mr. Chen Wanling， professor of Guangdong University of Foreign Studies， in an interview with the 21st Century Business Herald. By virtue of BGEZ’s exceptional regional advantages， China-made port-centered industrial products and marine equipment can be more promptly accessible to countries along the Belt and Road routes.
Given this， as the Belt and Road construction progresses， giving more priority to modern marine industry — including port-centered industry， marine equipment manufacturing industry and ocean fishing industry — can consolidate the cooperation between China and countries like ASEAN states along the Belt and Road routes — not only an important channel for Guangxi to create a blue driving force in the region but also an optimal choice for BGEZ to foster maritime economy.
At present， BGEZ has conducted an exploitation of maritime economy： Beihai introduced some large-scale projects， including Stora Enso Beihai Mill （a forest-paper integration project） and Sinopec refining project， with three 100-billion-yuan industrial projects （namely， electric information industry， petrochemical industry and port-centered new materials industry） completed； Qinzhou four large-scale port-centered industrial projects （namely， Sinopec， Jinguilin Pulp-paper Integrated Project， SDIC Qinzhou Electric Power Co.， Ltd.， as well as CSIC Large-scale Ship Repairing and Building Base）， forming a 10-billion-yuan industry framework involving petrochemicals， equipment manufacturing and energy resources； and Fangchenggang CGN’s nuclear power project and Wuhan Iron and Steel Group’s 100-billion-yuan steel project.
Furthermore， to further reinforce BGEZ’s competitive strength in maritime economy， eight aspects of industrial layout have been figured out based on different regional advantages and existing conditions of six cities in the zone： two 300-billion-yuan industrial projects （electric information and metallurgy intensive-processing）， two 200-billion-yuan industrial projects （petrochemical refining， and grain & oil food processing）， and four 100-billion-yuan industrial projects （equipment manufacturing， energy resources， bio-pharmaceutical and health， as well as light industry）.
In terms of geographical and regional advantages， ports in BGEZ are backed by southwest China， oriented towards Southeast Asia and adjacent to Guangdong， Hong Kong and Macao in the east of China， constituting the most convenient seaborne gateway to ASEAN in the zone and in China. As the Belt and Road construction advances， a layout integrating modern port group， port-centered industry economic belt and international industrial-capacity cooperation demonstration area has taken shape， thus better promoting the development of local maritime economy.
Blue driving force
In an interview with the 21st Century Business Herald， Mr. Chen Yao， researcher of Chinese Academy of Social Sciences and Secretary-General of CARE， holds that people in BGEZ should seek their fortune by utilizing local marine resources. He also suggests that it is advisable for authorities concerned to set up a port-centered industrial layout aimed at manufacturing large-scale marine equipment， transforming deep-sea biotechnologies， exploiting and utilizing marine resources and so on.
Take marine-resources utilization and conservation for example. In order to comprehensively facilitate the sustainable development of maritime economy， equal emphasis should be placed on the exploitation of marine resources， on the change from marine exploitation to circular utilization of resources involved， on the construction of a blue ecological shelter zone， and on the upgrading and transformation of marine industry structure. “We should give particular attention to ecological reservation and to the balance of exploitation and protection when developing port-centered industry. Therefore， it is crucial to explore a more scientific， ecology-oriented development pattern，” said Mr. Chen.
With a total sea area of nearly 130，000 square meters and the abundance of marine resources， BGEZ， as a significant window for Guangxi’s opening-up to the outside world， has multiple advantages like geographical location in the development of maritime economy under the Belt and Road Initiative. As the Belt and Road construction forges ahead， based on ports and industries in BGEZ， pursuing maritime economy with Guangxi’s characteristics not only satisfies the demands of a new round of opening-up and development but also accords with the inevitable tendency of the Belt and Road Initiative.
Internal and external development of ports
While maritime economy was introduced lately， it has been seen as one of development directions of BGEZ in recent years. To increase maritime connectivity with ASEAN countries， for instance， BGEZ focuses on strengthening the links among ports in the zone and on the relationship with their foreign counterparts.
Guangxi Beibu Gulf Port （GBGP） which consists of three good natural harbors — Qinzhou Port， Fangchenggang Port and Beihai Port possesses large-scale， deep-water and specialized docks， so it is superior in scale， abundant in marine resources and unique in regional location. Over the years， a series of landmark projects have been completed successively in GBGP： Fangchenggang Port built 200，000-DWT docks， Qinzhou Port 300，000-DWT docks， and Beihai Tieshangang Port No. 1-4 berths. In addition， China-ASEAN Port Cities Cooperation Network is being created according to Beibu Gulf Cities Layout Development Planning. All this has made the local ports’ infrastructure and handling capacity elevated to a higher level. As of now， GBGP has constructed 260 productive berths and 83 berths above 10，000 DWTs. In 2016， when faced with the continuous sluggish of shipping industry and the slower growth of nation-wide ports with the handling capacity above 10，000，000-15，000，000 DWTs， GBGP’s handling capacity registered a steady growth rate， and it amounted to 139.6 million DWTs — representing a year-on-year increase of 9.02%.
In the meantime， in pursuing the Belt and Road Initiative， GBGP is energetically expanding cooperation with its foreign counterparts and enhancing connectivity with countries along the Belt and Road routes， particularly ASEAN countries. For example， after becoming a shareholder of Malaysia’s Kuantan Port， Beibu Gulf Port Group invested in the construction of Brunei’s Mora Port in February 2017， achieving the connectivity with ASEAN’s ports. Moreover， GBGP is currently taking the initiative in building the Chongqing-Guangxi-Singapore Southward Passageway， which is aimed at creating more convenient conditions for maritime economy.
Now GBGP has forged marine-transportation ties with 47 ports in ASEAN countries and opened 44 sea routes of domestic and foreign trade. Its shipping services are accessible to over 200 ports in more than 100 countries and regions across the world， covering almost all the main ports in Southeast Asia as well as Northeast Asia. Industrial upgrading and optimization
“As the most convenient access to the sea in southwest China， GBGP has evolved into a key industrial base in the region from an ‘industry desert’ which was basically lack of large-scale projects ten years ago. Now it is gradually setting up a modern industrial system featuring the predominant industries such as petrochemicals， electric information， new materials of metallurgy， grain & cooking-oil food， papermaking and marine industry，” said Wei Ran， executive vice-director of Guangxi Beibu Gulf Economic Zone & Cooperation with ASEAN Office of Guangxi Zhuang Autonomous Region. Currently， maritime economy is growing stronger in the coastal areas of western China， which is the fact that BGEZ has been committed to developing port-centered industries and to making maritime economy quality- and benefit-oriented， and the fact that the Belt and Road construction has brought about new development opportunities to the zone.
“The benefits brought by the port-centered industry layout are to maximally reduce costs by shortening transportation routes and forming large-volume import and export， and Guangxi’s regional advantages are conducive to the rapid distribution of cargoes，” said Mr. Chen Wanling， professor of Guangdong University of Foreign Studies， in an interview with the 21st Century Business Herald. By virtue of BGEZ’s exceptional regional advantages， China-made port-centered industrial products and marine equipment can be more promptly accessible to countries along the Belt and Road routes.
Given this， as the Belt and Road construction progresses， giving more priority to modern marine industry — including port-centered industry， marine equipment manufacturing industry and ocean fishing industry — can consolidate the cooperation between China and countries like ASEAN states along the Belt and Road routes — not only an important channel for Guangxi to create a blue driving force in the region but also an optimal choice for BGEZ to foster maritime economy.
At present， BGEZ has conducted an exploitation of maritime economy： Beihai introduced some large-scale projects， including Stora Enso Beihai Mill （a forest-paper integration project） and Sinopec refining project， with three 100-billion-yuan industrial projects （namely， electric information industry， petrochemical industry and port-centered new materials industry） completed； Qinzhou four large-scale port-centered industrial projects （namely， Sinopec， Jinguilin Pulp-paper Integrated Project， SDIC Qinzhou Electric Power Co.， Ltd.， as well as CSIC Large-scale Ship Repairing and Building Base）， forming a 10-billion-yuan industry framework involving petrochemicals， equipment manufacturing and energy resources； and Fangchenggang CGN’s nuclear power project and Wuhan Iron and Steel Group’s 100-billion-yuan steel project.
Furthermore， to further reinforce BGEZ’s competitive strength in maritime economy， eight aspects of industrial layout have been figured out based on different regional advantages and existing conditions of six cities in the zone： two 300-billion-yuan industrial projects （electric information and metallurgy intensive-processing）， two 200-billion-yuan industrial projects （petrochemical refining， and grain & oil food processing）， and four 100-billion-yuan industrial projects （equipment manufacturing， energy resources， bio-pharmaceutical and health， as well as light industry）.