Yangshan Deep Water Port, part of the Port of Shanghai, has issued its first licenses for the refueling of bonded fuel, where imported fuel is stored in a segregated facility and used to refuel ships headed for overseas destinations, to two firms based in a nearby bonded zone. The world’s biggest deep water port plans to build an industrial cluster of bonded ship supplies worth CNY100 billion (USD14.6 billion) by 2025, reports Yicai.
About the bonded area
PetroChina SIPG Energy, a joint venture between oil major PetroChina and Port of Shanghai operator Shanghai International Port Group, as well as Shanghai Fuyuan Fuel Oil were the first to secure such permits, according to a plan announced at a press conference held in Lingang New Area, part of the city’s free trade zone, yesterday.
The Yangshan Special Comprehensive Bonded Area, which is located close to the port and Pudong International Airport, will form an industrial cluster of bonded vessel supplies worth CNY100 billion (USD14.6 billion) in the next three years, according to the plan. This will include 3 million tons of bonded fuels, 5 million cubic meters of bonded liquified natural gas and other bonded materials worth CNY10 billion (USD1.5 billion).
Shanghai Fuyuan, which is based in the Yangshan Bonded Area, plans to store 1 million tons of bonded fuels a year, generating CNY3.5 billion (USD512.1 million) in yearly sales, Yicai Global learnt from the company, which is also a unit of Beijing-based PetroChina.
Three other companies within the bonded area are now applying for licenses for the refueling of bonded fuels too. The trio are affiliates under steel giant China Baowu Steel Group, logistics service provider Xiangyu Group and petroleum futures-focused investment company Shanghai Xingaoying Energy Technology, according to the press conference.
Yangshan Port was the first port in China to be permitted to start bunkering bonded LNG in March and as of Aug. 15 had accepted 11 shipments of bonded LNG, corresponding to a refueling volume of 63,000 cubic meters, according to the Shanghai Municipal Commission of Commerce.
Last year, the Port of Shanghai remained the world’s busiest container port for the 12th straight year with container throughput of 47 million twenty-foot equivalent units. Yangshan Port accounted for nearly half of this. The container throughput of Yangshan Port will be expanded to over 26 million TEUs per year by 2025, according to the plan.
Did you subscribe to our daily Newsletter?
It’s Free! Click here to Subscribe
Source: Yicai
