Market savvy to survive downturn

By Jia Jingqi (China Daily)
Updated: 2009-09-12 13:58

With the current financial downturn continuing to plague both developed and emerging markets, easy and rapid access to business information - a vital asset in judging market trends - has never been more essential, according to a senior Dalian Port executive.

"That's why we came to the Summer Davos," said Jiang Luning, general manager of the Dalian Port Company Ltd, speaking exclusively to China Daily at yesterday's session of the Summer Davos in Dalian.

Jiang believes the event will provide delegates with the latest data on maintaining competitiveness and accessing global markets.

One of China's major oil and container terminal operations, Dalian Port has seen its foreign trade container business suffer in the wake of decreasing international trade volumes over the last 12 months.

The central government's stimulus policies have now proved effective and started to drive domestic demand and growth, resulting in a major upturn in the company's domestic trade container business.

As a result of the downturn, Dalian Port's management team have invested heavily in seeking to sustain the facility's growth.

In terms of market development, the company has sought to attract new customers and find new business opportunities, while strengthening its cooperation with its current strategic partners. In terms of financial management, the team has also cut operating costs and slashed all unnecessary expenditure. As a result, the port has seen its revenues from oil terminals, tug boats, and automobile freight services grow significantly in the first half of this year.

With signs of renewed growth in China's economy, the company's container terminal business, badly hit by fluctuations in the import and export trade, is expected to recover in the near future.

The uncertain economic situation has not deterred the port from committing to its most ambitious goal to date - taking a leading role in the recently unveiled plan to establish Dalian as an international shipping center for the whole of Northeast Asia. As part of the plan, the port's freight throughput will grow enormously in 2010 - rising to 80 million tons of petroleum, 20 million tons of ore and 10 million containers.

The port has also implemented a number of projects aimed at improving its facilities. Chief among these projects is the construction of a new 300,000-DWT (dead-weight tonnage) crude oil terminal, a joint venture with PetroChina. Work began on the high-profile development on February 18. Upon completion at the end of this year, it will have a throughput capacity of 77 million tons.

In addition to the port's advantageous geographic location, the port's management hopes its combination of in-depth experience and an innovative business approach will see it maintains a competitive edge over neighboring freight-handling operations.

It is also seeking to promote its development through establishing partnerships with a number of domestic and international ports.