Inland port aids western development

Although it is far from the coastal areas in the east, Xi'an has the potential to be a catalyst for development in the west thanks to its inland port.

"Shaanxi province will spare no effort to speed up the development of the Xi'an International Trade and Logistics Park," said Zhao Leji, Party chief and the top official of Shaanxi province. "The park will lead the whole province in the development of modern business and logistics and serve as an engine to promote the economic and social development of Shaanxi province."

Backed by supporting policies from the national and provincial government, the development of the logistics park is gaining momentum. Major breakthroughs will be made by the end of the year in terms of infrastructure construction and investment attraction, according to the administrative committee of the park.

Located in the northeastern section of Xi'an, construction started in 2008 on the park, which has a planned area of 44.6 square kilometers.

The city's convenient railway, highway and air transportation systems allows the park to improve the efficiency of logistics and reduce costs. And coordinated logistics services can help promote the clustering of industries and propel the development of a modern service industry.

As a strategic project, the park will be a focal point for development and help to open inland China to the outside world.

The park is expected to lead Xi'an and Shaanxi province in the effort to restructure industries, transform the mode of economic development and improve modern services.

Development of the park is supported by central government ministries and the Shaanxi provincial government. Zhao, for example, visited the park on four occasions and visited other countries, such as Singapore, to attract business and investment.

Zhao Zhengyong, governor of Shaanxi province, is working alongside Wei Minzhou, Party chief of Xi'an, and Dong Jun, mayor of Xi'an, to support the park's development. The three have helped to attract foreign development and solve a number of problems during the construction of the park.

By the end of 2015, the area is expected to become the largest inland international port, the largest commercial hub along the middle and upper reaches of the Yellow River and a new urban area in the east of the international metropolis of Xi'an.

Achievements

As an important part of China's plan to develop its western areas, the park has advanced quickly, and great progress has been made in the past four years.

The Xi'an Comprehensive Free Trade Zone, a key area of the park, was officially approved by the State Council last year as the first free trade zone in the northwest of China.

Approved by the National Development and Reform Commission, the park has been upgraded to a national-level development zone. The park has also been recognized as a national base for innovation of modern service industries.

Economic performance of the park has been improving dramatically over the first eight months of the year, according to a recent report of the Administrative Committee of Xi'an International Trade and Logistics Park.

As of the end of August, total fixed-asset investment for the park had reached 10.3 billion yuan ($1.66 billion), of which 4.2 billion yuan was made during the first eight months of this year, an increase of 78.14 percent over last year.

By the end of August, the park had utilized foreign capital totaling $46 million and 4 billion yuan worth of domestic capital.

Total foreign trade volume reached $519 million, of which $235 million was made between January and August, an increase of 56.2 percent, compared with last year.

As the first free trade zone in Northwest China, the Xi'an Comprehensive Free Trade Zone was approved last year, which greatly improved the function of the inland port.

Also, the railway container transport center in Xi'an was put into service. About 58,000 containers of goods were handled during the first eight months of the year at the center, which serves all of Shaanxi province and the surrounding provinces.

By taking advantage of advanced transportation infrastructure in Xi'an, the trade and logistics park has also established strategic relations with some major coastal ports, such as those in Shanghai, Tianjin and Lianyungang in Jiangsu province, and the border ports of Horgos and Alataw Pass in the Xinjiang Uygur autonomous region.

The park also issued favorable policies to attract big business and investments and has achieved good results.

Contracts have been signed involving a combined investment of 51 billion yuan in a total of 58 projects of various types, including eight foreign-invested projects with a total investment of $350 million. By the end of August, 16 projects had been completed and 39 projects, with a total investment of 65 billion yuan, were under construction.

To attract investment, the administrative committee of the park also organized more than 20 promotional activities in prosperous regions, such as the Yangtze River Delta area, and similar promotions were held in foreign countries, including Japan, Turkey, and the Netherlands.

As of the end of August, the number of newly registered enterprises had reached 245 in the area, and there were 1,482 self-employed businesses.

Now that a group of large international companies are opening businesses, a new industrial chain featuring modern commerce and logistics is taking shape in the area.

The construction of infrastructure has also advanced quickly in the trade and logistics park, and the outlook of the originally deserted area has been changing.

By the end of August, investment worth a total of 2.4 billion yuan had been poured into the park to develop infrastructure, including bridges, electricity and water treatment plants.

Fifteen roads have been completed, and six were under construction. Three parks have been finished, and green coverage has reached 2.35 million square meters.

To cut bureaucracy, the administrative committee of the park has worked to streamline government and improve services for the public. For instance, some officials now take charge of several departments to cut out the middlemen and increase efficiency.

Blueprint

Development of the Xi'an International Trade and Logistics Park will focus on infrastructure and improving services for business this year, according to the park's administrative committee.

High standards and quality are emphasized for infrastructure development to improve water, electricity, gas supply and landscaping. Work will focus on two major roads and two bridges in the park.

Development of residential areas will be sped up to meet living demands, including cultural centers, schools, hospitals and entertainment facilities.

Now that more major projects are under construction in the park, leaders have realized that the original planned area of the park is not enough, according to the park's management committee.

To make up for the shortage of land, the area of the park may be enlarged to 120 square kilometers, according to the committee.

With the development of the park and the emergence of new industries, a new urban area to the east of Xi'an will be formed in the next few years.

By the end of 2015, the park will become a major inland port in China that connects it to the whole world and serves to help Shaanxi province improve the foreign trade environment and become better integrated into the world economy.

Contact the writers at luhongyan@chinadaily.com.cn and wangxiaodong@chinadaily.com.cn

(China Daily 10/12/2012 page22)