Building a World-Class Ocean Port Cluster

Summary

During his inspection tour of Shandong in May 2024, President Xi Jinping stressed the importance of developing the marine economy and building a world-class ocean port cluster. As the first provincial demonstration zone for a transport powerhouse jointly established by the ministry and the province, Shandong has, since the founding of Shandong Port Group in 2019, integrated Qingdao Port, Rizhao Port, Yantai Port, Weihai Port, Binzhou Port, Dongying Port and Weifang Port into a world-class port cluster structured as 'three major and four auxiliary ports'. The group has adopted a management framework of 'group headquarters + specialised subsidiaries + port companies', establishing four port groups and 12 specialised business groups, and forming three major business tracks: port operations, integrated supply chain services and port-adjacent industries.

In 2025, Shandong Port Group handled more than 1.9 billion tonnes of cargo, ranking first globally, and more than 48 million TEUs of containers, ranking second globally. The integrated reform has facilitated collaboration across multiple sectors: in 2025, supply-chain-related businesses contributed over 20 million tonnes of new port throughput and drove more than 30 million tonnes of new business in integrated supply chain services. In terms of smart and green transformation, the group has built the country's first fully domestically produced and fully automated container terminal, with the automation rate of specialised berths exceeding 80 percent.

During the 14th Five-Year Plan period, 16 terminals were awarded the title of green port. Regarding the international logistics network, the total number of container routes has exceeded 370, reaching more than 180 countries and regions and over 700 ports worldwide. The group has established 57 inland ports across the country and opened 109 sea-rail intermodal train routes.

In 2025, the volume of sea-rail intermodal containers exceeded 4.6 million TEUs, ranking first among coastal ports. Shandong Port Group is also transforming into an integrated supply chain service provider, serving 13 flagship industrial chains. Its 'Luhaitong' platform has more than 500,000 users, with nearly 200 million transactions, reducing average logistics costs by over 15 percent.

The group has innovated a financial product called 'separate guarantee letters', which has served 12 foreign trade clients, with a cumulative guarantee amount of 280 million yuan. Yu Yongsheng, Party Secretary of the Shandong Provincial Department of Transport, said that Shandong will make every effort to build a world-class ocean port cluster and accelerate the construction of world-class port infrastructure. Gao Liping, Party Secretary and Chairman of Shandong Port Group, said the group will accelerate its development into a world-class integrated supply chain service provider, helping 'Made in China' reduce costs, improve efficiency and expand overseas.

Commentary

The integrated consolidation of Shandong's port cluster has propelled its cargo throughput to the top globally and container throughput to second place, a development that is reshaping the shipping landscape in Asia and beyond. For small and medium-sized enterprises in New Zealand, this port cluster is not just a 'Chinese gateway' but a supply chain node connecting to China's interior and the Asia-Pacific market. Around 90 percent of global trade is carried by sea, and China has been New Zealand's largest trading partner for goods for many consecutive years.

Northern Chinese ports serve as primary entry points for New Zealand commodities such as dairy products, meat and timber. Through unified scheduling and infrastructure upgrades, Shandong Port Group has achieved an automation rate of over 80 percent for specialised berths, handled more than 4.6 million TEUs of sea-rail intermodal containers, and established 57 inland ports, enabling imported goods to be distributed to central and western cities at lower cost and greater speed. Its 'Luhaitong' platform has reduced average logistics costs by more than 15 percent, which translates into tangible margin improvements for small exporters with thin profits.

In addition, innovative financial products such as 'separate guarantee letters' leverage port data to enhance corporate credit, allowing small and medium-sized companies without collateral to quickly obtain foreign-related guarantees and lowering the capital threshold for entering the Chinese market. However, from another perspective, the port cluster's transformation into an integrated supply chain service provider also means a further concentration of bargaining power. As the port group expands its own trade, finance, logistics and other full-chain services, traditional freight forwarders and smaller logistics enterprises may face pressure.

New Zealand exporters could lose flexibility if they over-rely on a single port channel or in contract negotiations. Moreover, the proliferation of routes to Southeast Asia and the continued decline in trade costs between China and ASEAN may indirectly affect the competitive landscape for some of New Zealand's primary products in China, especially dairy and fruit, which face challenges from similar ASEAN products. It is worth noting that the commodity vehicle logistics base under Shandong Port Group is already connected to major automobile ports worldwide, signalling accelerated consolidation of China's vehicle export and parts logistics.

If China expands exports of related electromechanical products to New Zealand, it could alter the bilateral trade structure. Shandong Port's supply-chain-related businesses generated over 50 million tonnes of additional throughput in 2025. This 'port plus industry' model will attract more port-adjacent processing and trade agglomeration.

New Zealand SMEs could consider leveraging its inland port network to test second-tier city markets using a 'front port, back park' model rather than being confined to traditional gateways such as Shanghai and Guangzhou. For exporters of perishable goods in particular, Qingdao Port's cold chain logistics and dense container routes (with more than 370 container routes) can effectively shorten transit times. Whether to proactively connect with the service platform of this super port cluster or to diversify risks by choosing alternative ports is now a practical question that every company focused on the Chinese market needs to weigh.

Keywords: Shandong Port, world-class ocean port cluster, integrated reform, cargo throughput, container throughput, smart green port, sea-rail intermodal transport, integrated supply chain services

Source: Xinhua Net