4 September 2023 (Lloyd's List) - CHINA’S port city Dalian has announced a wide-ranging set of incentives aimed at growing its shipping and logistics sectors.
The government plan includes 18 measures offering subsidies and rewards for opening new international shipping routes, developing domestic coastal and feeder services and expanding container transshipment volumes with Dalian as a shipping hub.
Shipping lines opening new Asia-Europe container shipping services with a minimum of 40 annual port calls at Dalian will receive Yuan10m ($1.4m) per route. This rises to Yuan10m per year for no less than 45 calls in the second and third years of operation. Routes to Australia, New Zealand, India and Pakistan can also qualify for Yuan5m subject to the same conditions.
To develop domestic coastal shipping, new north-south domestic routes and qualifying foreign feeder services will get Yuan50,000 for a minimum of 50 annual port calls. This continues for the following two years. Container transshipment volumes through Dalian to other Bohai Rim ports will earn subsidies of Yuan90 per teu in year one, Yuan70 in year two, and Yuan60 in the third year.
The move comes as port throughput in the northern Chinese city has seen a strong rebound in 2022 following years of recessions, after the operation was taken over by state-owed conglomerate China Merchants Group. The port, which has been long envisaging a future of turning itself into a maritime centre, faces strong competition from its peers in the Bohai Rim region.
Other measures include incentives to boost its shipowning sector. Firms registering and establishing operations in Dalian can receive one-time rewards ranging from Yuan500,000 to Yuan3m based on total fleet capacity. Shipowners adding owned vessels over 5,000 dwt will receive between Yuan50-100 per dwt.
For existing Dalian-registered shipping companies with an annual turnover exceeding 1bn tonne-km, bonuses from Yuan300,000-Yuan2m are available based on year-on-year throughput growth. Sustained 10% growth over three years brings an additional Yuan1m reward.
Newly registered ship leasing and services companies meeting criteria can also earn subsidies on their assessed economic contributions to Dalian. Those satisfying the requirements of having Dalian as their headquarters will get Yuan8-16m upon landing. Activating idle port assets by shipping and logistics firms will be subsidized by up to Yuan3m or 3% of capital expenditure.
On the logistics side, firms entering China’s national Top 50 ranks will earn Yuan1m-2m. Large e-commerce distribution centres registering in Dalian and shipping over 80,000 orders quarterly can receive Yuan5 per parcel shipped outside the city, up to Yuan2m per quarter.
In marine insurance, subsidies equaling 3% of incremental premiums over 2020 levels will be provided.
To support capital market access, Dalian-based shipping firms pursuing domestic listings can receive up to Yuan4m through the initial public offering process. Overseas listings raising more than $100m are entitled to a Yuan4m reward.
