Greater Bay Area:

The Greater Bay Area, also known under its abbreviation “GBA” is an area comprising of a few major Cities, like Guangzhou, Shenzhen and Hong Kong, 9 municipalities, The Pearl River Delta and a vast developing infrastructure within the area.

While GBA has 4.5 pct of Chinese population, it produces about 9.5 pct of China’s GBP and is responsible for more than 16 pct of foreign investment and almost a quarter of China’s foreign trade.

In this area we see different direction of development. Where Hong Kong used to be not only the financial center, but also the trade and logistics center at the end of last Century, subsequently we then saw the remarkable growth and development of Shenzhen as a special economic zone in China. Shenzhen initially focusing on Joint Ventures and production has now grown in a Tier 1 City with 15 million inhabitants, developing more into High tech, Fintech and services industries.

Transformation in the GBA:
At the same time, we see a transformation of production and the logistics activities coming with it

from East Pearl River Delta to the more Western areas of the Pearl river Delta and to the inland provinces of South West China, even up to Sichuan province.

From a consumer and service industry development Guangzhou and Shenzhen are transforming their local economies as well. With large amounts of consumers around the Pearl River Delta Imports of goods, especially Frozen and Fresh foodstuffs and Beverages and Branded Consumer goods Have grown consistently with double digit figures over the last few years.

A major factor helping the GBA to grow consistently in all directions is the developing infrastructure to connect GBA with the Inland Provinces, but also importantly to make the infrastructural connections within GBA, so that it can truly develop as a Metropole, a new Bay Area, like some of the famous Bay areas that we see in other parts of the world, like New York, Tokyo or San Francisco.

Within the GBA all major cities are now connected via high speed high frequency trains, making it possible to travel within the GBA from every major city to another in less than 1 hour.

Also the Hong Kong Macau bridge-tunnel connection is a reminder of the GBA masterplan.

GBA Port Development:
If we look closer to the picture from a Port Development perspective. Originally Hong Kong was the major deep sea port of the Pearl River Delta. Huangpu was for a while in the early nineties also direct port of call in the major trades, although quite far up the Pearl River. But in most trades the size of the vessels were not surpassing 2000 TEU then, making Huangpu an ideal port for especially the North South trades and Intra Asia.

In the late nineties we see the major growth of the Shenzhen ports. More and more China business can ship directly from the mainland onto the mother vessel. Also Shenzhen draft is deep enough to accommodate the vessels in the large East-West trades.

Since the last 10 years we see the seize of the vessels in the East-West trades, but also in the North-South Trades further increasing. With the increase of the vessel size and the transformation of export especially towards the west side of the Pearl River Delta and the inland provinces we see the volumes of the Shenzhen ports starting to stagnate, Hong Kong volumes are falling, while the increase in volume now shifts towards the Western Pearl River Delta.

At the same time with the growth of imports and distribution function more space is required for warehousing and preferable in Free Port or Bonded areas.

Port of Nansha:
In the West Pearl River Delta Port of Nansha, as the only deep seaport on the west bank has become the fastest growing port of South China in the last few years. The growth is as well export as import driven.

Where it originally was the major port for the Africa trades in South China it has in the last few years established direct calls in the Transpacific trade and the Europe trade, North Europe and Mediterranean.

It also becomes more and more an important hub in the Intra Asia trades, especially with South East Asia, Taiwan, South Korea and Japan.

And with its value-added hub distribution function for major petro-chemical volumes the frequency with the Middle East trades has also increased.

Coming back to the major infrastructural developments in GBA, Port of Nansha has a few big projects to be delivered in the coming year, including a direct Rail Link with the China rail network, making Port of Nansha the only deep-sea port in the Pearl River Delta with an on-dock terminal rail connection. It’s connecting cargo rail link of 88 km at designated speed of 120 km/h will make connection with Guiyang -Guangzhou, Nanning-Guangzhou and Liuzhou-Zhaoqing railways and being an integral part of the Belt and Road initiative.

Port of Nansha infrastructure development:
But first with its channel-widening project it has finished this August 2020 its core infrastructure to make the port now ready to have 2 vessels of so called Mega vessel size able to pass each other to and from the Port of Nansha.

The widening project, serving as a “No.1 Project” of making Guangzhou port an international shipping hub, will put an end to the one-way navigation for large container ships between the Guishan anchorage and Port of Nansha area.

“Guangzhou Port will continue to improve its services in accordance with the deployment of Guangzhou International Shipping Hub construction. We’ll make full use of the new advantages of newly-built channels to improve port service efficiency, reduce integrated logistics costs and strengthen integrated transportation hub functions as well as jointly build coastal connections with customers” said Mr Li, Chairman of the Board of Guangzhou Port Group.

Cold Chain development:
Also, with the growing fresh and frozen goods development Port of Nansha will have the largest temperature controlled warehouse delivered in Q1 2021. This warehouse will have construction space of 150,000 + sqm and is also connected with the terminal and in the Free Trade Zone.

General warehousing space is developing rapidly in Port of Nansha as well. With the increasing e-commerce business in China more of this type of warehousing in Free Trade zones are required. It is expected that another 170,000 sqm of general warehousing space will be delivered in the Free Trade zone in Q1, 2021.

This overall major infrastructural development and strategic hub development with the only location in GBA that has a comprehensive Sea – Rail – Air – Road connectivity Port of Nansha has also invested in its management functions, like 24/7 customs and inspection services, more and more automation in processes and trying to make doing business via this hub more and more user-friendly.

Overall a very dynamic picture in the South of China, which is exemplary for the overall trends happening in the China economy. We see relatively new ports like Port of Nansha growing and taking over from more established names like Hong Kong or some of the Shenzhen ports, not only focusing on export, but also developing the infrastructure for import, hub functions and multimodality.

With the focus on specialization on transportation, infrastructure and logistics in such a dynamic environment as the GBA, Guangzhou Port’s Port of Nansha is truly positioned to become one of the major shipping and trade centers of this South China powerhouse what the Metropole GBA is.

Greater Bay Area:

The Greater Bay Area, also known under its abbreviation “GBA” is an area comprising of a few major Cities, like Guangzhou, Shenzhen and Hong Kong, 9 municipalities, The Pearl River Delta and a vast developing infrastructure within the area.

While GBA has 4.5 pct of Chinese population, it produces about 9.5 pct of China’s GBP and is responsible for more than 16 pct of foreign investment and almost a quarter of China’s foreign trade.

IMAGE

In this area we see different direction of development. Where Hong Kong used to be not only the financial center, but also the trade and logistics center at the end of last Century, subsequently we then saw the remarkable growth and development of Shenzhen as a special economic zone in China. Shenzhen initially focusing on Joint Ventures and production has now grown in a Tier 1 City with 15 million inhabitants, developing more into High tech, Fintech and services industries.

Transformation in the GBA:
At the same time, we see a transformation of production and the logistics activities coming with it

from East Pearl River Delta to the more Western areas of the Pearl river Delta and to the inland provinces of South West China, even up to Sichuan province.

IMAGE

From a consumer and service industry development Guangzhou and Shenzhen are transforming their local economies as well. With large amounts of consumers around the Pearl River Delta Imports of goods, especially Frozen and Fresh foodstuffs and Beverages and Branded Consumer goods Have grown consistently with double digit figures over the last few years.

A major factor helping the GBA to grow consistently in all directions is the developing infrastructure to connect GBA with the Inland Provinces, but also importantly to make the infrastructural connections within GBA, so that it can truly develop as a Metropole, a new Bay Area, like some of the famous Bay areas that we see in other parts of the world, like New York, Tokyo or San Francisco.

Within the GBA all major cities are now connected via high speed high frequency trains, making it possible to travel within the GBA from every major city to another in less than 1 hour.

Also the Hong Kong Macau bridge-tunnel connection is a reminder of the GBA masterplan.

GBA Port Development:
If we look closer to the picture from a Port Development perspective. Originally Hong Kong was the major deep sea port of the Pearl River Delta. Huangpu was for a while in the early nineties also direct port of call in the major trades, although quite far up the Pearl River. But in most trades the size of the vessels were not surpassing 2000 TEU then, making Huangpu an ideal port for especially the North South trades and Intra Asia.

In the late nineties we see the major growth of the Shenzhen ports. More and more China business can ship directly from the mainland onto the mother vessel. Also Shenzhen draft is deep enough to accommodate the vessels in the large East-West trades.

Since the last 10 years we see the seize of the vessels in the East-West trades, but also in the North-South Trades further increasing. With the increase of the vessel size and the transformation of export especially towards the west side of the Pearl River Delta and the inland provinces we see the volumes of the Shenzhen ports starting to stagnate, Hong Kong volumes are falling, while the increase in volume now shifts towards the Western Pearl River Delta.

At the same time with the growth of imports and distribution function more space is required for warehousing and preferable in Free Port or Bonded areas.

Port of Nansha:
In the West Pearl River Delta Port of Nansha, as the only deep seaport on the west bank has become the fastest growing port of South China in the last few years. The growth is as well export as import driven.

Where it originally was the major port for the Africa trades in South China it has in the last few years established direct calls in the Transpacific trade and the Europe trade, North Europe and Mediterranean.

It also becomes more and more an important hub in the Intra Asia trades, especially with South East Asia, Taiwan, South Korea and Japan.

And with its value-added hub distribution function for major petro-chemical volumes the frequency with the Middle East trades has also increased.

Coming back to the major infrastructural developments in GBA, Port of Nansha has a few big projects to be delivered in the coming year, including a direct Rail Link with the China rail network, making Port of Nansha the only deep-sea port in the Pearl River Delta with an on-dock terminal rail connection. It’s connecting cargo rail link of 88 km at designated speed of 120 km/h will make connection with Guiyang -Guangzhou, Nanning-Guangzhou and Liuzhou-Zhaoqing railways and being an integral part of the Belt and Road initiative.

Port of Nansha infrastructure development:
But first with its channel-widening project it has finished this August 2020 its core infrastructure to make the port now ready to have 2 vessels of so called Mega vessel size able to pass each other to and from the Port of Nansha.

The widening project, serving as a “No.1 Project” of making Guangzhou port an international shipping hub, will put an end to the one-way navigation for large container ships between the Guishan anchorage and Port of Nansha area.

“Guangzhou Port will continue to improve its services in accordance with the deployment of Guangzhou International Shipping Hub construction. We’ll make full use of the new advantages of newly-built channels to improve port service efficiency, reduce integrated logistics costs and strengthen integrated transportation hub functions as well as jointly build coastal connections with customers” said Mr Li, Chairman of the Board of Guangzhou Port Group.

Cold Chain development:
Also, with the growing fresh and frozen goods development Port of Nansha will have the largest temperature controlled warehouse delivered in Q1 2021. This warehouse will have construction space of 150,000 + sqm and is also connected with the terminal and in the Free Trade Zone.

General warehousing space is developing rapidly in Port of Nansha as well. With the increasing e-commerce business in China more of this type of warehousing in Free Trade zones are required. It is expected that another 170,000 sqm of general warehousing space will be delivered in the Free Trade zone in Q1, 2021.

This overall major infrastructural development and strategic hub development with the only location in GBA that has a comprehensive Sea – Rail – Air – Road connectivity Port of Nansha has also invested in its management functions, like 24/7 customs and inspection services, more and more automation in processes and trying to make doing business via this hub more and more user-friendly.

Overall a very dynamic picture in the South of China, which is exemplary for the overall trends happening in the China economy. We see relatively new ports like Port of Nansha growing and taking over from more established names like Hong Kong or some of the Shenzhen ports, not only focusing on export, but also developing the infrastructure for import, hub functions and multimodality.

With the focus on specialization on transportation, infrastructure and logistics in such a dynamic environment as the GBA, Guangzhou Port’s Port of Nansha is truly positioned to become one of the major shipping and trade centers of this South China powerhouse what the Metropole GBA is.