port of nansha Archives

Port of Nansha, which is part of the Guangzhou Port Group, is now the fifth-largest port globally and the fastest-growing port in South China. Encompassing the Guangzhou, Foshan, Zhongshan, and Jiangmen regions, the Port of Nansha continues increasing its international presence through strategic infrastructure projects.

The latest development, which was deemed the International Logistics Center, serves as a mega-warehouse complex accommodating dry and cold warehouses with new on-dock rail connections for incoming manufacturers and vendors.

As part of the overall goal driving the International Logistics Center, Shenzhen Warehousing is officially at max capacity, further reiterating the importance of port diversification to promote a balanced and agile supply chain. The cold chain warehouse will accommodate a total storage capacity of 460,000 tons upon completion–the largest cold chain facility in South China.

“Port of Nansha Cold Logistics Warehouse, with rail access to/from the Hinterlands and Europe, will undoubtfully be a game-changer in our industry,” stated an International Logistics Center executive.

The port’s developing dry warehouse will support intermodal logistics and general-purpose warehousing services with 1.8 million square feet of total coverage. Nansha’s on-dock railway station will cover 1.05 million square feet of that area as well. Long-term goals for this development will support expansions in consumer goods, distribution, 3PL and e-commerce services.

“We were attracted to Nansha because of its strategic location and business-friendly approach to helping companies like ours to grow,” stated a 3PL anchor tenant. “The opening of this new dry warehouse will drastically save on warehousing cost, origin dray, and reduce lead times for our e-commerce customers.”

Nansha’s $231 million railway project spans from the Guangzhou Nansha Port in the east, connecting the Beijing Guangzhou Railway via the Guangzhou-Zhuhai Railway to the north and the Guizhou-Guangzhou, Nanning-Guangzhou and Liuzhou-Zhao Qing railway to the west. This massive project is known as the only on-dock rail in South China and serves as a gateway into the Belt & Road Initiative.

Meeting unprecedented demand brought on by the pandemic inspired the latest addition of a fourth new terminal offering fully automated capabilities starting this year. The construction of the new terminal will support the addition of 5 million TEUs to Nansha’s container throughput capacity and increasing the total ship-to-shore crane count from 65 to 78.

Port of Nansha America CEO and Founder John L. Painter confirmed they will continue to capitalize on additional growth opportunities, particularly to and from the North American market, which is requesting more ocean services. In 2020, Nansha saw a 55.4 percent increase in TEU movement to/from North America compared to 2019 reports, bringing the total number of TEUs moved globally to more than 17.5 million of the 23.51 million TEUs Guangzhou Port Group moved globally in 2020.

Ports in southern China impacted by Covid-19 lockdowns that are further disrupting the global box trade have seen a significant slump in container availability in the last two weeks, according to the latest data from Container xChange.

Pearl River Delta port productivity has slumped in recent weeks with container lines citing positive Covid-19 cases for slowing productivity.

Yantian and Shekou ports, near Shenzhen, and Nansha port, part of the Guangzhou box hub, have been most affected. All three have seen significant drops in container availability in the last two weeks, according to Container xChange, the world’s leading online platform for the leasing and trading of shipping containers.

“Far few empty boxes are arriving back to southern China as container lines skip calls and many shippers will likely face long delays or higher prices for equipment if they can’t avoid using the affected ports,” said Dr. Johannes Schlingmeiner.

Yantian saw a 19% drop in incoming containers between Week 17 and last week (Week 22). Nansha’s drop in incoming containers over the same period was 16.4%, while at Shekou the plunge was 29.6%.

Each of the ports also suffered major week-on-week drops in incoming boxes with an average change between Week 21 and Week 22 of -4.1% at Yantian, -16.7% at Shekou and -10% at Nansha.

In Container xChange’s Container Availability Index (CAx) an index reading of below 0.5 means more containers leave a port compared to the number which enter. Above 0.5 means more containers are entering the port.

At Yantian, the CAx reading for a 40 ft dry container was 0.61 in Week 17 but fell to 0.47 in Week 22. At Shekou and Nansha similar drops were apparent over the same time period for most equipment types.

“Our forecasts suggest container availability at these ports in southern China will not increase in the coming weeks as more container lines cancel calls,” said Dr Johannes Schlingmeiner.

“We expect container prices in those areas to increase and many shippers will likely turn to Shipper Owned Containers (SOC) which are still available on our exchange.”

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About the Container Availability Index:

The Container Availability Index monitors and forecasts global container equipment supply by tracking millions of monthly container moves. For more information and weekly email updates, check out: https://container-xchange.com/features/cax/

About Container xChange:

Container xChange operates the leading online platform for the leasing and trading of shipping containers. More than 600 shipping companies including Kuehne+Nagel, Seaco and Sarjak rely on its platform to increase flexibility and simplify the operational handling of SOC Containers. Founded by Dr. Johannes Schlingmeier and Christian Roeloffs in 2017 and headquartered in Hamburg, Germany, the company now has more than 100 employees.

http://container-xchange.com/

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