1. How do you look back on 2022, being one of the 10 best largest container ports in the world?
In 2021, the container throughput of Tianjin Port exceeded 20 million twenty-foot equivalent units (TEUs) and ranked eighth on the list of world largest ports in terms of total container handling capacity, and growing the fastest among the world’s top 10 ports. Tianjin Port will strive to achieve 25 million TEUs by 2025 and continue to open a new chapter in the story of prosperity of Tianjin Port’s world-class port.
The market environment in 2022 was more difficult than that in 2021. Other than the conflict between Russia and Ukraine, and financial policies tightening in Europe and the United States, China’s economic growth was slower-than-expected due to the resurgence of the COVID 19 pandemic and related strict control measures. In this challenging market environment as at Q3 2022, Tianjin Port as a whole handled accumulatively cargo throughput of 363 million tonnes, 3.3% more year-on-year, and container throughput of 16.54 million TEUs, 4.7% more year-on-year, via enhancing efficiency and various flexible measures. Tianjin Port Co., Ltd., the major controlling subsidiary of Tianjin Port Development Holdings Limited (“Tianjin Port Development” or the “Company”) still managed to achieve profit growth of 11.9% in the first three quarters of 2022.
In mid-October 2021, Tianjin Port Group (the controlling shareholder of Tianjin Port Development, which holds 53.5% stake in the company) unveiled what it says is the world’s first zero carbon emissions smart terminal in Beigang area of Tianjin Port. This smart and ‘zero-carbon’ smart terminal can serve as an example of intelligent upgrading and low-carbon development of ports all over the world. As at Oct 13 2022, this zero-carbon smart terminal in Beijiang port area had handled 1 million TEUs since it started operation in October last year.
2. How are you able to manage and improve the sustainability strategies with the stakeholders? Tell us about your visions and key factors to success.
Tianjin Port Development has been investing resources in promoting its sustainable development and its sustainability strategies emphasize five principles, namely “Environmental Commitment”, “People Focus”, “Quality First”, “Customer Oriented” and “Community Care”, which are incorporated into its daily management and operations. The Company has kept strengthening communication and cooperation with various stakeholders so as to continuously improve sustainability management.
Building a smart port is a major undertaking of the Company. We aim high and strive to build a world-class smart port and a green port, to better serve the coordinated development of the Beijing-Tianjin-Hebei region and construct the “Belt and Road” initiative.
We continue to propel port automation with advanced smart, automatic and communication technologies, aiming to improve service efficiency while reducing service costs and offering customers with better experience. The Company continues to make use of artificial intelligence algorithms and big data to develop new smart projects, implement innovative business operation and analytics systems to enhance operating intelligence and customer service efficiency. In addition, we keep hastening automatic transformation of traditional terminals, and designing our own fully-automated facilities and equipment.
The Company has dedicated much effort to implementing sustainable development concepts and paying more attention to topics such as green development, smart and safe production. All these efforts have laid a solid foundation for the Company’s success.
3. How did the market change post covid-19 and where do you see it going?
Since the outbreak of COVID-19 pandemic in 2020, ports around the world, those in overseas countries in particular, have seen containers stacked up and even halt service. The pandemic has brought to the foreground the need to develop smart ports. In recent years, Tianjin Port Development has actively used innovative technologies to build smart ports. It currently owns more than a dozen world-first technologies that have helped it improve operational efficiency. For example, a single driver can take remote control of six automated facilities simultaneously. In the future, Tianjin Port Development will continue to pursue automation and intelligent reforms plus upgrade its facilities.
Furthermore, during the pandemic, sea freight was adversely affected by land transportation restrictions in mainland China. In light of that, Tianjin Port Development enhanced the function of its feeder network and optimized the linkage between main services and feeder services within the port in Tianjin-Hebei area, built a collaborative operation platform for feeder services covering the Bohai Rim, and promoted vigorous development of “daily shift” services. An alliance was forged and the “Maritime Expressway – FAST” service brand was created, enabling coordination and link up of all processes, from delivery from factories, loading and unloading at the ports and piers, sea transportation and on-shore storage and logistics to receipt of goods by end customers, thus forming a “door-to-door” standardized transportation system. We have been able to make better use of our marine channel advantage to improve overall freight efficiency and bring more business opportunities to Tianjin Port Development. At the same time, Tianjin Port Development is also starting to actively take part in multi-operational partnership covering road, rail and sea transportation, which will become a new business model serving the “Belt and Road Market”.
4. Do you see your company expanding its offerings in future? FY2023
In the future, Tianjin Port Development will hasten transforming its transportation mode. For inbound operations, under the “Maritime Expressway Express—FAST” service brand, it will speed up expanding coverage of its ports and land logistics network in the Tianjin-Hebei region. And, for supporting outbound logistics, it will extend the sea-rail shipping channel. Moreover, it will continue to upgrade automation of its piers, so as to achieve complete digital transformation. Furthermore, it will press on with using green energy, step up “zero-carbon port” construction, implement its “dual-carbon” goals, and take to greater depth the work of building an international shipping hub in northern China.
