JCtrans: Hello, Mr. Zhang. Long Kou Port has been developing for hundreds of years through thick and thin. There must be profound culture deposit to form the core competitiveness of the enterprise. Can you share with us the enterprise characteristic culture of Long Kou Port?
Mr. Zhang: Long Kou Port was founded in 1914. Now it has passed nearly a century trials and hardship course. Therefore it formed the enterprise culture with unique charms. Among these, many outstanding spirit and traditions are always our power to overcome difficulties and make continuous improvement. In 2004, Long Kou Port launched an enterprise culture shaping project named "New Era" in order to remodel port enterprise culture and promote enterprise core competitiveness. After years of development, Long Kou Port has gradually formed its own enterprise culture which conform to the enterprise development pursuit as well as the time development needs.
Firstly, distinct time characteristics. For example, our enterprise core values are "worship people, develop port; benefit world with logistics; fulfill oneself, benefit others", our competitive ideas are "improve strength, pursuit mutual benefit", our innovative concepts are "self-surpass and dare to be the first" and so on. All of these follow times pace and highlight the era characteristics.
Secondly, distinct regional characteristics. For example, our enterprise target is "to create modern million tons port", our management localization is "to construct advantages in major business and to develop modern logistics", our safety concept is "do not pursuit benefit at the cost of blood" and so on. All of these reflect the industry characteristics, management emphases and level development of the enterprise, which make the enterprise culture take root gradually into the interior and is accepted by the external.
Thirdly, good traditions inherited from Long Kou Port. The long formed culture tradition of Long Kou Port always follows the enterprise and harmonious connotation of Confucian culture. So our enterprise culture inherits this connotation. For example, our entrepreneurs philosophy is "wisdom, faith, benevolence, brave and strict", our enterprise spirit is "self-reliance, pragmatic and innovative, harmonious win-win" and so on.
Next, with enterprise innovation as a driving force, with customer satisfaction, employee satisfaction, investors' satisfaction and social satisfaction as target, we will further strengthen cultural management, constantly enrich and deepen the existing enterprise culture connotation and construct organizational culture that based on ability and competed with environmental change and enterprise development strategy.
JCtrans: As the biggest bulk cargo export trade port to Africa in China, what business advantage does Long Kou Port have? Especially in bulk cargo?
Mr. Zhang: In January 2003, the first groceries ship to Africa - "Edelweiss" sailed out of Long Kou Port. Seven years have passed, Long Kou Port has gradually set up its own logistics service brand. China-Africa groceries liner completed its course from scratch to the number 1 of the nation. Reviewing the development of China-Africa groceries liner, I think Long Kou Port mainly have three business advantages:
First, abundant resources, such as cement, steel, vehicles and so on in the vast hinterland lay the foundation for ship route;
Second, the provincial services, for example, "China-Africa groceries liner", promote attraction and competitiveness.
Third, the whole-process logistics services extend value-added service ability. The whole-process logistics services are the centralized embodiment of our service concept "intentions to seize, meticulous service".
JCtrans: Africa and South Korea groceries routes are the main brands of Long Kou Port. What do you think of the current market status of Africa and South Korea routes? And what do you think of the prospect of Africa route in 3-5 years?
Mr. Zhang: Economic exchange between China and South Korea is rising year by year. The market operation environment is also gradually improving and progressing. In 2007, China became Korea's biggest trading partner. With many South Korean companies moved their factories in mainland China, South Korea has increased the imports of consumer products and industrial parts from China. Although containerization is a big trend, yet it cannot substitute bulk cargo. And in Sino-South Korean bulk cargo aspect at present, the ports that can provide stable sailing schedule service are less. Long Kou Port is one the nearest ports which adjacent to South Korean in Shandong province. So it has distinct comprehensive advantages. Especially, the shipping line from Long Kou Port to South Korea Inchon has been opened for more than two years, which has a high reputation and influence in customers of Shandong Province and South Korea.
The route from Long Kou Port to Africa began in January 2003. After seven years of development, it had become a comparatively matured African groceries logistic platform. These China-Africa groceries routes cover most of the African coastal states, such as Angola, Congo, Ethiopia, Cameroon, Sudan, Nigeria, Madagascar and so on. The ship route density can reach 9-12 per month. In recent years, China-Africa ro-ro route developed rapidly, and achieved successful cooperation with the world's four ro-ro operating company. Our port integrated service level won recognition of numerous customers, and our port service function has been further improved.
The current market condition of Africa route is good. With the financial crisis gradually subsided, the construction in progress and operating rate of the West Africa states tend to rise. They also hope that China can increase the investment to Africa. The big logistics traders in China-Africa trade circles think highly of the export situation to Africa in the latter half of 2010. In 2010, Long Kou Port China-Africa groceries shipping line is in steadily rising stage and is steadily consolidating its first place in China's African bulk cargo export trade ports. Under the premise of African political stability, we predict that the general trend of Africa route in the next 3-5 years should be comparatively stable. And that will benefit our development of China-Africa groceries shipping line.
JCtrans: In modern logistics system, the competition among ports has become integrated with a variety of means of competition. Facing today's market changes, please talk about the strategic planning of Long Kou Port.
Mr. Zhang: Based on our strategic positioning of constructing modern logistics center, in the next five years, Long Kou Port will based on the south of Bohai sea coast, radiation across East China, northeast and northwest areas in order to build the integrated logistics service platform that set transportation, trade, finance, information and port function as one. We will focus on developing six distinctive brand logistics chain -- China-Africa groceries liner, bauxite, coal, liquid chemical, wood and container, constructing Long Kou Port as the fourth party logistics service base, the national regional coal distribution center and bauxite import base with strong regional radiation ability and certain international logistics distribution function, the major petrochemical interim storage base in Shandong and important ore, container domestic trading transit base, and the biggest timber distribution center in the north of Yangtze river. We strive to basically complete the construction of modern logistics center and the shipping center at the south of Bohai sea coast in 2015.
