China continues to build port facilities at a frantic pace. In early 2006, Li Shenglin, the communications minister, stated that throughput capacity of Chinese ports would increase 80% by 2010. Even this, however, may not be enough to cope with soaring demand. Indeed, the government has projected that the current capacity shortage would worsen from 500m tonnes to 2bn tonnes over the next few years. Nevertheless, the real bottleneck in the Chinese transportation system is not at the ports themselves, but in the overland transport network, as well as at the overseas ports receiving Chinese goods.

Until greater road and (especially) rail capacity is constructed in China and elsewhere (especially the US west coast), shippers will have more problems moving goods to and from ports than in loading the ships themselves.

Foreign investors are important contributors to China’s port modernisation projects—Hutchison Port Holdings (HPH) of Hong Kong, P&O Ports of the UK, Port of Singapore Authority (PSA) and Dubai Ports Authority have taken stakes in various Chinese ports. Projects that will enable more ports to handle containerised cargo will continue to feature largely in development plans.

Over the next 20 years the government aims to establish a comprehensive river transport system that will link all major rivers in China’s western region to major coastal ports. It is also developing more second-tier ports to take the pressure off the major facilities. The Yangtze River will continue to be the main navigation channel.

Table 12.7.4