November 24, 2008
China Shifts Shipping Strategy
Chinese President Hu Jintao is in Greece to cement a billion dollar deal to expand the container port at Piraeus. In 2007 the Port of Piraeus handled 1.37 million TEU containers. The expansion planned by Chinese shipping conglomerate COSCO will expand Piraeus capacity to almost 4 million containers by 2015. In 2005 the Piraeus port was connected to the railway network in Greece. These developments will strengthen Piraeus's status as a 'hub' port in container shipping. Almost 40% of the container traffic at the port is transhipment.
In fact, COSCO is developing its facilities at Piraeus as part of a larger strategy to create a new service linking China with North America via the Mediterranean. Several aims are accomplished here. Chinese exports have a new hub to serve southern and more importantly emerging economies of East Europe and bypass competition from Rotterdam and Hamburg. And Chinese exports will now reach the eastern Atlantic and Gulf ports of the USA. The Port of Houston is developing expansion to accomodate container megaships. I believe we are seeing a new shift in Chinese export strategy not to replace but supplement the one-sided Pacific trade between the Chinese coast and LA/Long Beach.
# posted by Sinomania! : 11/24/2008 10:56:00 AM
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