Zhanjiang building world-class port-based industrial cluster

Guangdong port economic zone focusing on enhancing international partnerships

As one of the country's first coastal open cities, Zhanjiang in South China's Guangdong province is resolutely focused on expanding and enhancing its heavy and petrochemical industries, marine engineering equipment, marine ranching and coastal tourism in an effort to establish a world-class port-based industrial cluster.

Recent strategic moves by the city include ramping up investment promotion and expediting construction of its port economic zone. In November 2024, the provincial government unveiled a comprehensive construction plan for the zone, spanning an area of 148.81 square kilometers, with a development strategy focusing on four key sectors: electronic information; new materials; light industry textiles; and agricultural product import processing. They will be supported by industries such as new energy, marine engineering equipment, shipping logistics and cross-border trade services, forming a modern industrial ecosystem centered around export processing.

The plan also underscores that the port economic zone will harness the advantages of local gigantic projects like Baosteel, the Zhongke refinery and petrochemical project, and BASF's Verbund site.

For example, BASF decided to establish the Verbund project in Zhanjiang in 2022, with a total investment of approximately 10 billion euros ($10.7 billion). Once operational, it will stand as BASF's third-largest integrated production base globally. The core installation of this project is expected to commence production by the end of this year.

Ding Li, an economic researcher at the Guangdong Academy of Social Sciences, believes that Zhanjiang's future development prospects hinge on transforming the resource advantages brought by these major projects into tangible local economic benefits.

By 2030, Zhanjiang's port economic zone is projected to gather a cluster of key enterprises, positioning itself as a prime destination for domestic and international industrial relocation and a model for international capacity cooperation.

"We must approach construction of the port economic zone with a sense of urgency and responsibility, accelerating its progress to make Zhanjiang a pivotal growth hub within the modern coastal economic belt and as a provincial sub-central city," said Yu Gang, the city's Party secretary. He emphasized that building the port economic zone represents a significant opportunity for the city to achieve leapfrog development.

Yu highlighted the need to bolster leading industries such as steel and petrochemicals to accelerate growth of the port-based industrial cluster. He said enhancing external industrial partnerships, particularly with the Association of Southeast Asian Nations, and transforming the Guangdong-ASEAN international cooperation industrial park into a hub for export processing and services are priorities.

In August 2023, the Guangdong Fenyong ASEAN Industrial Park initiated a collaboration with the China-Vietnam (Shenzhen-Hai Phong) Economic and Trade Cooperation Zone, pioneering a new cooperative model for parks within and beyond Guangdong. In February 2024, they jointly proposed establishment of the Guangdong-ASEAN Industrial Park International Cooperation Alliance in Zhanjiang, marking a significant milestone in economic and trade cooperation.

Last month, Thailand's Borthong Industrial Estate joined the alliance, expanding its member parks to 10.

Yu urged Zhanjiang to enhance the business environment and cultivate new strengths for the port economic zone, including improving the transportation and storage capacities of Wushi Port and optimizing the zone's transportation networks. He added that administrative reforms should also be deepened to facilitate cross-border trade and enhance public services, while promoting the digital and intelligent development of the zone.

Mou Zhiping, executive vice-mayor of Zhanjiang, said the city's port economic zone, facing the Hainan Free Trade Port across the sea, serves as a gateway for Guangdong to engage with ASEAN. He added that Wushi Port, which is one of the closest seaports from the Chinese mainland to Southeast Asia, the Middle East, and Africa, boasts unique geographical advantages. With construction conditions for a 100,000-dead-weight tonnage wharf and a 200,000-dead-weight tonnage shipping channel, Wushi has the potential to emerge as the primary port linking ASEAN countries.

Mou said plans are underway to enhance Zhanjiang's transportation network and establish an agricultural product distribution and deep-processing center, making it a major export processing industrial base and a crucial energy supply hub for Hainan province. The city is also proactively welcoming industrial relocation from the Guangdong-Hong Kong-Macao Greater Bay Area and fostering key industries like energy and marine engineering equipment.

Since 2023, the Zhanjiang port economic zone has attracted 100 industrial projects with a total investment of about 42 billion yuan ($5.8 billion), including several high-tech, high value-added export processing projects. In 2024 alone, it secured 65 manufacturing projects, with a total investment of over 24 billion yuan.

Tang Zhongping, president of Guangdong Bihui Industrial, said: "When considering business development, factors like commuting logistics and land costs are critical. The Zhanjiang port economic zone's proximity to the ASEAN region ensures low logistics costs and smooth operations, offering an ideal environment for establishing a high-end eyewear industrial park locally."

haonan@chinadaily.com.cn

Zhanjiang Port, one of China's 25 main coastal ports, can handle 400,000-dead-weight tonnage ships. CHINA DAILY

A signing ceremony is held at the Guangdong-ASEAN Industrial Park International Cooperation Alliance and Zhanjiang Port Economic Zone Joint Investment Promotion Conference held in Zhanjiang city on Feb 7. CHINA DAILY