The East-to-South Coal Transport project began in 2017 to serve as a key project for both Rizhao city and Shandong Port Group (SPG) in port construction. 

It has moved the heavily polluting cargo handling of bulk commodities and coal from the eastern working field of Shijiu Port area to the southern part, far from the urban district, in an effort to realize the port’s ecological transformation. 

This project is considered a key move for SPG to advance high-quality development and port-industry-city integration.

Three benefits are delivered by this key project. 

First, relying on its strengths such as a large-scale bulk commodity terminal cluster, a yard storage space of 820,000 square meters, and a storage capacity of 3.61 million metric tons, the southern area has gained enough space to hold the cargo handling transferred from the eastern area. This will allow the release of port capability, realizing an annual coal transport capacity of 50 million metric tons after the completion of the project.

Second, with the geographical advantage of being close to Rizhao-Watang railway, an artery of China's coal transport system, the cargo distribution and transport network of Rizhao Port is adjusted from “north in north out” to “south in south out”. In this way, it minimizes the impact of port production on residents’ lives while saving transport costs for the port and its customers.

Third, new industries worth 10 billion yuan ($1.4 billion) will be brought to Rizhao and SPG’s port-industry-city integration system after connecting the Lighthouse Scenic Area with Hailongwan, which will become the nucleus of the city’s economy.

The East-to-South Coal Transport project at Rizhao Port reflects the new thought and path forward for SPG’s high-quality development.

SPG has adjusted the “10-sphere integrated plan” based on the general goal of “speeding up the construction of world-renowned seaports” since its establishment, admitting industry-city integration as a part of the 10 sector-based groups by giving priority to its future growth.

Following the orientation of port-industry-city integration, SPG rapidly completed its transformation from a provincial State-owned enterprise to a partner linking itself with local and regional economic growth. 

The coastal cities, supported by marine resources, have increased the number of freight trains and shipping lines, and leveraged their remarkable potential for excellence to advance port-related industry and economy. The inland cities have boosted inland port development by moving port services to the doorstep of inland enterprises, with logistics industrial chains as the link, in order to enhance regional economic growth.

SPG has signed strategic cooperation agreements with Zibo, Qingdao, Weihai and Weifang, respectively, over the past few months. With the help of comprehensive strength empowered by integration efforts, SPG stands ready to enhance all-round cooperation with 16 cities in Shandong province through port-city integration, embarking on a new landscape of a flourishing city with port and port-city-industry integration.