Home> Three years on SPG aims high in building world class sea ports

SPG to make breakthroughs in world-class sea port development

|chinadaily.com.cn |Updated: August 5, 2022

SPG, also known as the Shandong Port Group, was founded on August 6, 2019. It has taken an active role in addressing the challenging environment created by the COVID-19 pandemic and global shifts that haven't been experienced in a century over the past three years. It has brought the workforce together and motivated everyone to work hard and take risks. The group has developed an integrated port with impressive progress, and its port integration reform has made steady progress. Increased attempts have been made to transform the area into a Northeast Asian maritime hub center with five different types of technologically cutting-edge ports. A lot of progress has been made on the road to becoming a world-class sea port.

SPG has posted stellar growth, which has showcased the group's remarkable progress in the past years.

Despite the pandemic, the company placed first and third internationally for its cargo throughput in 2021, which exceeded 1.5 billion metric tons, and its container volume, which topped 34 million TEUs (Twenty-foot Equivalent Units), increased by 25.8 percent since its establishment. Compared to three years prior, when the group was founded in 2019, the group's sales in 2021 more than doubled to exceed 833.9 billion yuan ($12.43 billion), and its profits increased by about 40 percent to 7.56 billion yuan. Its overall assets and net worth increased by almost 30 percent to 250 billion yuan and 100 billion yuan, respectively, and its per-capita profits increased by 34.3 percent to 226,000 yuan.

Serving China's major national strategies

Geographically, SPG is located at the intersection of the Silk Road Economic Belt and the 21st Century Maritime Silk Road, which enables the company to better leverage its role as a major shipper by dovetailing itself with national strategies. From the perspective of Shandong's development strategy, the province is a major coastal port province. Qingdao, Rizhao, and Yantai ports in Shandong all rank among the top 10 ports in the country in terms of throughput. However, compared with other world-class ports, the ports in Shandong faced distinct problems such as chaotic competition and redundant construction.

Against such a backdrop, the CPC Shandong Provincial Committee and the Shandong Provincial People's Government made a decisive decision to promote the integrated development of its ports, and established SPG.

Deepening reform and achieving breakthroughs

The year 2020 marked the first year of operation since its establishment. In 2020, SPG handled 1.4 billion tons of cargo, growing by 7.5 percent year-on-year, and its container volume increased by 6.5 percent to 31.47 million TEUs. The growth rate of its cargo volume and container volume were 4.3 and 5 percentage points higher, respectively, than the national average.

Port integration reform has enabled SPG to play a positive role in serving national strategies, promoting new drivers of growth and stabilizing industrial and supply chains. In 2021, SPG, as the only representative of provincial enterprises and national port enterprises, shared its port integration reform experience at the China Enterprise Forum and the SOE reform meeting, which gave the group more widespread recognition from all sectors of society.

Since the beginning of this year, SPG has started a completely new journey of all-round integration, which includes further improving resource allocation and strengthening coordinated and collaborative development.

Delivering solid performance to pursue transformative development

"Placing top priority on performance" is the annual key task for SPG. In the past three years, the company has seen its subsidiaries draw strength from port integration reform to prosper collectively. Qingdao Port has moved up to fourth globally for the cargo volume and sixth for container volume globally, joining the ranks of top-rate ports. Rizhao Port ranked ninth among global ports, Yantai Port ranked eighth nationally and Bohai Bay Port doubled its operation revenue. These achievements have reflected the strong vitality presented by the effect of the maritime cluster.

The company's main business scope has experienced substantial changes as it advances port integration reform.

In light of the principle of port development both at home and abroad, SPG has abandoned the traditional development path of "giving top priority to cargo throughput". It has intensified attempts to change from a port handling manufacturing equipment to one handling both production equipment and consumer goods. Additionally, efforts have been made to switch from being a traditional port to a digital port and to change the emphasis from conducting traditional business to conducting progressive forms of business.

To pursue the transformation and high-quality development, SPG has set a goal of evolving into an international shipping hub center in Northeast Asia that is marked internationally by advanced sea ports in five areas, which include smart and green ports, logistics hub ports, financial and trade ports, industry-city integration ports, and cruise culture and tourism ports.  

Treating each other with mutual respect and inclusiveness to prosper respectively and together

Over the years, SPG has ensured that the staff members are the masters of the company. The 60,000 employees are closely united like the seeds inside a pomegranate, and their sense of benefit, happiness and security have been comprehensively enhanced. A convenient platform has been put in place for employees to offer their views and suggestions. Creative ideas suggested by the employees have been implemented with fruitful results, which have promoted the integrated reform of the group. Skills competitions have been held for three years in a row and a platform has been set up by employees to boost technological innovation. 

SPG has strengthened strategic cooperation with 16 prefecture-level cities in Shandong, aiming to be a "gold partner" with cities in the province. Furthermore, it has deepened practical cooperation with world-renowned enterprises, attracting a total investment of 7.34 billion yuan. It has also stepped up efforts to promote the construction of key projects, with a total investment of 110.8 billion yuan and an annual growth rate of 24 percent, and the proportion of investment in emerging industries has reached 40 percent. The capacity of newly-built terminals has reached nearly 100 million tons.

Over the past three years, SPG has maintained focus by actively organizing a host of high-level cooperation platforms such as the Land-Sea Linkage Seminar, the Petroleum Trade Conference, the Grain and Oil Conference, and the Commercial Vehicle Conference, all of which will further expand its influence and capacity to lead the industry and help the group develop into a participant, promoter and pacesetter for industrial transformation and upgrading.

Every employee has played an important role in SPG's development and progress.

The glory of success belongs to the 60,000 employees who work hard, and for them to dream big to break new ground.

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Shandong Port Building, No. 7 Gangji Road, Shibei district, Qingdao, Shandong province, China
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