Bonded center

The newly approved bonded logistics center will enable companies to expand the exporting, international trans-shipment and re-exporting businesses, according to Zhanjiang Customs.

Although it is an important distribution hub for bulk goods such as crude oil, iron ore, coal, fertilizers and sulfur in South China, Zhanjiang port has not achieved substantial growth due to limited storage space.

The bonded logistics center will provide Guangdong Jinling Sugar Industry Group Co, one of the leading sugar makers in the country, with ample storage space. Zhanjiang is one of the strategic sugar reserve centers in the country but bonded warehouses in the city had been scattered and small.

Without such a center, some Zhanjiang companies had to use facilities in other cities.

The center will help companies cut operating costs, be more flexible in exports and better withstand risks in global market.

It will also push forward the transformation of the processing trade in Zhanjiang, said Guo.

The center is located in the seaside industrial park that has a planned area of 390,000 sq m and total investment of 535 million yuan ($87.12 million). With construction beginning this month, it will include 40,000 sq m of warehouses, a 130,000 sq m storage yard and a dedicated rail line.

A total of 212 logistics and foreign trade companies, including China Merchants Holdings (International) Co, Sinotrans Guangdong Co, Shenzhen Yantian Port Group and Baosteel Group, have expressed their intention to move into the area.