More investment in China will be good for U.S. shippers, says NYK

Patrick Burnson, Executive Editor -- Logistics Management, 12/27/2007

SECAUCUS, N.J.—In a move to ensure U.S. shippers with long-term access to a deep water gateway in China, NYK has announced a new round of investment in that country’s port and terminal infrastructure.

“We want to provide shippers with more outbound capacity during the peak season,” said Bill Payne, vice president of trade management for NYK North America. “That means loading bigger ships and having enough harbor draft to accommodate them when they are fully loaded.”

NYK expects to be admitted as an investor in Phase 3B of Da Xiao Yang Shan Container Terminals, now being developed under the auspices of Shanghai International Port (Group) Co., Ltd (SIPG).

In addition to its investment in Phase 3B of the Da Xiao Yang Shan project, NYK has announced its investment in Phase 3 of Da Yao Wan Container Terminals in Dalian. The company’s investments in these projects are designed to strengthen its bases for container transportation and respond effectively to the growing needs for high-quality logistics solutions in Northern and Eastern China.

In an interview with LM, Payne said that U.S. exporters of grain and other agricultural products will also benefit from calling a deep-water port.

“Deadweight tonnage will no longer be an issue,” he said.

NYK has separately invested in China's RoRo (roll on, roll off) terminal businesses in Shanghai, Dalian, and Tianjin. Spokesmen said future expansion of these logistics facilities is on the agenda, responding to demand in the rapidly-growing markets of Shanghai and Tianjin.

With this series of investments in vessels, containers, and RoRo terminals, NYK intends to bolster its position as a highly competitive “integrated logistics service provider.”

NYK first started weekly container vessel service in Shanghai in 1994 and then launched North American West Coast service operated as Grand Alliance in 1996. The company presently has 22 weekly services connecting Shanghai with various destinations around the world. Its handling volume in Shanghai this year is estimated at over 500,000 twenty-equivalent-units (TEUs).