Shanghai’s Pudong Shipping Hub is Bullish
Shanghai’s Pudong New Area has made progress in building an international shipping center last year and the opening-up reforms in the city’s free trade zone (FTZ) have lured another six global ship management firms to dock there, reports Shanghai Daily.
So far, six overseas ship management companies have been set up in the zone after China for the first time allowed wholly foreign-funded companies to operate in the sector in the FTZ.
There are six more firms from Germany, Singapore and Hong Kong in the process of establishing subsidiaries in the zone.
Ma Hongqi, head of the service office of Pudong’s shipping department, said that ship management was the core sector of the shipping industry that drives the development of the upstream and downstream sectors. Her department will continue to boost the sector after the Shanghai zone is expanded, she added.
Pudong is the new economic engine of Shanghai, majority of Shanghai modern city landmarks are located in this district. In some way, Pudong represents the whole Shanghai and the 30 years’ achievements of Shanghai in the aspect of economy and reform.
Pudong also witnessed the creation of an international shipping service innovation zone, a shipping finance base and a shipping insurance center last year.
On the flip side, Ma said there is still huge gap between Shanghai and the world’s leading shipping centers. Shanghai’s marine insurance, key for the shippers, now accounts for only 1 percent of the global market share.