The new status of China’s Hainan island, which is situated off Guangxi, in southwest China and east of Vietnam, as a special economic zone is attracting liner operators such as SITC Container Lines and COSCO.
Chinese intra-Asia carrier SITC is tapping into the tax concessions offered to ships registered in Hainan. On 19 September 2020, the company registered a branch office on the island, becoming the first shipping company to do so.
Speaking at the China Green Companies Summit on 28 September, SITC chairman Yang Shaopeng said Hainan has unique geographical advantages. “We’re backed by mainland China and the Greater Bay Area, facing the ASEAN market. SITC can therefore provide shipping networks and routes for all ASEAN countries. In this regard, Hainan has opened up the connection between China and ASEAN.”
Yang said that some of SITC’s ships will be registered in Hainan, and his company will also complete the logistics industry chain by establishing a ship management company, a crewing agency, a crew training and education centre, and an e-commerce platform on the island.
On 28 September, COSCO Shipping Lines launched the China-North Australia-South Pacific (CAP) service, a direct loop connecting Hainan with Papua New Guinea and Northern Australia. It is also the first international service from Hainan.
Served by two chartered ships, the 1,732TEU Hansa Cloppenburg and the 1,102TEU Tokyo Trader, the CAP service calls at Hainan’s Yangpu port (Xiaochantan Container Terminal), Hong Kong, Cebu, Lae, Port Moresby, Brisbane, Townsville, Darwin and Yangpu.
Last year, Hainan’s provincial government transferred 45% of its interest in Hainan Harbor & Shipping Holdings to COSCO. While the provincial government still owns a 55% majority stake, COSCO has assumed control of HHSH’s operations. As part of the agreement, COSCO is widening its activity in the region and involving Hainan in more liner routes.
Martina Li
Asia Correspondent
