As the only provincial specialized company in Shandong Province with ocean shipping as its main business, Shandong Shipping Co., Ltd. (hereinafter referred to as "Shandong Shipping" or "the company") thoroughly implemented the spirit of the important instructions of the General Secretary, Xi Jinping to "pay more attention to the economy of the ocean", actively practiced the strategy of strengthening the ocean and serving the construction of a strong ocean province. Under the strong leadership of Shandong Ocean Group Co., Ltd., it initially formed water transportation as the core. The development pattern of "one body and two wings" industry, which is based on shipping finance and shipping services, operates 137 large ships of various types, and the control capacity exceeds 15 million deadweight tons, ranking the top three in China and ranking first among provincial-level enterprises. The ethane capacity ranks first in the world, effectively reversing the passive situation of "a big maritime province, a small maritime province and a weak port" and better shouldering the heavy responsibility of revitalizing the shipping industry in our province.
Shaping the advantages of main business and ensuring the stability of supply chain
As a backbone shipping enterprise in Shandong Province, Shandong Shipping has conscientiously implemented the requirements of "ensuring the supply chain safety of grain, energy resources and important industrial chains" put forward by the Party's Report to the 20th CPC National Congress, constantly strengthened and improved its main business, and continuously provided high-quality water transportation services to meet market demand. It only took more than ten years to grow into a "China Top 500 Transportation Enterprise".
(i) Build a world-class ocean shipping fleet. In the early days of its establishment, Shandong Shipping dared to go against the trend, seized the opportunity that the ship price was at a historical low due to the depression of the global shipping market, and realized the initial construction of transportation capacity through various means such as "buying, renting and booking". In the process of development, the company innovated its business model, adopted asset-light strategy, redefined the shipping industry with financial thinking, and achieved low-cost or even "zero-contribution" capacity expansion through reasonable financing structure design and operation system construction. In recent years, the company has comprehensively promoted the "three-year action plan" for the adjustment and optimization of transportation capacity structure, and achieved a dynamic balance of the ratio of cornerstone transportation capacity, floating income transportation capacity and market income transportation capacity of 4:4:2, laying a solid foundation for sustained and stable profitability. At present, the average age of Shandong shipping fleet is less than 5 years, and the ship performance is at a high level in the industry, with strong market competitiveness.
(ii) Build a green intelligent ship with direct access to rivers and seas. Shandong Shipping deeply participated in Xiaoqing River's resumption project, innovatively put forward the transportation mode of "inland river self-propelled and marine pushing", designed and built the first batch of Xiaoqing River's green intelligent series ship types such as motor-propelled inland river and marine barge multipurpose ship, inland river and marine barge container ship and 2200HP pusher ship without landing and barge, and the pilot project of green intelligent inland river transport ship was selected as the first batch of pilot tasks for accelerating the construction of Shandong Demonstration Zone as a transportation power. In July this year, the inland river and sea barge container ship carried 1,080 tons of barley imported from Alashankou Port by the Central European train, and sailed from the main city port of Jinan Port of Xiaoqing River to Gaoqing Port of Zibo Port, realizing the first cargo voyage after Xiaoqing River was suspended for 26 years. Xiaoqing River green intelligent ship will play an important role in the new land-sea channel connecting the provincial capital, connecting central Shandong, river-sea combined transport and serving the industrial corridor in the middle of our province.
(iii) Make a stable cooperative network with a dense network all over the world. Shandong Shipping actively carries out "customized service", and has established long-term and stable cooperative relations with many Fortune 500 companies such as BHP Billiton, Vale, Rheinland Group, Shell Group and COFCO. It has customized the operation of the world's largest 400,000-ton ore carrier and the world's first 250,000-ton ore carrier for Vale and BHP Billiton, and signed long-term leases with COFCO for five 82,000-ton kamsa bulk carriers with multiple operating routes. With high-level management services, the ships operated by the company have established good cooperative relations with major ports in the world. The first batch of "Shandong Dazhi" and "Shandong Renhe" passed the "Zhixin Demonstration Ship" certification, and obtained convenient conditions such as efficient pilotage, priority anchoring and entry and exit of Dongjiakou Port Area of Qingdao Port. The "Shandong Feiyue" emergency support for the fire-fighting incident at Itaguai Port in Brazil has won unanimous praise from the industry and enhanced the company's image in the international shipping market. In April this year, the "Shandong Weihe" successfully completed the task of evacuating 61 China citizens from Sudan, making positive contributions to safeguarding the safety of overseas compatriots and demonstrating the responsibility of Shandong state-owned enterprises.
In the first half of 2023, Shandong Shipping fleet transported 5,235,900 tons of goods for our province, achieving a freight turnover of 73,258 million tons kilometers, which effectively guaranteed the stability of our province's industrial chain. At present, Shandong Shipping is actively promoting projects such as car carriers. After the project is fully implemented, the ability to ensure the stability of the province's supply chain will be further enhanced.
Give full play to the platform effect and drive the development of industrial chain
Shandong Shipping adheres to the ocean shipping logistics chain as a link, gathers the elements of shipping industry, and builds a cooperation platform between the upstream and downstream of the industrial chain such as financial leasing, shipbuilding, shipping services, transportation logistics, and manufacturing enterprises in the province.
(i) Serve the development of manufacturing industry. Based on the production of raw materials and energy needs of enterprises in the province, strengthen cooperation with relevant enterprises in the province. Especially during the outbreak of COVID-19 epidemic, the company fully implemented the spirit of the important instructions of the General Secretary, Xi Jinping, actively carried out the "six guarantees" work, resolutely implemented the "six guarantees" task, and persisted in production and operation, which became an important link connecting the international energy enterprises and the supply and demand ends of the manufacturing industry in the province. Among them, since 2018, the company has cooperated with Wanhua Chemical to transport industrial salt from the west coast of India to China. In the past two years, the transportation volume has exceeded 300,000 tons, and the single operating income has exceeded 8 million US dollars. It was awarded the "Best Delivery Award" at Wanhua Chemical Global Supplier Conference.
(ii) Support the development of equipment manufacturing industry. Based on the advantages of Shandong equipment manufacturing industry, it actively cooperated with shipbuilding enterprises in Shandong province, and successively provided 12 customized ships with 2.38 million deadweight tons to shipbuilding enterprises in Shandong province, with a total contract value exceeding 600 million US dollars. Among them, the company cooperated with Qingdao Beihai Shipbuilding to build four 250,000-ton ore ship projects, which have created a number of records in the shipbuilding history of Shandong Province, such as the largest tonnage of ships and the highest total construction contract. The project ship is the world's first ship type, with independent intellectual property rights. Its safety, energy saving, environmental protection and operational efficiency indicators have reached the leading level of similar ships in the world, and it has been rated as "the best 50 ships in the world", which has effectively promoted the transformation and upgrading of the shipbuilding industry in our province and the development of related industries.
(iii) Promote the development of the shipping service industry. Qingdao International Shipping Center has been successfully built into the first "Ocean+" digital vertical industrial park with full coverage and multiple formats in Shandong Province. Around the four major industrial directions of shipping, trade, finance and innovation, many upstream and downstream enterprises in the shipping industry chain, such as China Classification Society, Norwegian Classification Society, Qingdao Research Institute of Shanghai Maritime University, Delmar International INC, China Shipowners Mutual Insurance Association and Global Rapid Transit, have gathered, and become an important carrier in the core area of Qingdao International Shipping Trade Finance Innovation Center. In 2022, the park achieved an output value of over 12 billion yuan and was awarded the honorary title of "New Landmark of Building Economy in China" by the Ministry of Commerce. At the same time, the company relies on professional and efficient ship management standards to provide ship management services for two bulk carriers in Yantai Jinglu Shipbuilding Industry and ship trial services for Qingdao North Ship Shipbuilding.
The shipping finance section of the company co-ordinates the two markets of ship operating leasing and financial leasing. The proportion of ship leasing business has increased year by year, and the market activity, popularity and influence have been continuously improved. It was awarded the AA main credit rating and the "China Maritime Finance Leading Star Award-Innovation Award" for its high-quality projects. At the same time, with the breakthrough of "deepening the customers of provincial state-owned enterprises and deepening the incremental market in the province", we have given full play to business advantages such as financial leasing and commercial factoring, and provided a total of 423 million yuan of financial support for enterprises in the province.