Dalian Jifa Bohai Rim Container Lines (DBR), an affiliate company of Dalian Port Group, is looking to further expand its business with eyes on the international market.
The company mainly operates feeder shipping services in the Bohai Rim region. It also provides international feeder services to Japanese ports including Hakata, Moji, Nakanoseiki.
Dalian Port, an important shipping gateway in northeast China, has been making efforts to expand business through its hinterland strategy in recent years in order to deal with the shipping downturn.
The port forecasts that it will handle 440m tons of cargo and complete a container throughput of 10.23m teu this year.
“With the fast development of Dalian Port’s hinterland, we have also been expanding our capacity and enhancing our services in order to meet the growing demand,” says Wang Jun, general manager of DBR.
Currently the company operates a fleet of eight feeder containerships and has established a feeder network connecting most of the ports in the Bohai Rim region.
This year, DBR has further completed its service network by adding a service to Huludao Port in Liaoning.
“We have seen great opportunities from the development of the hinterland economy in Huludao. Many major enterprises including PetroChina, China Metallurgical Group, Siemens have just set up there. The seamless transit service has made more shippers from the region choose Dalian Port as their major export port,” Wang says.
“We are also trying to increase the percentage of domestic container transit volumes in our business,” Wang says, adding that the domestic container transit business has become of a new growth point for Dalian Port.
DBR now provides domestic shipping service from Bohai Rim ports including to southern ports including Xiamen and Guangzhou.
“Next step we are going to increase the density of our domestic container shipping routes,” Wang reveals.
Dalian Jifa Ship Management, a joint venture between DBR and its parent Dalian Port Group, signed shipbuilding contracts with CSIC-affiliated Shanhaiguan Shipbuilding Industry in September for the construction of two 1,100 teu feeder containerships plus four options. The first two vessels are expected to be deployed on the domestic coastal and Yangtze River routes upon delivery delivered in 2017.
According to Wang, the company is looking to charter the first two vessels from the new order to another domestic containership operator and is currently in talks with a few companies, and the company will execute the options in the order if the chartering contract is finalised.
Recently Dalian Port Group made a capital replenishment of RMB100m into DBR to support the development of the company.
According to Wang, DBR is also eyeing expanding its service network to Mongolia and Russia with the support of Dalian Jifa Logistics, a sister firm of the company and its parent Dalian Port.
This article first appeared in the latest issue of SinoShip magazine, published today ahead of next week’s Marintec China exhibition. Readers can access the full magazine online for free by clicking here.