[photopress:nansha.jpg,full,alignright]It comes as a surprise to think of China actively looking for investors. A high-level delegation from Guangzhou has been to Singapore to attract local companies to invest in the Nansha Development Zone. Led by Vice-Mayor Chen Mingde of the Guangzhou Municipal Government, the Chinese delegation promoted Guangzhou as a new petrochemicals and logistics hub.
The Guangzhou government is planning to invest $1.22 billion in Nansha, to promote the area as a petrochemicals, oil logistics, and automobile hub. Up to 70 percent of fuel oil to China, is shipped through Guangzhou and the Nansha Development Zone is being set up to cater for the massive growth potential.
By 2010, Guangdong province is projected to have an annual oil refining capacity of 30 million tons, and an annual ethylene output of 2 million tons.
Sun Lei, Director General, Guangzhou Municipal Board for International Investment, said, ‘In the next couple of years, Nansha will be a very important petrochemical, the automobile. In the recent three years, three Japanese giants – Toyota, Honda and Nissan,came to Guangzhou together.’
The Hong Kong-listed Titan Petrochemicals Group has invested $250m in an oil storage terminal in Nansha, and it will launch the Huanan Petrochemicals Exchange, an electronic commodities trading platform, in the first half of next year.
Barry Cheung, Chief Executive, Titan Petrochemicals Group, said, ‘I think it’s several things – the rapidly growing demand for oil, and also a lack of suitable infrastructures. Many of the existing terminals are not suitable for large-scale imports. They cannot handle large tankers. When you want to transport oil efficiently, you want to use big tankers, and we’re providing the kind of facilities that China needs.’
Source: Channel News Asia
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