Changpeng WanRecently, more than 70 organizations from across Zhejiang and beyond gathered in Ningbo to discuss how inland companies can efficiently access global markets. Attendees came from as far as Chongqing and Xi’an, and as near as Hefei, Shangrao, and inland Zhejiang cities—all drawn by the allure of Ningbo-Zhoushan Port, the world’s largest port by cargo throughput. The central question: how can goods be transported from inland regions to the coast more quickly, affordably, and reliably to board ocean-going vessels? Situated in the Yangtze River Delta, Ningbo-Zhoushan Port lies just 100 kilometers from Shanghai Port, another global giant. This rare proximity has led to intense competition, especially over cargo sources. To stand out, Ningbo is aggressively expanding its reach inland. At the meeting, the Zhejiang Provincial Department of Ocean Economy unveiled an initiative to establish a seven-party coordination mechanism involving customs, border inspection, maritime safety, port authorities, railways, local governments, and enterprises. This marks the official launch of an efficient, multi-stakeholder system aimed at boosting connectivity. But Zhejiang’s ambitions extend beyond logistics. The initiative also proposes cultivating a trillion-yuan industrial corridor integrating land and sea resources. How vast is the hinterland that anchors this port? What impacts will this envisioned corridor have on the regions it connects? Strategic Position and Competitive Landscape Ningbo-Zhoushan Port sits at the intersection of China’s north-south coastline and the Yangtze River waterway, a T-shaped structure that offers exceptional maritime advantages. It boasts over 8,000 square kilometers of sea area, a coastline stretching 1,678 kilometers, and more than 600 islands. As a natural heavyweight, the port has topped global cargo throughput for 16 consecutive years. In container throughput, however, it ranks third globally, with 39.3 million TEUs in 2024, while Shanghai Port became the world’s first to exceed 50 million TEUs. As the saying goes, ‘A port’s size depends on cargo volume; its strength depends on containers.’ In August this year, Ningbo-Zhoushan Port set a monthly record by handling over 4 million TEUs. If this growth continues, it could also surpass 50 million TEUs by 2025. Achieving this hasn’t been easy. As Zeng Gang, Dean of the Institute of Urban Development at East China Normal University, noted, ‘In China’s port clusters, compared to the Pearl River Delta and North China, the Yangtze River Delta has numerous ports with poor coordination, leading to more competition than cooperation.’ While Ningbo-Zhoushan Port’s massive scale insulates it from smaller rivals, the intense competition with nearby Shanghai Port—only 100 kilometers away—poses a significant challenge. Shanghai Port’s container business relies heavily on local demand, driven by high-end services and clients offering higher freight value-added. In contrast, Ningbo-Zhoushan Port cannot rely solely on local demand to sustain its scale. It lags in hinterland connectivity and shipping services, necessitating expansion inland. Expanding Through Sea-Rail Intermodal Transport To enhance internal and external connectivity, Ningbo began exploring sea-rail intermodal transport as early as 2004, combining rail and water transport to overcome high road transportation costs. In 2009, the first scheduled sea-rail intermodal service between Ningbo and Yiwu marked the start of scaled, regular operations. While sea-rail intermodal transport is now common—with river ports like Wuhan and Nanjing leveraging rail networks and the Yangtze River—Ningbo has been a step ahead. In 2016, when Yiwu Port was integrated into Zhejiang Port Group, Ningbo-Zhoushan Port and Yiwu International Land Port began coordinated development. Effectively, Ningbo-Zhoushan Port relocated its ‘sixth port zone’ to Yiwu, moving customs, port, and shipping services inland. This allowed Yiwu-issued bills of lading to be directly used overseas, saving hundreds of yuan per container and significantly speeding up clearance. Extending Reach to Inland Hinterlands Not limited to Zhejiang, the port is stretching its reach deeper inland. On September 4, the 70-plus organizations met in Ningbo for the ‘Land-Sea Integration and Two-Way Opening’ forum, discussing strategies to help inland enterprises access global markets efficiently. This broad coalition spans great distances and involves complex processes, requiring seamless coordination among customs, border inspection, maritime safety, ports, railways, local governments, and businesses. This major push is timely. As global supply chains reconfigure, inland regions are seeing growing foreign trade logistics demand, heightening the need for coastal ports to expand their hinterland reach. Data shows that in the first seven months of this year, central and western China led the nation in import-export growth. Six central provinces saw imports and exports hit 2.2 trillion yuan, up 11.6% year-on-year, a record high. All twelve western provinces and regions posted growth, with total trade reaching 2.5 trillion yuan, a 10.5% increase. Facing these opportunities and challenges, Ningbo is proactive. Before the large-scale multilateral mechanism, smaller bilateral city partnerships were already testing the waters. In November last year, the Xi’an International Port—Ningbo-Zhoushan Port direct sea-rail intermodal service launched, making Xi’an the first out-of-province site for the ‘Zhejiang e-Port Link’ system. In May this year, a promotional event for the ‘Nanchang-Ningbo’ sea-rail intermodal service was held in Nanchang. In July, Ningbo-Zhoushan Port held a policy briefing in Hefei to expand export logistics channels for local businesses. A key enabler frequently mentioned is the ‘Zhejiang e-Port Link’ system. This innovation establishes a collaborative mechanism among customs, ports, railways, and local governments. For customs, it offers ‘single declaration, single inspection, single release’ for efficient clearance, reducing container rejection and returns. For ports, functions like pre-entry and pre-release are moved inland, so goods entering inland stations are treated as already in Ningbo-Zhoushan Port, ensuring on-schedule shipments. For shipping, services like empty container pickup and full documentation are available inland, letting businesses enjoy ‘as good as being at the seaport’ efficiency locally. Currently, ‘Zhejiang e-Port Link’ covers 24 stations in 20 cities nationwide, cutting average empty container wait times by two days and achieving on-schedule shipment rates above 95%. Luo Song, Chief Engineer of the Zhejiang Provincial Department of Ocean Economy, stated that for ‘hard connectivity,’ Zhejiang aims to co-build dry ports with inland partners, accelerating layout along coastal, rail, river, and waterway hinterlands while relocating port functions inland. For ‘soft connectivity,’ the focus is on innovating systems, services, and processes to break down barriers between regions, departments, and companies, enabling seamless logistics. Envisioning a Trillion-Yuan Industrial Corridor In the broader vision, this land-sea corridor isn’t just a logistics route—it’s the foundation for a trillion-yuan industrial corridor integrating land and sea resources. The initiative calls for shared open platforms, regular high-level meetings to coordinate major issues, and building a logistics community where ‘inland ports function like seaports.’ It also advocates for institutional innovation to create a reform pilot zone and shared development opportunities to cultivate this massive corridor. ‘We aim for multi-dimensional synergy in economy, trade, and industry, deepening inland cities’ integration with global markets,’ Luo Song emphasized. The multilateral mechanism will also foster government-business and coastal-inland collaboration, promoting cooperation between Ningbo-Zhoushan Port and inland cities in key areas and projects, forming a ‘port + channel + industry’ development model. Analyses have pointed out that compared to Ningbo-Zhoushan Port’s natural advantages, Shanghai Port’s success stems from ‘acquired system配置.’ Its ‘port-industry-city’ integration model makes it not just a logistics hub but a connector for industry and consumption, linking the city to the world. Within Zhejiang, some regions have already made strides. Huzhou, connected by seven high-grade waterways within 200-plus kilometers of Ningbo-Zhoushan Port, has taken the lead in developing advanced port-front zones. Anji’s green home furnishing industry is a典型 export-oriented sector, with over 1,700 related enterprises accounting for about 13% of Huzhou’s exports. High-end equipment and new metal materials, key port-front industries, leverage water transport advantages—Deqing’s Linhang Logistics Park has become the Yangtze Delta’s largest steel distribution center, hosting over 100 steel traders and handling over 8 million tons annually. Moreover, the land-sea corridor benefits landlocked regions too. Zhejiang Port Group partnered with Xuancheng, Anhui, to build Xuancheng International Land Port, creating a logistics hub to support high-level industrial clustering. Plans include integrated functions like logistics warehousing, container pickup/return, and consolidation, synergizing with Xuancheng Comprehensive Bonded Zone and Xuancheng Port to form a multi-dimensional transport system. This international logistics platform and regional hub aims to cut costs and boost industry. With Ningbo-Zhoushan Port as a ‘super gateway’ and local efforts to develop port-driven industries, Xuancheng International Land Port has grown from empty land into a regional sea-rail intermodal center, serving over 300 foreign trade enterprises across nine Anhui cities and boosting the city’s total import-export volume by over 20% last year. Next, Zhejiang will collaborate with inland cities to build more dry ports, enhance service capabilities, create a ‘lowest-cost, highest-efficiency, best-service’ port business environment, facilitate inland cargo clearance, and establish a multilateral ‘customs-border inspection-maritime-port-railway-local government-enterprise’ mechanism for coordinated coastal-inland development. This trillion-yuan industrial corridor represents a transformative opportunity for regional economic integration, leveraging the port’s strengths to drive growth, reduce logistics costs, and enhance global competitiveness. Businesses along the corridor should explore partnerships and logistics optimizations to capitalize on these developments, while policymakers must continue fostering innovation and collaboration to realize this vision fully.
