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3rd Convention between Carriers and Ports From “Consensus” to “Initiative”: 20 Carriers and Ports Join Hands to Usher in a New Era

Date:2019-01-29 Read times: font size:[ L M S ]

Hosted by COSCO SHIPPING, the Convention between Carriers and Ports for OCEAN Alliance 2019 was convened in Boao, Hainan Province on January 17. Meanwhile, 20 carriers and ports held a forum on carriers and ports partnership with the theme of “New Trade Pattern, New Era of Carriers and Ports” and jointly released the “Boao Initiative”. Multiple cooperation agreements were signed in some other parallel activities.

Mr. Shen Xiaoming, Governor of Hainan Province, delivered a speech. He said Hainan is making efforts to build a pilot free trade zone and steadily advancing the construction of a free trade port with Chinese characteristics. In addition, the island, which is well-placed with favorable port conditions, will focus on shipping and port development.

New Trade Pattern, New Era of Carriers and Ports: Boao Initiative

On the morning of January 17, a symposium on carriers and ports partnership was convened in Boao, Hainan Province. With the theme of “New Trade Pattern, New Era of Carriers and Ports”, the event gathered 20 carriers and ports, including COSCO SHIPPING, CMA CGM, Evergreen, OOCL, Shanghai Port Group, Zhejiang Sea Port/Ningbo Zhoushan Port, Qingdao Port Group, Guangzhou Port Group, Tianjin Port Group, Xiamen Port Holding Group, Port of Dalian, Lianyungang Port Group, Jiangsu Port Group, Anhui Port and Shipping Group, Beibu Gulf Port Group, Hainan Harbor & Shipping, Zhuhai Port Holdings, Hutchison Ports, PSA and DP WORLD.
It was agreed that since the “Boao Declaration” and “Boao Consensus” were released during the previous sessions in 2016 and 2017, carriers and ports partnership has been expanding with fruitful results, playing an important role in guiding the healthy and sustainable development of port and shipping industries. Revolving around the theme for this year, the participants discussed the new situations, models and measures for their future partnership and jointly released “New Trade Pattern, New Era of Carriers and Ports: Boao Initiative”.
To jointly safeguard a rules-based free trade system with a more open mind and concrete measures to facilitate global trade; to actively participate in China’s opening up, to share the opportunity in China’s economic development , and to jointly promote an open world economy.
To actively fulfill social responsibility for sustainable development such as low-carbon environmental protection, energy conservation and emission reduction; to extensively apply new technologies and products in energy conservation, emission reduction and clean energy, to comprehensively implement emission reduction regulations such as “IMO 2020”, China’s “Implementation Plan on ESCA”; to vigorously develop green shipping, smart ports, and intelligent ships.
To vigorously promote and adopt new technologies such as big data, artificial intelligence, cloud technology, and blockchain to further optimize goods circulation and continuously improve the efficiency and service quality of supply chain operation.

The meeting was attended by Capt. Xu Lirong, Chairman of COSCO SHIPPING, Mr. Chen Xuyuan, Chairman of Shanghai Port Group, Mr. Li Fengli, Chairman of Qingdao Port Group, Mr. Chen Zhiping, Chairman of Xiamen Port Holding Group, Mr. Ding Qingling, Chairman of Anhui Port and Shipping Group, Mr. Lin Jian, Chairman of Hainan Harbor & Shipping, Mr. Gong Liming, Director of Zhejiang Sea Port and President of Ningbo Zhoushan Port, Mr. Cai Rongguo, President of Jiangsu Port Group, Mr. Li Yibo, President of Guangzhou Port Group, Mr. Xu Song, President of Port of Dalian, Mr. Zhu Xiangyang, President of Lianyungang Port Group, Mr. Ou Huisheng, Chairman of Zhuhai Port Holdings, Mr. Wang Honghai, Chief Economist of Tianjin Port Group, Mr. Xie Yi, Vice President of Beibu Gulf Port Group, Mr. Rodolphe Saadé, Chairman of the Board and CEO of CMA CGM, Mr. Tan Chong Meng, Group CEO of PSA, Mr. Lawrence Lee, President of Evergreen, Mr. Eric Ip, Managing Director of Hutchison Ports, Mr. Andy Tung, Co-CEO of OOCL, and Mr. Matthew Leech, COO of DP WORLD. It was chaired by Mr. Huang Xiaowen, Executive Vice President of COSCO SHIPPING. Mr. Wang Haimin, Managing Director of COSCO SHIPPING Lines, and Mr. Zhang Wei, Vice Chairman and Managing Director of COSCO SHIPPING Ports were also present at the event.

According to Capt. Xu Lirong, the year 2018 has witnessed open and win-win cooperation between carriers and ports. With the support from ports all over the world, the OCEAN Alliance – the world’s largest industry alliance – has been running smoothly. Concerning the future partnership between carriers and ports, he suggested more win-win cooperation to achieve greater results. Capt. Xu also forecasted the new trade and economic patterns, and expected carriers and ports partnership to be more solid and practical, with the mission of pursing excellent services.
At the forum, the participants had an in-depth discussion on the achievements of carriers and ports partnership, the new scenarios and ways to deepen their cooperation.

Mr. Chen Xuyuan, Chairman of Shanghai Port Group

The future development of carriers and ports will face both new opportunities and challenges, so cooperation is vital to both sides. Shanghai Port will continuously optimize port service and efficiency, apply the most advanced technologies and establish a new technical operation system to improve port operation. It will also increase communication with carriers to offer a better platform for shipping companies and clients.

Mr. Li Fengli, Chairman of Qingdao Port Group

In the new era, coordinated development of land and sea services and digital shipping are inevitable trends for both carriers and ports, which shall play their part well and strengthen communication while improving efficiency and customer service. Together, we can create a new trade pattern and usher in a new era of carriers and ports.

Mr. Chen Zhiping, Chairman of Xiamen Port Holding Group

Given that Fujian is a pivotal point along the Maritime Silk Road, Xiamen Port has cut its logistics cost and cemented its service advantage through service efficiency commitments, the use of information technology and smart port construction. Carriers and ports should step up cooperation and come up with a set of standards and business models at an earlier date to improve the business environment at ports and play an exemplary role in seeking common development. 

Mr. Rodolphe Saadé, Chairman of the Board and CEO of CMA CGM

CMA CGM is willing to promote cooperation between carries and ports, pursue operational excellence, optimize operational efficiency, make rational plans and increase flexibility to meet customers’ expectations. It will also optimize capacity through continuous innovations and boost the efficiency of the entire ecosystem with digital technology and innovative business models. Service quality will be improved across the board to better serve customers.

Mr. Tan Chong Meng, Group CEO of PSA

PSA will improve support in automation and establish new operation modes to follow the trend of large-sized vessels and meet various needs. It will expand cooperation with e-commerce to lower the logistic cost, deepen its partnership with the OCEAN Alliance and take advantage of artificial intelligence and digital technology to improve service and win more new clients.

Mr. Eric Ip, Managing Director of Hutchison Ports

Hutchison Ports in Hong Kong have shared the new pattern through closer cooperation. Currently, three terminals have achieved significant results in cost reduction and rights and interests protection by sharing resources, including berths and systems. We hope their new business model can be extended to more overseas terminals.

Mr. Matthew Leech, COO of DP WORLD

Through integration, DPW will keep improving efficiency, adopt innovative methods and alter the modes of management. DPW expects to step up win-win cooperation with other companies to further meet demand in the global supply chain, and better serve global trade and clients.

Mr. Lawrence Lee, President of Evergreen

A top priority of EMC is fleet renewal – to replace some old vessels with new ones. New vessels will be mostly delivered in 2020 and 2021 and serve the Transpacific routes.

Mr. Andy Tung, Co-CEO of OOCL

In addition to a more complete shipping network and a higher port efficiency, demands for the feeder network and transit operations will also increase under the new pattern. Customers need a faster and more transparent supply chain, which means we need to establish a data platform to improve the quality of container transportation supply chain.

Mr. Ding Qingling, Chairman of Anhui Port and Shipping Group

We will promote the integrated development of carriers and ports through closer cooperation; leverage our respective advantages to improve the specialized transportation system of ports. We will encourage industry leaders to play a leading role in breaking the bottleneck of direct transport between river and sea, while jointly building an information collection platform for win-win outcomes.

Mr. Lin Jian, Chairman of Hainan Harbor & Shipping

I hope carriers and ports can join hands to build Hainan into a key gateway to the Indian and Pacific Oceans and a container transit hub, and to develop port-based industries in the province.

Mr. Gong Liming, Director of Zhejiang Sea Port and President of Ningbo Zhoushan Port

Ports should continue to emphasize service efficiency and strive to offer more efficient and convenient services of higher quality. Responding to the trend of large-sized vessels, terminal facilities also should be upgraded and intelligent terminals be built to meet demand.

Mr. Li Yibo, Chairman of Guangzhou Port Group

Faced with a complex development environment, carriers and ports should jointly build an energy-saving, efficient and environmentally friendly logistics network; apply new technology to accelerate smart port construction; promote the high-quality development of port companies and inject vitality into old ports.

Mr. Cai Rongguo, President of Jiangsu Port Group

It is imperative to further integrate port resources to develop specialized and intelligent port and shipping clusters; to link sea ports and river ports with big data and information technology to achieve resource sharing and better support the development of the Yangtze River Economic Belt.

Mr. Zhu Xiangyang, President of Lianyungang Port Group

Providing convenient logistics conditions for some underdeveloped regions in China and building an integrated logistics network to help address unbalanced regional development is what carriers and ports should consider and for which actions should be taken under the new pattern.

Mr. Wang Honghai, Chief Economist of Tianjin Port Group

It is important to enhance the market competiveness of carriers and ports by jointly developing the inland logistics supply chain. Carriers and ports can carry out deeper cooperation.

Mr. Xu Song, President of Port of Dalian

GSBN will become more dynamic by strengthening links with the port system.

Mr. Ou Huisheng, Chairman of Zhuhai Port Holdings

Carriers and ports can tap the value behind the logistics supply chain and make full use of favorable policies, such as opening of the Hong Kong-Zhuhai-Macau Bridge and construction of the Guangdong-Hong Kong-Macao Greater Bay Area, to develop their logistics supply chain.

Mr. Xie Yi, Vice President of Beibu Gulf Port Group

I look forward to closer cooperation between carriers and ports in building the New International Land-Sea Trade Corridor to serve the Belt and Road Initiative.

Mr. Wang Haimin, Managing Director of COSCO SHIPPING Lines

In 2019, we will further enhance our operational efficiency through cooperation with ports and pay more attention to service improvement of the OCEAN Alliance. Digitalization represents a new trend in carriers and ports partnership. With the help of big data, ports, clients and carriers are tied together and will grow together.

Mr. Zhang Wei, Vice Chairman and Managing Director of COSCO SHIPPING Ports

Carriers and ports partnership, cooperation between ports and China’s integration into the world are certain in the future. COSCO SHIPPING Ports is committed to serving as a platform for advancing carriers and ports partnership and cooperation between ports, and facilitating China’s integration into the world.

Signing ceremonies were also held during the forum

COSCO SHIPPING Holdings, OOCL, and COSCO SHIPPING Lines signed MOUs on carriers and ports partnership with Shanghai Port Group, Qingdao Port Group and Tianjin Port Group, respectively.

The signing of MOUs will strengthen the cooperation between COSCO SHIPPING and Shanghai Port Group, Qingdao Port Group and Tianjin Port Group, provide essential support for dual brand operation of COSCO SHIPPING Lines, and promote a return to the primary shipping service.

In addition, COSCO SHIPPING Ports signed an official agreement with PSA for the addition of two new berths at the COSCO-PSA Terminal (CPT).

The two new berths have commenced official operation from January 2019 and enabled CPT to equip with five mega-vessel berths, increasing its annual handling capacity from previously 3 million TEU to about 4.85 million TEU.

Full text of Boao Initiative

New Trade Pattern, New Era of Carriers and Ports: Boao Initiative
Announced by: 
All parties presented at Forum on “New Trade Pattern, New Era of Carriers and Ports”
January 17, 2019
On January 17, 2019, the Forum on "New Trade Pattern, New Era of Carriers and Ports" was convened in Boao, Hainan Province, China. The Forum was attended by senior representatives of 20 carriers and ports (collectively referred to as ‘All Parties’), including COSCO SHIPPING, CMA CGM, Evergreen, OOCL, Shanghai Port Group, Zhejiang Sea Port/Ningbo Zhoushan Port, Qingdao Port Group, Guangzhou Port Group, Tianjin Port Group, Xiamen Port Holding Group, Port of Dalian, Lianyungang Port Group, Jiangsu Port Group, Anhui Port and Shipping Group, Beibu Gulf Port Group, Hainan Harbor & Shipping, Zhuhai Port Holdings, Hutchison Ports, PSA, and DP World.
All parties agreed that global shipping and port industries are facing a complex and volatile external environment. On one hand, global economy recovery has slowed down and world trade pattern has changed profoundly; on the other hand, global shipping and port industries are undergoing new technological transformation driven by blockchain, big data, cloud technology, artificial intelligence, etc., while facing challenges posed by new regulations such as sulfur cap, ballast water management, and "De-carbonization 2050". Looking ahead, all parties agreed that, the trend of economic globalization and trade facilitation will not change; the trend of China's economic restructuring and stability with progress will not change; no matter how many new technologies and new rules are promoted and adopted, improving service quality, as core mission of the industry, will not change. Global shipping and port industries have entered a new era led by new technologies, characterized by service quality improvement and aimed at synergetic development.
In order to further grasp the development opportunities of the new era, actively respond to new challenges, and promote future cooperation between carriers and ports, all parties hereby jointly launch the Boao Initiative. All parties call upon participants of global shipping and port industries:
I. At a time when global economy and trade growth are full of uncertainties, as the beneficiaries and champions of economic globalization and trade liberalization, to jointly safeguard a rules-based free trade system with a more open mind and concrete measures to facilitate global trade; to actively participate in China's opening up, seize opportunities at a time when China increases imports, encourages investments, and is dedicated to building the Belt and Road and the New International Land-Sea Trade Corridor, to share China's economic development dividend, and to jointly promote an open world economy.
II. To actively fulfill social responsibility for sustainable development such as low-carbon environmental protection, energy conservation and emission reduction; to extensively apply new technologies and products in energy conservation, emission reduction and clean energy, to comprehensively implement emission reduction regulations such as "IMO 2020", China's "Implementation Plan on ESCA"; to vigorously develop green shipping, smart ports, and intelligent ships; and to play a leading and demonstrative role in energy conservation, environmental protection and technological innovation.
III. To vigorously promote and adopt new technologies such as big data, artificial intelligence, cloud technology, and blockchain to further optimize goods circulation and continuously improve the efficiency and service quality of supply chain operation. To achieve this, we sincerely welcome all participants in the industries, including other carriers and ports, port service institutions, consignees and consignors, logistics service providers and their agencies, to join the industry blockchain alliance, the Global Shipping Business Network (GSBN) to jointly discuss digital service process of the industries, which will drive collaborative innovation and digital transformation within the industry.
New trade pattern drives new cooperation, which in turn creates a new future. All parties at the meeting unanimously appeal to global shipping and port industries to uphold concept of win-win and benefit-sharing, and continuously enrich and deepen practical cooperation at all levels in the industry. In the constantly changing world of global economy, trade and industry pattern, let us work together in pursuit of excellence in service, towards a bright new future for the synergetic development of carriers and ports.

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