China believes in Wilhelmshaven
China Logistics first expansion into Europe will take it to the JadeWeserPort in the German state of Lower Saxony. The ambitions of the state-owned company are almost as great as the hopes of the port operator.
The news is quite a boon for the JadeWeserPort (JWP). The company China Logistics, a subsidiary of the state-owned Chengtong Holding Group, plans to invest around EUR 100 million in a new logistics centre in the port. The container hub in Wilhelmshaven suffered a decline in container throughput of around 2.5% last year, and is now trying to once again improve its position vis-à-vis its competitors in Europe’s Northern Range.
China Logistics has signed a 99-year lease for building work on a 20 ha site in the gateway. The firm will construct its ‘China Logistics-Wilhelmshaven Hub’ there, covering approximately 40,000 m² of warehousing and 110,000 m² of uncovered storage space. Another 20,000 m² hall can be added later.
Andreas Bullwinkel, managing director of the company Container Terminal Wilhelmshaven JadeWeserPort-Marketing GmbH & Co KG, said that extensive discussions were required to prepare this latest contract. “We’ve been negotiating with our new Chinese partners for more than five and a half years now, and are very pleased that in the end we were able to convince them of Wilhelmshaven’s benefits.” This is China Logistics’ first move into Europe. Before the logistics company chose the only container deepwater port in Germany, it also assessed other ports, including Antwerp (Belgium).
Large lines will have to add calls
China Logistics chose the northern German hub to store Chinese goods imported into Europe, and then distribute them from there. The company will focus on automotive components, stones, food and consumer goods.
In the long term, China Logistics plans to handle around 100,000 teu annually in Wilhelmshaven. This would represent a huge boost for the port, which currently handles around 640,000 teu a year, and will probably only come off if large shipping lines increase their calls in the gateway. This is entirely possible; Chengtong has a stake in Cosco too. In addition to maritime transport, China Logistics also wants to bank on rail links; it is also planning to have an on-site rail link.
Competition for Duisport
It remains open to question whether this move will entice enough freight trains from China to Wilhelmshaven, however. Duisport already has a strong position in this field, welcoming around 35 trains a week from the Far East. The German inland port also has good relations with players in the Chinese provinces.
Now the JWP logistics facility has to be built first, however. The managers expect building work to start at the end of 2020 or early in 2021, with construction set for nine months.
