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Investment Environments
The Petrochemical Industrial Investment Environments of
Dongying Port and Dongying Port Economic Development Zone

Investment Environments

  currengtly position: Home >> The Petrochemical Industrial Investment Environments of
                     Dongying Port and Dongying Port Economic Development Zone

Dongying Port is a national first-class open port, built in 1997 and now with 14 berths. It is lied in the intersection part of the Bohai-rim Economic Circle and the Yellow River Economic Belt; it is lied in the just right position of Bohai-rim’s port layout, the best sea passage of Shandong, Shanxi, and parts of Hebei Province, and also the bridge tower for Dongying city to integrate into the Bohai-rim and walk up to the world. Since 2005, on the basis of the original Dongying Port, we have expanded two 30,000 tons multi-purpose docks and 50,000 tons liquid chemical dock. At present, we are undergoing the first phase of the expansion project with an investment of 1.7 billion yuan, and we mainly build two 30,000 tons multi-purpose docks and a bridge approach which is to be put into use by the end of this year. Two 50,000 tons liquid chemical docks are trying to the get the approval. From 2010, we will gradually build container terminal, coal terminal, ore terminal and single point mooring oil terminal.
Dongying Port Economic Development Zone is a provincial-level economic development zone approved by Shandong Provincial Government; it has 232 square kilometers of layout area and 102 square kilometers of starting area, which is divided into six functional areas of storage and logistics, chemistry, processing and manufacturing, high technology, official administration, and life and business. The developing objective of Dongying Port Economic Development Zone is: effectively change the costal, land, resources, and port advantages into developing advantages, gradually build Dongying Port into regional and integrated deep water port which has port industries, logistics, and warehouse supporting facilities, develop Dongying Port Economic Development Zone into Bohai-rim important collecting area of high-efficient ecological heavy chemical industries and high-efficient clean energy supplying base, and eventually build into a modern petrochemical city, ecological city, and new port city.
The main layout range of chemical industrial collecting areas of Dongying Port Economic Development Zone: within the area to the north of the north route and west of Dongying-Port highway, there are 60 square kilometers of layout area. We focus on the development of petrochemical, marine chemical, salt chemical, and coal chemical industries. The developing idea is: actively promote both domestic and foreign large petrochemical groups to invest in our development zone; integrate local refining enterprises to upgrade refining capacities and levels in Dongying Port and develop high-grade green-clean gasoline and diesel oil; stress on the constructions of catalytic cracking, catalytic reforming and other oil deep processing projects, positively develop chemical fiber, recycled plastics, resins, chemical additives, rubber and other downstream products. In accordance with ideas of “strengthen the upper and lower reaches, extend the industrial chains, and enhance value-added”, set large-scaled, intensive and sophisticated as the direction, strengthen the industrial supporting facilities, extend the industrial chains, form chemical industrial clusters to construct national-grade chemical industrial base.
There are seven comparative advantages to develop petrochemical industries in Dongying Port Economic Development Zone:
I. Location advantage. The Shandong province governs city-Dongying city, where Dongying port locates in. Dongying city has two districts and three counties under its jurisdiction, with a total land area of 8,053 square kilometers and a population of 1.82 million people; it is also the most abundant region in terms of land resources among eastern costal regions of China. Dongying city is the home to Shengli Oilfield-the second largest oilfield of China, China Petroleum University-the tallest university of national petroleum profession and the Yellow River Delta Producing Base of Ji’nan Military Area. It is the connecting part of the Bohai-rim Economic Zone and the Yellow River Economic Belt. With Beijing-Tianjin-Tanggu to its north and Shandong Peninsula to its south, Dongying city’s region advantage is obvious. Dongying Port lies in the central part of the Yellow River Delta and Bohai-rim area; it is the meeting point of the Bohai-rim Economic Zone and the Yellow River Economic Belt, with favorable location advantages of two-way radiation advantages, both domestic and abroad. Nowadays, on the Bohai Sea 700-kilometer-long coastline which goes from Longkou toward the north to Zhangwei new river along three cities, there is neither big nor medium-sized port. Dongying Port is lied in the just right position of Bohai-rim’s port layout, improves the port layout of Bohai Sea’s southwest shore, and brings its two fans of sea and land radiation functions into play.
II. Good deep-water port’s resource advantage. Dongying Port waters have small average tidal range only 0.76 meters and intensive isobaths; the -10 meters isobath is 6 kilometers offshore and -20 meters isobath 17 kilometers offshore. It is the nearest location from the deep sea on the muddy coastline of the Bohai Bay, which is the natural favorable site to build 10,000-ton-grade deep water port. When the 50,000-ton-grade liquid chemical terminal of Dongying Port are put into use, the import capacity of crude oil can reach 10 million tons, with the dual functions of the recent petrochemical raw materials import attractions and products outputs. In the long-term planning, Dongying Port will build above 250,000-ton-grade single point mooring oil terminal and construct large-scaled petrochemical projects in Dongying Port Economic Development Zone.
III. “Blending the port and the district into one” developing advantage. Dongying Port Economic Development Zone relies on Dongying Port to construct, the port drives the district, the district promotes the port, and the two link together. This kind of construction mode is rare in the coastal areas of the country. Dongying Port can provide a large-scaled excellent circulation port, quickly build the harbor logistics network that connect the land with the sea and has rapid access, create a powerful resource accumulating ability to promote the rapid development of the upon-port zone.
IV. Developing land space advantage. Dongying Port has vast land reserves, which has 260 square kilometers of total planning area and 466 square kilometers of sustainable developing area. The 102 square kilometers of starting area for local land use planning has all been recovered. Within Dongying Port Economic Development Zone, there is low-lying alkali land that is not yet reclaimed and serious pickled soil, which is most appropriate to lay chemical industries, energy, and other heavy chemical industrial projects. In the circumstances that China’s coastal land resources are very tense, especially in the circumstances that the nation strictly implements the land management system, the land resources of Dongying city are more evident.
V. Transportation and other infrastructure advantages. Dongying Port and Dongying Port Economic Development Zone have very convenient aquatic transportation. It is 90 sea miles away from Tianjin Port in the north, 72 sea miles to Longkou Port in the east, and 122 sea miles to Dalian Port; out of Bohai Gulf, it connects with both home and abroad ports. The expressway leading to the port has connected with Jinan–Qingdao expressway, and there is a high-grade highway conjunction with capital city-Beijing, Jinan, Tianjin, Qingdao, and other big cities. The provincial government is accelerating the constructions of the whole province’s coastal highways, and Dongying Port will connect with the province’s ports and Tianjin Costal New Area. As to the railway, we speed up the leading-to-the-port railway project, and the port district will become an important station of the Bohai-rim Railroad Passage. The air transportation is very convenient. Dongying airport will become from Class 4C to 4D; at present, there are airlines direct to Beijing, Shanghai, and other big and medium cities, and we will successively open the airlines to Haikou, Shenzhen, Shenyang, Ha’erbin and other cities and also international airlines to Inchon, etc.
VI. Strong petrochemical industrial base and adequate human resources. The highest annual crude oil output of Shengli Oilfield has reached 33.5519 million tons, and 80% of the geological oil reserves and 85% of productions of Shengli Oilfield are in Dongying City. In recent years, the petrochemical industries in Dongying Port’s hinterland flourish, and by the end of 2006, the crude oil processing capacity of petrochemical enterprises in Dongying City has reached 15.9 million tons/year, and is expected to reach 30 million tons in 2010. There are a large number of personnel and technical supporters for developing petrochemical industries in Dongying Port. China Petroleum University in Dongying City has an abundance of high-quality personnel which can provide strong support to technical and management personnel for local projects. The Shengli Oilfield and local petrochemical enterprises have a large number of talents with proficient professional skills and abundant management experience, and can provide skilled staff for the local petrochemical projects. Dongying city has 10.3 technological personnel/per 10,000 people, which are more than 2.8 people compared with the average level in Shandong Province; there are 110,000 various technical staff, among whom there are 30,000 people with higher than Intermediate Technology Title, and the proportion was higher than the national average.
VII. Policy and environmental advantages. Shandong Provincial Party Committee and Government propose to speed up the construction of the Yellow River Delta High-efficient Ecological Economy, and Dongying Port Economic Development Zone is identified as the breakthrough point and leader. Shandong Provincial Government brings forward the following idea in the regional development plan: rely on the port and Shengli Oilfield to form a large petrochemical industry base in Dongying city. The Municipal Government confers Dongying Port Economic Development Zone with municipal economic management authority and administrative authority whose functions, organizations and personnel are in place and under the “closed” management operation, and this provides good policy and environmental conditions for the enterprises’ development in the future.