World’s Largest Iron Ore Terminal to be Built in Qingdao

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Sept. 15 – Construction will begin in Qingdao on the world’s largest iron ore port by the end of this year, the Qingdao government has said.

According to the Shandong State Asset Management Commission, the RMB3.8 billion port is designed to have a throughput capacity of 25 million tons and will serve as a critical port to the numerous steel mills in Shandong, Henan, Hebei, Shanxi, Shaanxi, and Xinjiang.

The iron ore terminal will be situated in the Qingdao Port at Dongjiakou.

The port of Qingdao is a critical hub for international trade and has established trade relations with more than 90 international sea routes to over 450 ports in more than 130 countries and areas. The port is China’s second largest foreign trade port and also operates Asia’s biggest crude oil terminal and the world’s top iron ore terminal.

Total throughput reached 315 million tons in 2009, an increase of 5 percent year-on-year according to figures released by the Ministry of Transportation at the end of last year.

Many Fortune 500 companies have established subsidiaries in Qingdao Port, including Mitsubishi from Japan and ABB from Sweden.

Qingdao is the wealthiest city in Shandong Province. It is one of China’s top 10 economically performing commercial cities. The municipal government has provincial-level authority for economic administration and the governance of economic laws. The city has six pillar industries, specifically electronics and communications, information and electric home appliances, chemicals and rubber, food and beverage, automobile and ship building, and garment and accessories.

To learn more about the current business environment in Qingdao, please download the complimentary China Briefing Qingdao City Guide. For additional information or advice on establishing a business in Qingdao, please contact Dezan Shira & Associates at qingdao@dezshira.com.