1.Project Site

The Western Area of Yantai Port is situated in the west of the city proper, as well as besides the northeast sea of DajijiaVillage in Yantai Economic & Technological Development Zone (YETDZ), with a distance of 35 km on the sea and a distance of 30 km on land to ZhifuBay. The proposed crude oil terminal is located in the northeast of the western port area.

2. Project Scope

Three conventional berths of 50,000-100,000 DWT shall be built under this project, with an alongside water depth of –14.5 meters, a total quay length of 950 meters and a designed annual traffic capacity of 8 million tons. The project is to be commenced in 2006. One berth is expected to be finished by the end of 2007, while the other two will be completed in the first half of 2008.

3. Project Progress

The planning of the quay line under this project has been approved by the relevant governmental authorities. And now the preliminary design documents have been submitted to higher authorities for review and approval.

4.Traffic Analysis

YEDA is endeavoring to attract two projects to settle down in this area, one is an alumina processing project of Aluminum Group of China (with an annual product capacity of 1.2-1.4 million tons), and the other one is LS copper smelting project. It is estimated that these two projects will bring about 3.5 million tons of imported bauxite, 2.5 million tons of fine copper mine and 1.5 million tons of exported alumina per annum. Furthermore, this terminal can also be used for handling operations of coal export and some bulk cargo transferred from Zhifu Bay Port Area. In this view, the estimated annual throughput is projected at over 8 million tons.

5.Distribution and Transportation Conditions

Railway:The inner-port railway, connecting with the national railway network through Lancun-Yantai railway, possesses an outstanding transport capacity. Meanwhile two additional railway lines (i.e. Dezhou-Longkou-Yantai and Huanghua-Longkou-Yantai) are under construction and will be fully completed for operation in 2008.

Road: According to the planning, several port access roads will be integrated with the provincial road network by direct connection with Tongjiang-Sanya Expressway, Weihai-Wuhai Expressway and No. 206 National Road.

6.Investment

The total investment of the project is estimated to be RMB 1 billion yuan.

7.Cooperation Partners

For the purpose of this project, we are willing to cooperate with the famous logistics service providers, shipping companies, terminal operators and investment companies all over the world.

8.Cooperation Mode

A limited company shall be established by relevant parties for the construction and operation of the terminals.