【Location】

　　Located in Zhifu Bay on the northern shore of Shandong Peninsula, Yantai Port overlooks Liaodong Peninsula across the sea. Being one of the main pivotal ports of China as well as an important coastal port open to the outside world, Yantai Port holds a key position in the nation's comprehensive transport network. It shall also act as one of the vital links along the country's great Tongjiang-Sanya passageway which is under construction (Tongjiang lies in Heilongjiang Province, the north of China, Sanya in Hainan Province, and the South of China). Yantai Port consists of three parts: Zhifu Bay Port Area, Western Port Area and Penglai Port Area. Zhifu Bay Port Area covers a water area of 867.4 square kilometers and a land area of 5 million square meters ， with a coastal line of 7 km. Western Port Area covers a land area of 50 square kilometers, with a planned costal line of 19 km.

　　【Current Situation】

　　Yantai Port has a long history. It was opened for as early as in 1861. The harbor has been expanded many times since the foundation of People's Republic of China in 1949. Large-scale expansions have been carried out especially since the year of 1973 in accordance with Premier Zhou Enlai's instruction, i.e. “To change the looks of ports in three years”.

　　With the proceeding of the reform and the national economic growth, Yantai Port witnesses a wonderful developing opportunity. Under the 1 st and the 2 nd Phases of port construction project, 12 deep water berths were completed and put into operation in 1990 and 1997 respectively, allowing the harbor to have an additional annual design capacity of 7.3 million tons for cargo handling.

　　To meet the development demand of containerization and the vessels' upgrading trend, the 3 rd Phase Project was commenced in 1997, consisting of 7 deep-water berths to be completed in two periods. During the first construction period, two container berths (with the alongside depth of – 14 m) and two conventional cargo berths (with the alongside depth of – 16 m) were completed in December 2001 and were accepted after inspection by the relevant authorities of the State, with a newly-increased design capacity of 2.55 million tons per annum.

The construction of the other facilities under the 3 rd Phase of the second construction period was commenced in 2004. By Aug. 2005, the facilities have been ready for vessel accommodation. After the overall completion of the 3 rd Phase Project, the coastal line will be increased by 1,026 m, with a maximum water depth of -20 m. In April 2004, another expansion project along the seashore of the west basin of Yantai Port was completed, under which a container berth and a multi-purpose berth were built up, with a total annual designed capacity of 960,000 tons.

　　Data of the port facilities are provided as follows:

　　【Development of Western Port】

　　The Western Port of Yantai is situated in the west of the city proper, as well as beside the northeast sea of Dajijia Village 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 Zhifu Bay. The costal line totals 15.5 km in length, consisting of an east line of 9 km and a north line of 6.5 km. The Western Port covers a land area of 50 square km, including a port operation zone of 24 square km. According to the planning, the Western Port is to be divided into five sections for container, liquid chemical industry, break-bulk cargo, multi-purpose operation and port-related industry. The land area is 1,500-2,000 m in width, with a wharf line of 19,000 m. In this area, 45 berths varying from 10,000-300,000 DWT are to be built up, with a throughput capacity of 120 million tons and a container capacity of 7.5 million TEU.

　　【Port Development】

　　The hinterland of Yantai Port is a developed region in China, particularly with a high growth rate of foreign-oriented economy. It enjoys not only perfect transportation facilities in respect of road and railway, but also excellent port conditions of distribution and shipment. Nowadays Yantai Port has established shipping links with over 100 ports in more than 70 countries/regions in the world. In view of the rapid development of the international shipping business (especially the soaring passenger and cargo traffic between South Korea and China), over 10 international container lines have been opened for shipping and transshipping of containerized cargo all over the world. The passenger and Ro-Ro shipping line between Yantai and Dalian is among the busiest in the coastal area of China. To meet the demand of transportation through the nation's north-to-south great passageway, a new passenger terminal building and a Ro-Ro terminal (Sanliqiao Ro-Ro Terminal) have been built up. The port throughput of 2004 was over 3,050 million tons, including container traffic of over 290,000 TEU and a passenger traffic of 3 million person-times. The volume of foreign trade cargo (mainly consisting of fertilizer, iron ore, grain, cement, coal and rock such as granite), makes up 60% of the total traffic and is increasing steadily year by year. In 2005, a series of integration on port business was speeded up. Now Yantai Port Group has taken over several local port-related companies. It is anticipated that in 2005 Yantai Port will achieve an overall throughput of 42 million tons, and container traffic of 550,000 TEU and passenger traffic of 4 million person-times.

　　【Corporation Profile】

　　Being a large-scale comprehensive enterprise with over 20 subordinate divisions and over 7,300 employees, Yantai Port is well engaging in wide-range of services listed as follows:

　　•  Cargo handling;

　　•  Storage;

　　•  Processing;

　　•  Tally;

　　•  Transshipment;

　　•  Surface transportation of passenger and cargo;

　　•  Ship agent;

　　•  Harbor engineering;

　　•  Machinery manufacture and reparation;

　　•  Industrial production;

　　•  Commercial trade;

　　•  Tourism; and

　　•  The other services.

　　Yantai Port has, since the reform and opening up policies adopted in China, witnessed remarkable achievements in every aspects by: (i) improving management mechanism; (ii) promoting transformation in the way of economic growth; (iii) enhancing the competitive capacity of the port; and (iv) increasing the economic benefit. This has enabled the port to win quite a few State Prizes such as:

　　•  State Prize for Excellent Enterprise Management;

　　•  State Prize for Quality Control;

　　•  National Prize for Excellent Ideological Work;

　　•  National Advanced Port for Civilization in Transportation Sector;

　　•  National Customer-satisfying Enterprise; and

　　•  National Quality-and-Benefit Oriented Enterprise.

　　【Guideline & Target】

　　The guiding ideology for the development of Yantai Port is: (i) Reforming with innovation; (ii) Progressing with important mission; (iii) Endeavoring for prosperity; and (iv) Leap-forward development. The strategic guideline is: (i) to seize the developing opportunities and make innovation in the development concept; (ii) to make efficient integration of the relevant resources on the market, basing upon the existing resources; (iii) to undertake the unique, integrated, specialized and standardized port operation; (iv) to formulate the scientific and practical overall development planning and the various targets stage by stage; (v) to promote the growth of the core business of the port as well as the port-related industries and the logistics business; (vi) to build up the port trade platform and increase the port benefit; and (vii) to focus on the core business of the port and achieve the coordinated growth of the port business, port-related industries, trade and logistics business.