This extract is reproduced with permission:
Shanghai International Port (Group) Co., Ltd. is the exclusive operator of all the public terminals in the Port of Shanghai. SIPG was incorporated in 2003 when the former Shanghai Port Authority was reorganised. SIPG is the largest port company in China [and] its core project is to develop the market in Yangtze River Area. SIPG has the annual cargo capacity of 136.6 million tons, container capacity of 8.5 million TEUs.
We visited the company building of SIPG and learnt about their businesses. We were introduced to their port services, port commerce and their cargo. During the meeting and discussion with SIPG, we found out that the comprehensive strength and quality of their services enabled SIPG to stand out in the China market and gain the government’s trust. Their strong connection with the government also aided them greatly as well, a key factor of success for any company in China. SIPG makes full use of their resources; they opened an international supermarket in the Bund area. We can see that SIPG accurately sensed the potential opportunities in the industry, and was able to further explore the opportunity and develop the business, with the support of its established supply chains. Their depth of market exploration shows us that the position of SIPG at the forefront of the port and shipping industry is well deserved.
Visiting SIPG to learn more about the company and its operations was truly an eye-opener. It gave us a first-hand experience of how a world-class port operates and stay competitive. We saw how SIPG makes full use of the current policy and market to reinforce its leading position in the China port industry.
Read more about SMU’s Shanghai Industry Study Mission 2017 to Shanghai International Port (Group) Co. Ltd.
Credit: International Trading Institute@SMU