Qingdao Port International : Shihua Become the First Company of Stevedored Oil Break Through 100 million tons among of costal ports

The News Center reported, at 6.00 a.m. of 18th December, the throughput of oil was beyond 100 million tons, Qingdao Shihua become the first company with stevedored oil breaking through 100 million tons among of costal ports. On 18th , December, at the meeting of Qingdao Port International Crude Oil Trading and Developing, traders and oil refineries get together to witness the achievement of Shihua Company.

Shihua Company is a joint venture of the Qingdao Port with handling liquidity bulk, which is also the largest base involving in stevedoring, transshipping and warehousing. The company owned 7 wharfs with 12 berths and the largest oil storage tanks in Huangdao Port Area and Dongjiakou Port Area, engaging in stevedoring, transshipping and warehousing crude oil, petroleum products and chemicals. Qingdao Port has started to handle crude oil since 1976, forming an oil distribution center with the leading comprehensive terminal, to keep the first position in China for handling imported oil.

Recently, with deepening reform and opening up, the oil development became faster and faster. Qingdao Port invested more money in facilities. In 2016, the 2.46 million cube meter joint venture oil tanks were in practice in Dongjiakou Port Area, to enhance the storage capacity. In order to improve the whole-processed logistics of oil, Qingdao Port began to construct the oil pipeline from Dongjiakou to Weifang. It spent only 9 months to finish the Project I with 236 kilometer of double pipelines. Meanwhile, the ancillary oil tanks with capacity of one million cube meter were applied, to provide a green logistics channel with low-cost, high-efficiency, safety, energy conservation and environmental protection for local refineries. Nowadays, the Project II and III were beginning to construct. The pipeline connecting with 6 local refineries and Guangrao oil tanks with capacity of 600 thousands cube meter will be applied, to achieve the 'Door-to-Door' whole-processed logistics. After constructing Project III, the pipeline should link the Yellow Sea and Bo Hai, to take a leap to finish the whole-processed logistics system. Currently, Shihua Company has provided 1.4 million tons crude oil through pipeline to 7 local refiners, such as Luqing, Lijin. The new pipelines and oil tanks guarantee the supplies of oil and lower the cost of logistics.

Under the situation of reform of Qingdao Port, Shihua Company cooperated with Qingdao Port International Logistics Company to increase the one-stop whole-processed logistics service by 60%, which integrated the services, such as shipping agency, freight forwarding, stevedoring, warehousing and transport. Shihua Company collaborated with Finance Company to provide financing and insurance service to clients meeting their various requirements. Meanwhile, the company also united other companies to improve the utilization rate of integrated resource, decrease the ships'demurrage time by 57.1%. Leveraging on the resource of pipelines and crude oil tanks, company increased by 211% in stevedoring volume. Taking advantage of comprehensive ability in Dongjiakou Port, the company enhanced cooperation with domestic and foreign traders, to increase strategic partners by 10.

Beginning at the new start of 100 million tons, Qingdao Port set up bonded crude oil spot transaction platform and crude oil future settlement platform involving financing function, trading function and logistics function, to integrate industry, trade and logistics, to deepen the cooperation with all of participants in the industry chains, which made up the community of shared interests, to keep the sustained and health development, achieving a transformation from the base of stevedoring, warehousing and transshipping to traded oil distribution center.