Quick Summary of Key Points
Recently, Jiangsu Province has taken significant steps to integrate all its seaports, river ports, and inland ports into a collaborative development alliance, aiming to resolve the long-standing issue of lacking a deep-water port on par with Yangshan Port or Ningbo-Zhoushan Port. As the second-largest economy in China by GDP, Jiangsu currently has the highest total port throughput in the country, but 90% of this traffic comes from inland/river ports. Its marine economy is only half the size of Guangdong's, lagging by nearly 1 trillion yuan—equivalent to having thousands of kilometers of coastline yet failing to benefit from the marine economy. By ending the competitive practices among ports and promoting a coordinated development strategy, Jiangsu aims to make “developing towards the sea” its next growth driver and address its biggest weakness.
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Detailed and Easy-to-Understand Explanation
1. How severe is Jiangsu’s “coastal weakness”? Despite having nearly a thousand kilometers of coastline, it’s often called a “pseudo-coastal province”
Jiangsu’s coastal area faces significant challenges: its 954 kilometers of coastline are mostly composed of silt deposited by the Yellow River and Yangtze River over thousands of years, lacking natural deep-water harbors. Other coastal provinces can build ports directly on existing natural harbors, while Jiangsu must remove tens of meters of silt and continuously invest in dredging, making port construction several times more expensive than in Shandong or Zhejiang.
For decades, Jiangsu’s development has focused on the Yangtze River. Even inland ports like Suzhou Port have made it into the top ten nationwide. Now, there’s no room for expansion along the river, and the coastal areas are underutilized. As a result, by 2025, Jiangsu’s total port throughput is expected to reach 3.71 billion tons, the highest in the country, but the combined throughput of its coastal ports will only be 600 million tons, accounting for less than one-fifth of the total. Its marine GDP is 1.08 trillion yuan, half of Guangdong’s 2.04 trillion yuan—essentially, it has a long coastline but fails to leverage its maritime potential.
2. The survival challenges of Jiangsu’s seaports: Blocked by neighboring ports
Jiangsu’s seaports are in a precarious position. To the north, there are Shandong’s Qingdao and Rizhao ports, which are more convenient for foreign trade companies in northern Jiangsu. To the south, most of Jiangsu’s southern region’s trade goes through Shanghai’s Yangshan Port and Ningbo-Zhoushan Port, leaving Jiangsu’s own ports with little impact. Additionally, ports in Jiangsu have engaged in price competition, leading to a vicious cycle where no one invests in expanding capacity.
3. Jiangsu’s unique advantage: A comprehensive transportation network
Jiangsu is the only province in China with access to the Yangtze River, the Grand Canal, and numerous inland waterways, allowing for efficient freight transportation. This reduces logistics costs by more than half compared to road and rail transport. By coordinating these resources, Jiangsu can significantly lower its logistics costs, which account for 1.3 percentage points less of its GDP than the national average, potentially saving hundreds of billions of yuan annually.
4. Moving from competition to collaboration
Jiangsu is changing its approach by integrating its ports with key industries. For example, with the booming export of new energy vehicles, it’s building specialized export docks for companies like BYD. By linking ports with local industries, it ensures a steady supply of goods and reduces logistics costs. This strategy also aims to balance economic development between different regions and address the long-standing imbalance between the north and south.
5. Can Jiangsu’s new approach succeed?
Jiangsu’s diverse and well-connected transportation network gives it a competitive edge. Other provinces lack this integrated system, which makes it difficult for them to copy Jiangsu’s model. By focusing on industry-specific port development, Jiangsu can create new growth opportunities and address its economic disparities.
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In summary, Jiangsu’s new strategy aims to leverage its unique transportation infrastructure to boost its economy and overcome its coastal limitations. By coordinating ports with key industries, it plans to create a more sustainable and balanced development model. Whether this approach will succeed remains to be seen, but it represents a significant shift in how the province plans to grow in the next decade.