Ningbo’s Beilun port is probably China’s best deepwater port and fourth biggest in 2005, with a throughput of 5.2m TEUs, up 30% on 2004’s 4m TEUs. Spurred by low terminal charges, it has been one of the mainland’s fastest-growing ports in the last five years. Container throughput increased 37% year-on-year to 3.83m TEUs in the first seven months of 2006. With a maximum depth of 18.2 metres, it is one of only two facilities in China (the other is Shenzhen’s Yantian) able to handle the new generation of over 6,000-TEU container ships. Until now, Beilun’s facilities have been devoted mainly to bulk-cargo deliveries, with specialised berths for coal, iron ore, and crude oil. In 2005, the port handled 270m tonnes of cargo, up from 226m tonnes the previous year, making it the second largest bulk freight port in China after Qingdao.

Ningbo has expanded capacity rapidly. The development of its principal container facility was facilitated by the establishment of a joint-venture company, Ningbo Beilun International Container Terminal, in June 2001 to develop and operate phase two of the facility. HPH has a 49% stake in the JV. Phase two is equipped with three berths, giving an annual capacity of 2.9m TEUs. An eight-year expansion plan, estimated to cost US$1.2bn, is underway.

In January 2005, Taiwan’s Evergreen Marine finalised an agreement with the Ningbo Port Authority (NPA) for a 50% stake in the development of two berths in phase four, while Switzerland’s MSC will develop another two berths also in phase four. Phase five will add another five berths from 2007 on, with Cosco Pacific and Hong Kong’s Orient Overseas Container Line (OOCL) taking a 20% stake in the development. OOCL also has a 20% stake in the operation of the seventh berth. Port capacity will be raised to 5m TEUs by 2006 and 10m TEUs by 2010, according to the NPA.

Growth at Ningbo’s container terminals has been so great, however, that it has run out of space for further expansion. As a result, the port announced in December 2005 it would merge with neighbouring Zhoushan, an island port used mainly as a transhipment facility for bulk cargoes. Zhoushan will host a further 12 new container berths, providing annual capacity of 6m TEUs. The first berths are due to come onstream in 2008. In addition, Zhoushan’s bulk handling capacity will be boosted to 150m tonnes annually in three or four phases. Investors in the project include Hong Kong’s Orient Overseas Container Lines (OOCL).