The 4 perspectives in ports: Ocean Line Port Development

The Chinese company Ocean Line Port Development Limited operates two port terminals, the Jiangkou Terminal and the Niutoushan Terminal, both located in Chizhou City, Anhui Province, People’s Republic of China.

Chizhou City is located upstream downstream along the Yangtze River and is a major port city in the southwestern region of Anhui Province.

Above all, the company is dedicated to providing port logistics services (including loading and unloading, bulk cargo handling service, container handling, warehousing and other services).

Also Ocean Line Port is a crucial member of the integrated development of the Yangtze River Delta.

With abundant mineral resources as its greatest strengths, Chizhou City is a comprehensive non-metallic mineral base in eastern China.

In 2020, Ocean Line Port’s total container and bulk cargo production volume was 23.0 million tonnes (2019: 22.9 million tonnes) and 17,034 TEU (2019: 18,138 TEU), respectively.

Ocean Line Port

The Group’s revenue and profit were RMB 150.5 million (2019: RMB 146.2 million) and RMB 64.2 million (2019: RMB 60.1 million).

Ocean Line Port’s business outlook will be affected by various uncertainties in 2021, primarily due to the following factors:

First factor

The global pandemic has not been well contained, with a rebound in some countries and regions.

However, several countries have successively released vaccines in hopes of alleviating the pandemic.

Ocean Line Port anticipates that market demand will recover after the pandemic, contributing to the growth of the Group’s business.

Based on the operations and capital commitments of the port business, it is estimated that Ocean Line Port has sufficient funds to meet its working capital and capital expenditure requirements.

Second factor

The rise of international trade protectionism, the decrease in the production of basic industries such as the steel industry and the decrease in the demand for non-metallic minerals will affect the Group’s port business.

Third factor

The increase in maritime freight and the shortage of empty containers have caused an increase in the cost of container transport for its customers, generating a greater impact on the “Bulk Cargoes to Containers” (the change in the form of transporting bulk cargo to container) operation that has just started in the Chizhou city market.

Fourth factor

The continued expansion of environmental governance has impacted mining corporations in the city of Chizhou, bringing uncertain factors to the Group’s commercial port developments. The competition from the water transportation market in Chizhou City will be more and more fierce.