Programme: "Belt and Road Initiative" Study Programme in Shanghai
Partner Institution: Shanghai International Studies University
Period: December 25, 2023 – January 3, 2024
The China vision I built along this trip is that Chinese value efficiency and they have different considerations when making policies. To support this observation, I wish to talk about my visit to Shanghai Yangshan Terminal.
The automated port was a key infrastructure project of the Shanghai government and its throughput reached 43.35 million TEUs (Twenty-foot equivalent units) in 2019. The high level of automation significantly raises the productivity and efficiency of the port.
When our group arrived the port, the tour guide was very excited to greet us. Throughout her guide, she emphasized several times that each shore crane was worth RMB$100,000,000 and that the Terminal had 30 of them. She was apparently very proud of these shore cranes. However, when I heard about the numbers, my immediate thought was: how long would it take for the port to break even? Taking into account the fact that a whole new bridge was built to link the port with the land area of Shanghai, how much throughput would be needed to justify the numbers? Not to mention that automation will not provide employment opportunities for Shanghai.
The guide told us that the port made around RMB$100,000,000 in net profit per year, and from the complementary information I searched online, Yangshan Terminal is an important terminal contributing to Shanghai’s status as the number 1 port city in the world. Also, greater connectivity through the port will encourage trade, increase competitiveness of factories in Shanghai and neighbouring area (because they will now enjoy a lower transport cost for their goods) and promote free flow of goods and labour. These are other policy considerations which cannot be quantified into the equation justifying the building of the port.
One of the most memorable moments during the trip was when I discovered "大隱書店" on my way to the Shanghai public library. Its serene ambiance and the offer of tea to passers-by enticed me to enter. Once inside, I was impressed by the wide variety of books available at extremely low prices, as all titles were 40% off for a clearance sale. This allowed me to buy several books that intrigued me without worrying about the cost, making the experience even more enjoyable.
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