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Realizing Port's Sound and Fast Development in the Context of Economic Globalization

For years, we have sought high-level, win-win cooperation in a wide range of areas with business partners so as to combine the advantages of port resources, shipping lines, and cargo supplies together. Through such cooperation, the port not only got capital, technology and management, but also secured long-term stable supply of cargos. So far, Port of Qingdao has joined hands with well-known shipping companies such as Maersk, COSCO, OOCL, Evergreen, etc. to operate the container terminal and CFS. The port operates the crude oil terminal in cooperation with Sinopec, collaborated with Mitsubishi of Japan to construct the distribution center for bulk cement, and cooperated with ABB of Switzerland to establish ABB Qingdao Logistics Center for low-voltage products. These are the Fortune 500 companies. On July 21, 2003, signing ceremony for the cooperation of QQCT (Qingdao Qianwan Container Terminal Co., Ltd.), a joint-venture with investment of $887 million between Port of Qingdao, P & O, Maersk and COSCO, was held at the Great Hall of the People in Beijing. Chinese Premier Wen Jiabao, former British Prime Minister Tony Blair, and ministers from China and Britain attended the signing ceremony. On July 23, 2007, Port of Qingdao and EIMSKIP of Iceland, the world's largest reefer logistics operator, signed the cooperation agreement on the Cold Store at the Icelandic Presidential Palace. The 55,000 ton-capacity Cold Store is located at Qingdao Qianwan Port Area. The Icelandic President personally directed the signing ceremony. On Oct. 6, 2007, Port of Qingdao and EIMSKIP held grand ceremony for the opening of the Cold Store. The Icelandic President led a delegation of over 300 high officials and entrepreneurs to attend the opening ceremony and delivered a speech.

Through strengthening cooperation with business partners, Port of Qingdao has established strong strategic alliances, realized sustaining fast development, and maintained the position as China's 2nd largest port for export.

Third, environment protection is the port's responsibility. Environment protection is of great importance for the survival and progress of human being. The environment of a port reflects its management and is a demonstration of its image. Providing good port environment is to care and protect the employees' health, which is the social responsibility of an enterprise. An enterprise without social responsibility cannot win the respect and trust of the society. We not only pay attention to throughput and economic benefits, but also attach great importance to energy saving and environment protection. Owing to the characteristics of port operation, port shoulders an important responsibility for environment protection. The operation of coal, crude oil and iron ore, if not properly handled, could cause pollution to the environment. For the past decades, we gave environment protection an important place in the port's development strategy. All year round, the port carries out a number of environment protection projects to build a port with “blue sky, green land, and clean water? No grease dirt, iron ore dust, and coal dust could be found at the port area during the operation of such cargoes. There is no black smoke in the air, no dust on the ground, and no flotage on the water surface. In 2007, we invested over RMB 60 million to reinforce environment protection. The port has become a beautiful garden, where flowers are in bloom from spring to autumn and green plants cover the port area all year along. Here, harmony is realized between man and nature, between production and environment, and between port and society. Port of Qingdao has been entitled “Environment-friendly Enterprise of China?

Looking forward to the future, we aim at the leading edge of world port development and stick to scientific, harmonious and leading development, so as to establish Port of Qingdao as a self-innovative, resources-conserving, environment-friendly, quality and benefit-oriented, and harmonious port and make our contribution to the economic development of China and the World.

Thank you!

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(October 24,2007)

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