China's Port Reform and Development

Abstract

Driven by globalization and the Chinese export-oriented economy, ports in China have experienced exponential growth in the past decade. The Chinese port industry has gone through several stages of reform, from a central-control system with inadequate investment and poor efficiency to a large-scale and highly competitive system with various types of public–private partnerships. Today, the Chinese port industry is characterized by rapid growth, large-scale foreign investment, and liberalization of port policy. Of the top 10 container ports in the world, six are in China. This accomplishment is largely because of port reforms; in recent years, corporatization and joint venture have become the hallmark of port development in China. This study reviewed the evolution of China's port reform and policy changes supported by port statistics, examined a brief case study of port development in Shanghai, China, and analyzed policy changes in port governance, legal framework, and funding mechanisms. The analysis integrated key milestones in policy change and port development. Port reform has become an enabler of China's economic development and international trade. The unique model of port governance and administration provides an effective tool for macrocontrol at the national level and private-sector investment in cargo-handling systems and management expertise. Whether the port reform will take the next step toward more private sector involvement and what type of public–private partnership will form remain to be seen.