Dongying Port to accommodate more Aframax tankers

Dongying Port. Credit MarineTraffic / Cathay Knight

Two berths will be built in Dongying Port in China’s Shandong province to accommodate more Aframax oil tankers. Shandong is home to the majority of China’s privately owned, or “teapot” refineries and these enterprises are stepping up crude oil imports.

China’s Ministry of Transport gave the green light to Dongying Port’s application to construct the berths, each of which can accommodate oil tankers of up to 100,000 dwt. In June 2019, Dongying Port called for tenders to seek suitable contractors.

On 16 August 2019, the second engineering company of China Communications Construction Company (CCCC) First Harbour Engineering, a subsidiary of the state-owned marine engineering and construction group CCCC was chosen to handle the construction, after submitting a bid of about CNY460 million (USD65 million).

Operating the berths will be Shandong Bohai Bay Haixin Port, a joint venture between Shandong Bohai Bay Port Group and local petrochemical producer Wantong Haixin Holding Group. Construction works are expected to take about 18 months.

The berths are the first facilities to accommodate tankers of up to 100,000 dwt, since Dongying port began operations in 1984, and are also the first of its kind among the four ports in Bohai Bay. More than 10 million tonnes of crude oil unloading capacity is expected to be added with the berths and will effectively boost the productivity of Dongying Port and Shandong’s provincial economy. At the same time, the CNY960 million development is Shandong Bohai Bay Port Group’s first major infrastructure investment since its incorporation in March 2018.

Shandong Bohai Bay Port Group’s formation resulted from the provincial government’s consolidation of port assets in the Bohai Bay region, in response to the central government’s call to streamline state-owned enterprises. The first stage saw Dongying, Binzhou, and Weifang ports coming under Shandong Bohai Bay Port Group’s control, while at a later stage, Qingdao and Weihai ports may be integrated.

The new Aframax berths in Dongying are estimated to generate revenue of CNY190 million for Shandong Bohai Bay Port Group and may boost the latter’s profits by about CNY100 million.