Published by ChinaMNC · Wencheng

New Cargo Gateway Opens in Southern Zhejiang: What It Means for Foreign Founders

A new public container terminal at Wenzhou Port's Pacao operation area is set to improve logistics for foreign businesses operating in southern Zhejiang. Here's what foreign founders need to know about the project and its implications.

New Cargo Gateway Opens in Southern Zhejiang

Foreign founders operating in China's manufacturing hubs often face logistical challenges when exporting goods. A new port project in southern Zhejiang aims to address one such bottleneck. The first phase of the Wenzhou Port Pacao operation area, located in Longgang, is under accelerated construction and is scheduled to be operational in the second half of next year. This development is particularly relevant for foreign-invested enterprises in the region that rely on efficient shipping for their supply chains.

Project Overview

The Pacao operation area is designed as a public container cargo terminal—the first of its kind in Longgang. According to the project's full-consulting construction management head, He Kunqiang, the first phase includes four 5,000-tonne cargo berths, an 8.8-kilometer dedicated approach channel, and standardized storage yards and warehouses. The annual design throughput is 4.8 million tonnes, with a complementary mix of 50% containers and 50% bulk cargo. The project also incorporates smart channel technology and is described as a key initiative to fill the gap in port functions in southern Wenzhou.

Construction Progress and Challenges

Construction has faced delays due to multiple typhoons this year. From July to September, construction vessels were relocated to the Yuhuan area for shelter, causing a two-month delay. Additionally, typhoon-induced siltation required re-dredging of nearly 300,000 cubic meters. Despite these setbacks, a 105-meter-high pile-driving vessel is now on standby, and pile foundation work is set to begin at the end of the month. The completion of dredging and the ongoing construction of approach bridge cast-in-place piles indicate that the project is moving forward.

Benefits for Foreign Founders

For foreign founders with companies in Wenzhou and surrounding areas, this new terminal promises to reduce logistics costs and shorten turnaround times. Previously, cargo from southern Wenzhou had to be transported to other ports for transshipment, leading to higher costs and longer delivery times. Once operational, goods from Longgang, Pingyang, Cangnan, Wencheng, and Taishun can be loaded and shipped locally, streamlining export processes. This is particularly advantageous for businesses in manufacturing and trade that require efficient access to international markets.

Longgang's Industrial Context

Longgang has evolved from China's first farmers' city to a modern coastal city, but it has long struggled with the absence of a port despite its industrial growth. As a national hub for the printing industry, Longgang hosts a large private manufacturing base with strong foreign trade demand. However, the lack of industrial cargo terminals has been a constraint. The new port aims to transform this geographical advantage into an open-economy advantage.

The Dual-Port Strategy

The project is part of a broader "one port, two areas" strategy. Alongside the cargo terminal, the Longgang Pacao Central Fishing Port is undergoing a functional upgrade. The fishing port focuses on marine fisheries and people's livelihood industries, while the cargo terminal targets industrial foreign trade. The two areas are adjacent, with interconnected road networks and complementary functions. The fishing port has already been upgraded to a national-level central fishing port and a pilot for a national coastal fishing port economic zone, with improved channels, revetments, and supporting facilities. It has transitioned from a single-function fishing berth to a platform integrating fishing, aquaculture, cold-chain processing, seafood trading, and coastal tourism.

Multimodal Connectivity

On land, the region is well-connected via the Shenhai Expressway duplicate line, National Highway 228, urban trunk roads, and cross-river channels. Port roads seamlessly link the port area with industrial parks, facilitating efficient movement of raw materials and finished products. At sea, the dual ports enable two-way flow of fishery logistics and industrial shipping. In the low-altitude sector, the Southern Zhejiang Low-Altitude Economy Science and Technology Innovation Incubation Base is attracting an increasing number of enterprises, filling gaps in low-altitude logistics, emergency support, and industrial inspection. This comprehensive land-sea-air transportation network is expected to redefine Longgang's location, making it a key regional transportation node in southern Zhejiang and northern Fujian.

Practical Implications for Foreign Founders

Foreign founders considering setting up or expanding operations in southern Zhejiang should note the following:

• Logistics efficiency: The new port will reduce reliance on distant ports, potentially lowering costs and improving delivery times for exports.
• Industry synergy: The proximity to Longgang's printing and manufacturing clusters offers opportunities for supply chain integration.
• Infrastructure development: The multimodal network enhances connectivity, which can benefit businesses requiring efficient transportation.
• Timeline: The port is expected to be operational in the second half of next year, so plan accordingly.

While the project is promising, foreign founders should also consider regulatory and operational aspects of setting up a company in China, such as selecting the right legal structure, understanding tax obligations, and navigating local regulations.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

For assistance with company registration and operations in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.