Yangtze River Port Brings Investment Opportunities Within Reach

As transport improvements rapidly bring it within an hour's drive of Shanghai's Pudong airport, the city of Nantong in Jiangsu province is raising its profile as an investment destination. The community's excellent port facilities have helped it gain a foothold with investors in chemicals, agricultural processing and even biofuels (see China Biofuel Industry Provides Opportunities in Agribusiness). With more than a dozen industrial zones in the area there are strong opportunities for investors to shop for opportunities that meet their requirements.

 

Classified as a prefecture-level city, Nantong can be divided between the urban districts and the overall metropolitan area. The entire metropolitan area covers more than 8,000 square kilometres and as of 2008 was home to more than 7,700,000 people. Urban Nantong has a population of 611,736, so the area is quite sparsely populated by the standards of eastern China. Total GDP for the metropolitan area as of 2008 was RMB 251 billion, which gave Nantong's citizens a per capita GDP of RMB 35,040.

 

River Bridges Brings Progress

Although close to Shanghai geographically, transportation to Nantong from Shanghai and other urban centres to the south suffered in the past from the lack of convenient rail transport and the need for road travellers to cross the Yangtze river by ferry.

 

However, after the Suzhou-Nantong Yangtze River Bridge, was opened in June 2008, road travel times have decreased dramatically. The project is the world's largest cable-stayed bridge, runs 32.4 kilometers, with 8,146 meters spanning the Yangtze, and supports six lanes of traffic.

 

Commenting on the impact of the bridge recently, Jiangsu province Director of Transporation, You Qingzhong, said, "The journey between Shanghai and Nantong now only takes one hour, but previously it took almost four hours, including the ferry trip.With the bridge, it takes just seven minutes to drive across the Yangtze."

 

In addition to the Suzhou – Nantong link, construction is also soon to be complete on a 7.2-kilometer bridge that will be part of a 52-kilometer expressway connecting Nantong to Shanghai's Chongming Island and from there on to Pudong.

When completed in 2010, the 7.6-billion-yuan (US$1.11 billion) six-lane expressway is expected to cut traveling time from Shanghai's Pudong district to Nantong and Qidong from about two hours to less than one.

 

Low Labour Costs

While wages in Shanghai, and even in emerging cities such as Suzhou have been rising rapidly, there are still opportunities to find low cost talent at affordable rates in Nantong. According to data from the Nantong city government, wages for skilled technicians can be as low as RMB 800 per month. The chart below gives a general picture of labour costs in Nantong as projected by the city government.

 

Estimated Labour Costs in Nantong

	Average Monthly Wage (in RMB)
Office staff	1,200
Skilled technicians	800
Unskilled labourers	600

 

Nantong Port

One of the major factors for many investors choosing Nantong has been the convenience and capacity of Nantong port. The facility is one of the 10 busiest ports in China and the second largest port along the Yangtze River after Shanghai.

 

The port currently allows for passage of 50,000-70,000 DWT tonnage vessels and there are 28 berths capable of handling 10,000 tonne vessels plus seven wharves of capable of moving 100,000 tonnes tonnage of 100,000 and three 1,000-tonnage wharves. All of this capacity makes Nantong port a major attraction for businesses moving bulk cargoes such as minerals, agricultural products, and chemicals.

 

Estimated Sea Freight Costs (RMB/40 foot TEU)

	US (West coast)	Hong Kong	Japan	Singapore	South Korea	UK
Nantong	16000	3700	5800	5811	2700	10000

Air Travel

The Nantong Airport has flights to Beijing, Dalian, Guangzhou, Shenzhen, Qingdao, Xiamen and other domestic destinations. The city is 100 km away from Shanghai Hongqiao International Airport, 150 km from Shanghai Pudong International Airport and 240 km from Nanjing's Lukou Airport.

 

Su-Tong Science & Technology Park

 

One of the biggest projects to be launched in Nantong in recent years is the joint development of the new Su-Tong (Suzhou-Nantong) Science & Technology Park (STP) within the Nantong Economic & Technological Development Area Administrative Committee (NETDA). This new high technology park is a cooperative project between the Suzhou and Nantong governments with the support of the Singaporean investors in Suzhou Industrial Park.

 

Suzhou-Nantong Science & Technology Park was formally launched in May of 2009, and when complete, will cover a total of 50 square kilometres, of which the first phase is 9.5 square kilometres. The development is planned to integrate high tech industries, research and development, residential and commercial amenities. “STP has invested over RMB one billion into infrastructure construction, which will make the park one of the most competitive high-tech parks in the Yangtze River Delta. Investors from high-tech industries such as ocean engineering, solar power technology, new materials, smart grid and biomedicine are highly encouraged to bring their business in our park.” Lucy Huang from STP Investment Promotion Bureau told RightSite.

 

A Survey of Nantong Economic Zones and Industrial Parks

While there are more than a dozen industrial zones in the Nantong area, RightSite has evaluated the offerings at the various developments and created the following list of zones most active in encouraging foreign investment. Potential investors can contact the zones directly, or look for more details in RightSite's listings.

 

Nantong Economic & Technological Development Area

Established in 1984, Nantong Economic & Technological Development Area (NETDA) was one of the first state-level development zones approved by the Central Government and has been certified as an ISO 14000 National Demonstration Zone.

 

The zone benefits from superior transportation facilities by both rail and road. NETDA has direct links to two railways - the Xinyi-Changxing Railway and the Nanjing-Qidong Railway.

 

Su-Tong Yangtze River Bridge feeds into the centre of NETDA and connects the Nanjing-Nantong and Yancheng-Nantong Expressways to the north, and Shanghai-Nanjiang and Suzhou-Jiaxing-Hangzhou Expressways and Riverside Expressways to the south.

 

NETDA includes several subsidiary zones including Nantong Export Processing Zone, New Material Park, Opto-mechatronics Industrial Park and NETDA Business Park. Special incentives are offered for investments n the areas of modern equipment manufacturing, new materials, engineering, fine chemicals, new medicines, new energy and modern services. At present, NETDA has attracted a large number of renowned companies to settle in Nantong, such as Vonnex Allied IT Services, OJI Paper , Johnson Controls, ITOCHU and TSRC Corporation.

 

RightSite Listing: http://rightsite.asia/en/industrial-zone/nantong-economic-technological-development-zone

Jiangsu Nantong Chongchuan Economic Development Zone

Established in 1993, Jiangsu Nantong Chongchuan Economic Development Zone consists of several specialised parks including Chongchuan High-tech Park, Chongchuan Auto park, and Plastics Industrial Park. The zone is located in Nantong's Chongchuan district and is planned to cover a total area of 25.86 sqkm. The Economic Development Zone offers incentives to companies investing in electronic information, food processing, garment and textiles production, port storage and processing, building materials, and modern logistics.

 

The zone is less than 10 km from Nantong port and within 20 km of the G204 national highway which make it attractive to investors who rely on convenient transportation for their business. Major investors in the parks include Fujitsu Electronics, Kawasaki Group, Celanese Chemicals and Metro Group.

 

RightSite Listing: http://rightsite.asia/en/industrial-zone/jiangsu-nantong-chongchuan-economic-development-zone

Jiangsu Haimen Economic Development Zone

Jiangsu Haimen Economic Development Zone is located in a suburban district of Nantong and was established in 1992 by the Jiangsu Government. The zone is about 150 km away from Shanghai Port and 50 km away from Nantong Port. Now that the Suzhou-Nantong bridge is complete the zone is also about one hour's drive from Shanghai's Hongqiao airport and only two hours' drive from Shanghai Pudong International Airport.

 

Haimen Economic Development Zone provides incentives for companies investing in equipment manufacturing, machinery and electronics, bio-pharmaceutical and textiles. The zone's developers has invested in creating reliable electrical networks, water supply, communications and other important infrastructure. The zone now has over 1300 enterprises including Yunxiang Machinery, Kasen Textile and Bestwish.

 

RightSite Listing:http://rightsite.asia/en/industrial-zone/jiangsu-haimen-economic-development-zone

 

Jiangsu Haian Economic Development Zone Administrative Committee

Established in 1992, the Haian Economic Development Zone has a good investment environment with massive land, abundant labor and preferential tax policies. The zone is specialized in the textile industry, technology industry and the high-tech industry. It is only 40 minutes' drive away from Nantong Port and is less than 20 km from the G204 national highway and the G328 highway is also located close-by. Furthermore, 3 railways, which are Xingchang Railway, Ningqi Railway and Haian Railway, are also located around the zone. Major investors in Haian Economic Development Zone include Comtec, Simon Vibet, Huaqing Textile and Jiangsu Haixun Industrial Group.

 

RightSite Listing:http://rightsite.asia/en/industrial-zone/jiangsu-haian-economic-development-zone

 

Jiangsu Rugao Economic Development Zone

Established in 1993, Jiangsu Rugao Economic Development Zone is a provincial development zone approved by the Jiangsu Government with a planned area of 45 square kilometres. The zone is less than 10 km from the G 204 national highway and is within 100 km of Nantong port. Facilities at the zone are well equipped with comprehensive amenities like water, electricity, steam, international standard roads, and advanced telecommunication networks.

 

So far, more than 500 enterprises have entered the zone, and the Rugao Economic Development Zone's management provides tax reductions and other incentives for businesses investing in the areas of garment production, fine and industrial chemicals, agricultural processing and heavy industry. Major investors include Yefa Fiber, Times Garments and Neicheng Garments.

 

RightSite Listing: http://rightsite.asia/en/industrial-zone/jiangsu-rugao-economic-development-zone

Jiangsu Rudong Economic Development Zone

Jiangsu Rudong Economic Development Zone was established in 1992 by the Jiangsu provincial government and has a planned area of 34.84 square kilometres. The zone's development is based around six pillar industries including light manufacturing, textiles, machinery production, electronics, and food and agricultural processing. The management of Rudong Economic Development Zone provides tax concessions and other incentives for investors in these industries.

 

With regard to transportation, the zone is less than 50 km from Nantong airport, within 100 km of national highway G204, within 100 km of Nantong port, and less than 50 km from the Jinghu railway line. Major investors include QSGLOVES, Netexcell, Jiangsu AZ Group and Yingrui Group.

 

RightSite Listing: http://rightsite.asia/en/industrial-zone/jiangsu-rudong-economic-development-zone