Asia/Pacific News
South China Free Port Plan Sparks Bunker Trader Interest
China is to develop a free trade port at Hainan, an island on its southernmost coastline close to Vietnam, the Chinese government has said.
The move, announced by president Xi Jinping, would see a phased development of the port from free trade zone to fully-functioning free port status within 20 years. Hainan is known primarily as a holiday destination.
Canvassing analyst opinion, regional news provider the South China Morning Port reports that the Chinese decision can be viewed in part as a response to US policy moves to strengthen alliances in the southeast Asian region.
But from a commercial point-of-view, freetrade status, which would see foreign firms operating in the concession, has caught the interest of regional bunker traders.
"Its [Hainan] opening up will support the industry there … if trade grows, I believe it should be a win-win situation for all, but bunkering wise, competition among the different ports — both domestically and regionally — will intensify," a bunker trader was quoted as saying by price reporting agency Platts.
"As a free trade port, there will be cargo, talent and capital moving freely in and out … it will be favorable for bunkering but the harbor there is not so big, so there might be limits on demand," another bunker source said.
