The iron ore wharf in Zhanjiang Port [Photo/Zhanjiang Daily]

Zhanjiang Port Group and Beijing Iron Ore Trading Center Corporation (COREX) signed a cooperation framework agreement in Zhanjiang on Aug 28 to establish China South Iron Ore Spot Trading Platform in Zhanjiang Port.

The agreement was signed during the Zhanjiang Forum of China Iron Ore Spot Trading Platform, which attracted more than 150 large-scale domestic and overseas enterprises including China Shipping Bulk Carrier Co, Rio Tinto and Vale of Brazil.

The China South Iron Ore Spot Trading Platform, which will be operated by the COREX, will run as an e-commerce platform. It is an innovative trading agency that follows modern Internet trends and serves for commodity economy. Upon its completion, it will drastically change the current iron ore purchasing mode in Zhanjiang Port.

Zhang Yi, chairman of the Zhanjiang Port Group, said that Zhanjiang Port will combine the functions of logistics and the iron ore spot trading platform, offer innovative service modes for iron ore upstream and downstream enterprises and accelerate the construction of a 400,000-ton channel.

"We have set a goal to achieve an annual cargo throughput of 300 million tons in three to five years and return to the national top 10 coastal ports list," Zhang added.

Zhanjiang Port, located at the junction of the Pan-Pearl River Delta Economic Circle, Southwest Economic Circle and Beibu Gulf Economic Rim, is one of the main access points to the sea in South China and the best offshore logistics platform linking the Chinese mainland with ASEAN countries.

Currently, the actual iron ore import volume in Zhanjiang Port is only 17 million tons. It, however, has promising growth potential as nearly 20 key steel enterprises in China's four major economic regions import about 150 million tons of iron ore per year.

Its iron ore throughput is expected to soar as Baosteel's iron and steel project will also be put into operation in Zhanjiang in near future.

In the next step, Zhanjiang Port Group will cooperate with foreign mining enterprises to set up an iron ore distribution center, which will improve interconnection among mining, shipping companies, ports and railways by relying on the Group's stacking yard for iron ore and the China South Iron Ore Spot Trading Platform in Zhanjiang Port.

In the future, tailor-made delivery service of iron ore will be instated. Domestic steel companies can purchase goods and choose delivery date on the trading platform. Mining companies will supply materials through distribution centers at ports, while ports will load and distribute raw materials according to customers' requirements. Finally shipping companies and railways will provide logistics services.

Such comprehensive service is expected to radically change the current iron ore purchasing mode and help Zhanjiang Port become the largest base for ore trade, warehousing and distribution in the regions of southwestern, southern and southeastern China.

Edited by Mevlut Katik