DP World to develop Shanghai free trade zone in China expansion
DP World is expanding its operations in China by signing a Memorandum of Understanding (MOU) to support logistics and trade development at the Lin-Gang Special Area, a free trade zone in Shanghai.
The MOU was signed with Shanghai Lin-Gang Economic Development Group (Lin-Gang Group) at a virtual ceremony by Lin-Gang Party Secretary and Member of Shanghai Standing Committee, Jinshan Chen, Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World and Abdulla Bin Damithan, CEO & Managing Director, DP World UAE & Jafza.
DP World will work with the Lin-Gang Group and deploy the World Logistics Passport (WLP) programme, a global, private sector-led, initiative designed to smooth the flow of global trade, unlock market access through the creation of new trade routes and provides economic efficiencies to members. The WLP will provide Chinese businesses with faster and more cost-efficient access to markets in Asia, Latin America, the Middle East and across Africa.
At the same time, DP World will share its experience from Jafza, its flagship freezone in the UAE. Combined with the Jebel Ali Port, Jafza forms a world-class, integrated ecosystem for over 9,000 companies from around the world, serving more than 3.5 billion people globally by connecting directly to 150 ports and more than 180 shipping lanes.
The Lingang Special Area offers some of the most innovative and forward-looking business policies for both Chinese and international companies beyond normal free zones offerings. There are currently more than 40,000 corporations registered in Lin-Gang, including Tesla which operates a Model 3 factory, China International Maritime Containers (CIMC), China State Shipbuilding Corporation (CSSC), Caterpillar, and Commercial Aircraft Corporation of China (COMAC). Its strategic position in southeast Shanghai makes it an important node for Shanghai coastal thoroughfare with access to waterways, air routes, railways, highways, inland rivers and the subway.
The MOU aims to benefit customers in both freezones.
As part of the agreement, Lin-gang will invite leading enterprises in the Yangtze River Delta to jointly promote the WLP to benefit from the innovative policies and offerings from this programme.
The inclusion of China in the WLP strengthens the programme’s position across Asia with Hubs in India, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam. Chinese traders and freight forwarders who become Members of the WLP will have access to the different benefits offered by WLP Partners, who include DP World, Thai Airways and Emirates SkyCargo. Example benefits include fast-tracking of cargo, reducing customs clearance times, and removing administrative costs.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, said: “Extending the WLP into China by partnering with Lin-Gang special area is a huge development and a testament to the strength of the programme. Efficient supply chains make products and services more competitive and selling to more markets increases economic resilience. The WLP helps deliver this, whilst also strengthening bilateral relations between the People’s Republic of China and the United Arab Emirates.”
Bin Sulayem is also Chairman of the Dubai Ports, Customs and Freezone Corporation (PCFC), which owns and runs the WLP.
Lin-Gang Party Secretary, Jinshan Chen, said: “Lingang Special Area is a pioneer in promoting the higher level of opening up in Shanghai. Since its establishment in 2019, it has always been promoting market-oriented innovation with opening-up commitment to build a standardized and transparent system. Our partnership with DP World could help Lingang to build an open Special Zone, and accelerate the establishment of a new development platform to create channel & gate for Chinese enterprises to develop business in Middle East, Indian subcontinent, and Red Sea region.”