The national program to develop a world-class oceanic economy in Shandong Peninsula has already greatly benefited the coastal city of Yantai as "marine-related industries are strong forces in boosting the local economy", Wang Liang, mayor of the city, recently told China Daily.

Yantai witnessed robust growth in its marine sectors since development of the Shandong Peninsula Marine Economic Zone became a national strategy in 2011, Wang added.

Last year, the product value generated by the city's marine industry hit 172.7 billion yuan ($27.74 billion), an increase of 16.7 percent from 2011.

This year, the local government has set a growth target of over 16 percent in marine industry revenue, which is expected to exceed 200 billion yuan.

On the east of the Shandong Peninsula and bordered by Bohai Bay and the Yellow Sea, Yantai faces Japan and the Republic of Korea across the sea, a position that aids its status as an international transportation hub.

It has a 909 kilometers of coastline, the second-longest of all of Shandong cities, and 26,000 square kilometers of sea, nearly twice the size of its land area.

The mix gives the city a number of clear advantages in developing a marine economy, in terms of ports, coastline, islands, sealift, mining and logistics.

"With abundant marine resources and huge advantages, the city has great potential to lead the nation's marine industries," said Wang.

Yantai has now established a competitive marine industry system focused on aquaculture, fishing, equipment manufacturing, ocean energy and minerals, modern logistics and seaside cultural tourism.

Home to four international ports and 49 provincial-level modern fishing demonstration parks, Yantai exported 254,000 tons of aquatic products last year that generated $1.45 billion in revenues. Its export value accounted for one-tenth of the country's total.

Port-related industries

The city has long emphasized port development and related industries including modern logistics, export processing, manufacturing, and foreign trade.

According to the Yantai Ports and Shipping Management Bureau, cargo throughput at all the city's ports last year reached 270 million tons, an increase of more than 11 percent over 2011, despite the worldwide economic slowdown. It also handled 11.02 million passengers, up 6.5 percent.

Port-related industries are projected to generate 300 billion yuan in revenue by 2016.

To reach the goal, 500 billion yuan has been allocated to develop a range of ocean-related projects, among them 39 each requiring an investment of 1 billion yuan.

The projects include a 600-square-kilometer new marine economic zone on the eastern coast of the city, a 100-square-kilometer port-centered industrial park in Laizhou, a 1.59 billion-yuan ocean property rights exchange center and artificial islands near Longkou Bay.

The construction of the new marine economic zone is on the top of the local government's agenda and was written into the national 12th Five-Year Plan (2011-15) for development of the marine economy adopted by the State Council in January.

It has now become a hub for domestic and foreign investors with more than 400 projects each worth over 100 million yuan under development.

It also attracted a number of world-renowned businesses in marine biology and equipment manufacturing, including Yantai CIMC Raffles Offshore Ltd Co, a leading maker of offshore oil drilling platforms.

"We will spare no effort to make the zone a new urban nucleus and a marine industry powerhouse for the entire Shandong Peninsula in five years with prosperous creative sectors, modern logistics, marine technology research, high-tech industries, as well as coastal tourism," said the mayor.

Wang is also encouraging the local fishing and aquaculture companies to closely cooperate with research institutions. The city now has 30 national and province-level marine technology centers and two aquatic breeding centers.

It will add 50 research centers and an 8-square-kilometer national technology transfer demonstration base this year to provide technical backing for the growing marine sector.

wangqian2@chinadaily.com.cn

(China Daily 03/08/2013 page3)