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Free trade future in cars and energy

By Zhao Tingting (China Daily)
Updated: 2009-09-10 08:40

As China's auto industry continues to set records, authorities at the Dalian Free Trade Zone are making plans to become a vehicle export center as well as the nation's largest international energy port, according to Lu Lin, head of the zone's administrative committee.

China is forecast to produce a record-high 12 million vehicles in 2009, Chen Bin, director of the Department of Industry under the National Development and Reform Commission, China's top economic planner, said in Beijing Saturday.

The free trade zone near Dalian Port will take 10 years to become a center of vehicle production, Lu said, when it will have an annual production capacity of 1.6 million units. The auto sector is expected to contribute 8 billion yuan to annual export volume.

As one of China's four vehicle ports and the national pilot area for new energy vehicles, the free trade zone will capitalize on favorable policies to expand its vehicle industry and become a national base for vehicle production, he added.

Five auto parts manufacturing centers will also be established in the free trade zone for engine assembly, chassis, interior fabrication, on-board electronics and other components.

Another key element in future plans is energy resources. The current financial crisis provided the free trade zone the opportunity to upgrade its reserve and distribution capacity in crude and refined oil, liquefied chemicals, liquefied natural gas (LNG), liquid petroleum gas and other petro-products.

To become China's largest international energy port, the zone plans to expand its oil throughput to 100 million tons by 2012 and build five oil berths and new docks capable of handling 300,000-ton vessels and LNG carriers.

Covering 70.9 sq km, the free trade zone is designed for integrated development of shipping, ports and modern logistics.

To boost the logistics sector, improved storage facilities and a network in the free trade zone are planned. Preparations for international trade and transit operations linked to Shenyang, Harbin and Changchun are under development.