Author: Tianjin Wang, Minzu University of China
International inland ports are a unique concept in international economic development. Located at the intersection of railroads and highways in the inland economic centers, they are the ports of commerce open to the outside world following the relevant international transport regulations, treaties, practices and domestic regulations. They are stations facilitating cargo handling, transportation, storage, distribution, and the distribution of related international freight documents. They have facilities and equipment such as parking lanes, cargo inspection, loading and unloading platforms, warehouse yards, sorting plants, office buildings, and production and living facilities. Moreover, they can handle documents, inspect goods, load and unload, and store and distribute them for international freight transportation. From the history of international economic and social development, constructing the international port is essential for inland cities to seek economic growth. It can build an open pattern for inland areas with massive channels, platforms and hubs. With the strong support of the central government and local government departments at all levels, Huaihua City, a montanic hinterland of Xiangxi Tujia and Miao Autonomous Prefecture, Hunan Province in China, has stepped up the construction of the international inland port and deeply integrated it with China’s Belt and Road Initiative and related projects. The economic achievements of the international inland port have already been manifested. However, it is necessary to accelerate the pace of construction and contribute more to promoting the economic and social development of China’s central and western inland regions.
New Path in the Economic Development of Contemporary Countries
The construction of inland ports is relatively new in contemporary countries’ economic development. Many related problems need to be solved by Chinese and foreign experts. The concept of inland ports has been interpreted in many ways. Munford (1980) examined the inadequacy of container handling equipment and available space at the Port of Buenos Aires, Argentina. He proposed a program to develop new container berths at the port with participation from the private sector. The concept of inland port projects emerged for the first time. It is mainly defined as building terminals in the hinterland area to alleviate the transportation pressure of the coastal port corridor and share the freight pressure of the area where the port is located. Since the emergence of inland port projects, scholars worldwide have varied definitions of inland ports. The United Nations Conference on Trade and Development (UNCTAD) defined an inland port as a place inland fulfilling original port functions in 1982 (Cullinane and Wilmsmeier, 2011).
More scholars have conducted related research as inland port construction continues to develop overseas. Walter and Poist (2003), professors at Iowa State University, evaluated the establishment of an inland port in central Iowa. They argue that the inland port concept was introduced to provide facilities and information, enabling shippers and carriers to handle exports and imports better. Roso, Woxenius and Lumsden (2009), research fellows at Chalmers University of Technology in Gothenburg, Sweden, concluded that the construction of inland ports could relieve some congestion in seaport towns and provide improved logistical solutions for shippers in the port hinterland. Inland ports in North America and Europe have been in place for over 20 years. However, scholars have summarized the concepts from actual projects, which are still confined to shippers and carriers and some congestion in seaport cities. In recent years, inland port construction has been generally sluggish, mainly affected by the anti-globalization forces in Europe and North America.
In 2008, China’s central government approved the construction of Xi’an International Trade & Logistics Park, the first inland trade port established in China. People in China have been yearning and struggling to build inland ports using the Chinese style. In August 2019, China’s National Development and Reform Commission issued the Framework Plan for New Land and Marine Routes for Western Regions. In this document, Huaihua City in Hunan Province was positioned as an essential node city on the main channel linking Chongqing, Huaihua, Liuzhou and Beibu Gulf (the National Development and Reform Commission, 2019). CPC Huaihua Municipal Committee and Huaihua MunicipalPeople’s Government decided to promote the construction of Huaihua International Inland Port as a strategic project. The people of Huaihua City work together to speed up the project. On January 6, 2022, Huaihua International Inland Port launched the first international freight train of the China-Laos Railway (Huaihua-Vientiane). It was the first international line from Hunan Province to the Association of Southeast Asian Nations (ASEAN) countries. This train carried goods such as sweet oranges from Mayang, small agricultural machines from Shuangfeng County, and small excavators from SANY HEAVY INDUSTRY CO., LTD., traveling about 2,098 kilometers (Chen, 2022). These products are well-marketed for their high quality and low prices. Mayang Miao Autonomous County of Huaihua City produces sweet oranges with distinctive colors and flavors and abundant juice. In November 2022, sweet oranges planted in the county amounted to 19,000 hectares, ranking first in China in terms of area and output, with a brand value of RMB 2.25 billion (Wang, 2023). As a result, Mayang County was praised as“the capital of sweet oranges in China.” In May 2022, the Hunan Provincial People’s Government issued the“Implementation Plan on Deeply Integrating into the Belt and Road and Supporting the Construction of Huaihua International Inland Port.” The plan elevates the construction of Huaihua International Inland Port to a provincial strategy.
Inspiring Achievements
People worldwide can see a bright future in the concept and actual construction of inland ports and their achievements. Inland ports have been recognized and practiced by more and more countries. Despite the short duration of the Huaihua International Inland Port, its achievements have been very encouraging. When something new grows, it is bound to have many shortcomings. Therefore, it is meaningful to implement the following solutions.
Building an Intelligent Platform for Inland Port Operations
The modern logistics industry is a typical energy-consuming industry with high carbon emissions. China introduced the national strategic goals of carbon dioxide peaking and carbon neutrality in 2020. Inland ports must implement this national strategy to build a new development pattern. China is firmly committed to a green, low-carbon, high-quality development path that prioritizes ecological civilization. It will ensure that the carbon dioxide peaking and carbon neutrality goals are achieved as planned (Central Committee of the Communist Party of China and the State Council, 2021). We must utilize new models, technologies, and systems to build an intelligent inland port by eliminating the traditional approach to infrastructure.
It is necessary to elaborate and effectively implement the Internet+ action plan, laying the foundation for using mobile Internet, cloud computing, big data, and IoT in the future. We can only plan well in advance, build two platforms online and offline, and merge them into an open and efficient synergy. In this way, we can create a perfect scene of production and life in the Internet era for the people in the Wuling Mountain area, where Huaihua City is located. It should widely absorb social capital for intelligent development and improve the existing infrastructure of the inland port. High-tech applications such as self-service customs clearance, advanced machine inspection and intelligent identification should be introduced step by step. Moreover, we must integrate the informatization facilities of Huaihua City and build a comprehensive platform for intelligent ports by applying big data technology. We will continue to enhance cooperation with Chinese and foreign logistics networks at sea, land and air ports, pursue higher economies of scale and strategic mutual benefits, and ultimately realize the highest goal of global intermodal transportation and joint development.
Building an International Inland Port and Promoting Traditional Tea Culture
The construction of Huaihua International Inland Port should parallel the inheritance and promotion of the traditions of the Tujia and Miao ethnic groups. The distinctive cultural characteristics of ethnic minorities in Xiangxi Prefecture are tea planting and sales. Many people’s life practices are related to tea. By 2020, the area of tea plantations in the prefecture reached 50,000 hectares, ranking first in Hunan province. In 2020, the prefecture’s tea production was 13,500 tons, and the comprehensive output value of tea exceeded RMB 5.7 billion (Pu, 2021). Guzhang County has produced Mao Jian tea since the Tang Dynasty. The tea leaves are plump and thick, have a tender texture, and have white hair, and they are of excellent quality. It used to be a tribute to the imperial palace since ancient times. In contemporary times, they are exported to Japan, the United States, and Europe. In 1990, the market price of Guzhang Maojian Tea was as high as 700 U.S. dollars per kilogram in the London market (Xiang, 1992). Currently, the area of tea plantations in Guzhang County is 11,700 hectares.
The green and organic tea plantations have reached 3,000 hectares, and the green and organic rate has reached 25.7%, ranking among the top in China. With the innovative development of the tea industry, Guzhang County was awarded the honor of “The National Demonstration County of Organic Product Certification and the first“Hometown of Chinese Organic Te” in Hunan Province (Lin, Lin and Zhang, 2020). In 2012, after the evaluation and examination by the Trademark Office of the State Administration for Industry and Commerce, Guzhang Maojian Tea was approved to become China’s Famous Trademark for the 1st Batch of Local Public Brands in Hunan’s and China’s Tea Sector (Wu, 2012). Lu Yu (733-804 AD) of the Tang Dynasty is honored as the founder of tea culture. In 780 AD, Lu Yu wrote The Classic of Tea, the world’s first meta-dictionary of tea culture. He believed it best to drink tea because of its cold properties. Drinking tea in silence and looking into ourselves helps us to become intelligent and diligent and to develop good habits of self-discipline and frugality. Tea has been deeply integrated into the lives of Chinese people and has become an important carrier of Chinese culture. Utilizing the brand effect of Guzhang Maojian Tea can promote tourism with tea, develop the tea industry with tourism, and promote the reciprocal activities of tea and tourism. We can organize tea ceremonies, tea tastings, and other events to enhance the attraction and influence of tea culture and attract more visitors.
To develop the charm of tea culture, we need to recognize the shortcomings of tea production in western Hunan. The leading enterprises or co-operatives in organic tea production in Guzhang County have weak comprehensive strength and low management levels, affecting tea planting and sales (Lin, Lin and Zhang, 2020). One of the business models of the organic tea industry in the county is based on the cooperation between the company (tea factory), the base and the farmers. The construction of Huaihua International Inland Port involves the creation of a base from the management system that can fuel the operation of the tea industry. It can sign contracts to purchase organic tea leaves for export, thus establishing strict regulatory rules. Also, farmers occasionally attend lectures on modern production management theories to improve their literacy. In ancient times, tea traveled through the Tea Horse Road to the Central and Southern Peninsula. Guzhang Maojian Tea is being exported to Europe and Africa by leveraging Huaihua International Inland Port’s strength in the 21st Century Maritime Silk Road.
Learning from the Sister Provinces and Cities and Overseas Cases
The construction of Huaihua International Inland Port started late and accumulated little experience. Therefore, learning from other regions should be a must. Xi’an is one of China’s first inland trade ports. In 2014, the Chinese government approved the establishment of the Xi’an National Aviation City Experimental Zone. Xi’an has become a three-dimensional international open city with rail, sea and air transportation connections (Jia, 2017). Chang’an, the starting point of China’s ancient Silk Road, is now open to the outside world on an even larger scale. The Chang’ann” China-EU liner has been regularized to run 16 central lines, covering 45 countries and regions along the Belt and Road. Reform and opening up have substantially increased Xi’an’s economic strength, greatly enhancing its support for Shaanxi province and other regions. From 2018 to 2020, the contribution of the Xi’an International Inland Port’s Logistics Subsystem to its hinterland composite system was significantly higher than that of the hinterland city’s economic subsystem. In 2020, it surpassed that of the hinterland cities (Wang, 2022). Xi’an has established an information-sharing platform linking the inland port and the airport with functions of information convergence, data sharing, cargo tracking and financial services (Wang, 2018). With much experience constructing Xi’an International Inland Port, Huaihua should learn more and make innovations to move forward.
At the same time, Huaihua still needs to learn from the successful experiences of other countries. Langen (2007), a professor at Erasmus University Rotterdam, the Netherlands, studied the port competition and selection in the imports and exports of goods in Austria’s five seaports. He proposed the concepts of “monopoly hinterland and contestable hinterland” arising from the construction of new port hinterlands by people competing for market shares to exchange goods. For exports, western Hunan teas, such as Guzhang Maojian Tea, must compete internally and not be confined to how they are passed down.
Nguyen at the Maritime University in Haiphong, Vietnam, and Thai at the University of Economics Ho Chi Minh City et al. (2021) argued for a multi-criteria and multi-stakeholder approach to assessing the role of inland ports. They developed a hierarchy of evaluation criteria that involved three primary stakeholder groups: inland port users, seaport participants, and the community. They emphasized the primary role of inland port users in driving the port’s success. Huaihua International Inland Port should actively connect with various regional industries and develop in synergy to realize the construction goal.
Building a Modernized International Inland Port According to Local Conditions
Huaihua International Inland Port is a large-scale project with many modern elements. In particular, the initial capital construction involves plots of land and buildings. Therefore, it must be adapted to the local conditions and emphasize scientific planning. Seguí and Puig et al. (2016), research fellows at the Universitat Politècnica de Catalunya in Barcelona, Spain, studied 27 inland ports of the European Union (EU). These ports are different in size, business situation and geographic location. The port requires detailed and varied policies and regulations to implement green initiatives and close supervision to ensure they are strictly regulated. In this way, the inland port can improve its environmental performance.
The scientific planning of international inland port construction is crucial. Planning technical routes according to the actual situation for land, water, materials, energy conservation, and environmental protection is necessary. We must analyze comprehensive information on buildable land, select construction materials, and apply mathematical models to determine diverse resource-saving strategies. Logistics and transportation routes should be optimized, and environmental protection measures should be strengthened to maximize benefits with minimal investment.
The international inland port must strive to promote the economic development of Huaihua and serve the development of local undertakings by integrating links and sharing the dividends of reform and opening up. Farmers benefit from the increased volume of exported agricultural products, which helps develop inland port logistics. Agricultural products, like sweet oranges and other fresh fruits, are sold seasonally, demanding time-limited transportation and sales. For this reason, the relevant departments must create a cross-border e-commerce industrial park and vigorously introduce cross-border e-commerce strategic partners. It can promote breakthroughs in online and offline experience sales of cross-border e-commerce for rural agricultural products.
Enhancing the Awareness of the Strategic Positioning
As mentioned above, in the deepening process of globalization, the international inland port, as a critical platform for opening up inland areas, is crucial to promoting regional economic development and strengthening international economic and trade cooperation. Huaihua International Inland Port carries the expectations and dreams of Huaihua and even the whole Hunan region for opening up and rising. It is also important in China’s international vision and high-level strategic layout.
The construction and development of Huaihua International Inland Port is a significant initiative of the people of Huaihua to respond positively to China’s Belt and Road initiative and Western Development Strategy. Since the construction of the inland port started, Huaihua Municipal People’s Government has worked closely around the goal of building a cargo consolidation center for Central and Western China to ASEAN and an important channel and node for Hunan to dock with RCEP. It has pushed forward the construction and development of the inland port. In this process, the people of Huaihua deeply realize that the development of the port needs the port personnel’s efforts, as well as the support and cooperation from all parties.
Dr. Shu Xiaohui et al. wrote an incisive academic book titled Huaihua International Inland Port, published in the United States in November 2024. The book provided an excellent opportunity for Huaihua’ people to think theoretically and explore in practice. Moreover, the relevant government departments of Huaihua City can systematically summarize the experiences and achievements of inland port development, deeply analyze the existing problems and challenges, and explore future development. By reading the book, we can see that the authors have conducted a comprehensive and in-depth study on Huaihua International Inland Port. They analyze its strategic positioning, competitiveness, spillover effect, impact on China-Laos trade, and the port’s effect on residents’ housing demand. Besides, they explore the development of the port in depth and put forward many targeted suggestions and countermeasures. These research results offer essential guidance for further clarifying the development idea and optimizing the development strategy of Huaihua International Inland Port.
It should be noted that the authors have proposed the creation of the Huaihua International Inland Port Special Zone as a strategic initiative in the book. In the initial stages of reform and opening up, China planned and developed the special economic zones of Shenzhen, Zhuhai, Shantou and Xiamen, with preferential measures such as tariff reductions and exemptions. The Chinese government created a favorable investment environment, encouraged foreign investment, and introduced advanced technology and scientific management methods, thus promoting China’s overall economic development. The Huaihua International Inland Port Special Economic Zone’s development is feasible today and an indispensable option at this stage. Tax exemptions and appropriate subsidies can create a favorable environment for the export of technology, capital, commodities, and management. It can encourage inland manufacturers to go abroad, expand the international market, and improve the international competitive advantage of enterprises. Moreover, it can accelerate the development of the economy of the international inland port special zone. Then, it can revitalize China’s inland areas for the comprehensive and high-speed development of the national economy.
Since its construction, Huaihua International Inland Port has made remarkable achievements. Its infrastructure has been constantly improved, and logistics and transportation capabilities have been substantially enhanced. It has increased its trade exchanges with regions in China and abroad, significantly enhancing its driving force for the regional economy. These achievements cannot be separated from the hard work of all the people who have contributed to developing the inland port. However, we realize that we must raise our awareness of the strategic position of the Huaihua International Inland Port. We should reconsider it from China’s national economic development.
In the future, we expect Huaihua International Inland Port to become highly influential and competitive. It will become an important hub connecting the inland and international markets, injecting new vitality into the economic development of Huaihua and providing solid support for the opening up of Hunan. It will make further breakthroughs and improvements in logistics and transportation, industrial development, international trade, economic impetus, and urban development. At the same time, Huaihua International Inland Port will also trigger significant spillover effects. Firstly, it will vigorously drive the economic development of the neighboring regions and promote in-depth inter-regional cooperation and exchanges. Secondly, it will actively promote industrial upgrading and innovation and comprehensively enhance the industrial competitiveness of the whole region. Thirdly, it will create more jobs and improve people’s income and quality of life. Finally, it will further strengthen the close ties with the international market and significantly enhance the status and influence of China’s inland areas in the international economy. We believe that with the joint efforts of all parties, Huaihua International Inland Port will play a more critical role in international economic and trade cooperation and promote the leapfrog development of China’s inland economy.
Reference : Wang Tina Jin, Published article.