Connotation, Composition, and Characteristics of Location Value of Free Trade Port—An Empirical Study of Ningbo Zhoushan Port ()
1. Research Background
In the context of the era of economic globalization, the economic exchanges between countries and regions are becoming more and close. As an important way of importing and exporting, the special status and value of free trade port trade are increasingly reflected. In Boao Forum for Asia annual meeting also mentioned adhering to and expanding the opening of free trade ports, attaching great importance to international cooperation, and accelerating the exploration and construction of free trade ports. At the same time, China should continue to adhere to the construction and development of the Belt and Road Initiative, strive for more trade dominance, and follow the path of innovation and opening up of free trade ports with Chinese characteristics.
Therefore, under the new background of keeping pace with the times, the development goals and measures of free trade ports have been innovated and changed, and the value contained and the added value generated by continuous development activities will be enhanced with the strengthening of globalization. The location value of free trade ports also needs to be given a new era significance and value.
Therefore, based on the actual situation of China, this paper gives a new definition of the location value of free trade ports from the perspectives of economy, politics, culture, science, and technology, expounds its value connotation, excavates in-depth, improves the location value of free trade ports, assists the construction and development of the Belt and Road and the Maritime Silk Road, explores the free trade ports with Chinese characteristics in the new era, optimizes the quality of free trade ports, promotes a new round of high-level opening up, expands the international trade market, and also provides a new perspective for the economic cooperation of free trade ports in the world.
2. Research Status
German economist E.A. Kautz carried out a wealth of research on the evolution of port location spatial structure, published in 1934, marking the formation of port location theory. So far, after nearly two hundred years of development, many scholars at home and abroad through research and analysis have formed a relatively perfect location theory system and research methods. System theory should be proposed by the Bird Any port model, and then scholars modified the variant to obtain a new model. Carpenter (2018) examined the methods adopted by the Port of Cafe in Sweden to open the port. The port created a new principle of land use circular economy with contaminated dredging materials, demonstrating that the use of the circular economy principle is a feasible way to ensure the future of the port and promote the sustainable development of the port, and it is also a feasible way for the port to operate cities or regions. Monios (2018) explored the intersection between port cities and port-centered logistics. For port-centered cities, it is concluded that ports need to coordinate their logistics from a regional perspective and determine which activities are close to ports, followed by port-centered logistics needs to be better integrated with urban freight and urban logistics (Guo, 2018).
Generally speaking, the existing free trade ports have certain location advantages, but the domestic research on the interpretation and elaboration of the location value of the free trade port is not rich enough, so it is not in-depth to study the value of the location value for the development of the free trade port, which is the starting point of this paper (Li, 2018; Li & Wu, 2018).
Yang mentioned that location conditions, natural conditions, and infrastructure are powerful factors affecting the competitiveness of free trade ports (Yang et al., 2018). The positioning of China’s free trade port can be based on the characteristics of free trade zones under different geographical conditions, and the construction of free trade ports with different characteristics (Wang, Jiang, & Wang, 2018). Chen made an empirical analysis of the influencing factors of the location choice of the free trade pilot area and obtained the key points of location selection to improve the location value of the free trade port (Chen et al., 2018). Wang studied the spatial distribution characteristics and influencing factors of port logistics enterprises, and concluded that the choice of port location has a great influence on it. Through the practical investigation of ports in Ningbo, it is concluded that Ningbo logistics enterprises are centripetal agglomeration and the circle distribution pattern is obvious (Wang & Meng, 2018). Xu believed that the spatial economic system formed by ports and hinterlands was relatively complex. They used a variety of methods to define the scope of the hinterland and studied the evolution of the hinterland space of ports. They concluded that the geographical location of ports, infrastructure construction, and the scale of hinterland cities were the main factors for the evolution of the hinterland space (Xu et al., 2018). Zhu proposed that when choosing the location of free trade ports, they should choose the locations that have already been equipped with basic port construction, such as superior geographical conditions, good maritime conditions, and a relatively prosperous local urban economy, and then make overall consideration according to national policies (Zhu et al., 2018a). Wang believed that to avoid the excessive cost of institutional transformation and implement a higher standard of first-line liberalization, location selection should be carried out from three aspects of port strength, port self-center and port route quality index to improve port status (Wang et al., 2018). As the main port in China, the evolution of the location and function of Shanghai port is very worthy of study. Zhang specifically analyzed this, summarized the spatial evolution trajectory of Shanghai port and the effective way to expand its function (Zhang et al., 2016), enriched the theoretical research of port geography, and provided a reference for the optimization and hub construction of the single port.
Tang studied the influencing factors of China’s export trade to countries along the “Belt and Road”. The results show that the population, GDP, language commonality, and trade freedom of the countries along the “Belt and Road” have an impact. This study well reflects the external influence of location value (Tang et al., 2018). At present, the construction policy of free trade ports has become the focus of port development (Tian, 2018). To accelerate the construction of free trade ports, Lan proposed that the current exploration and construction of free trade ports should focus on opening up, innovation, policy, and management through the analysis of Shenzhen (Lan et al., 2018). Zhu et al. (2018b) also pointed out the establishment of free trade ports with Chinese characteristics, enhancing government regulation, improving the level of the service industry, enhancing scientific and technological capabilities, and accelerating the construction of smart ports (Zhu et al., 2018). Wang put the introduction and training of high-tech talents in an important position in the development of free trade ports (Wang et al., 2018). Peng proposed that China’s free trade port construction should first be based on its situation, and then learn from international experience to build a new pattern of comprehensive opening up to form a high standard of international opening level (Peng et al., 2018). At the same time, Zhang believed that free trade ports should enhance their reform autonomy (Zhang, Huang, & Hu, 2017). They can promote trade liberalization and facilitation and improve development efficiency by formulating relevant port laws and policies, and then strive to build free trade ports with Chinese characteristics from the aspects of expanding offshore business space and broadening the channels of talent introduction, to ultimately promote the upgrading of domestic industrial structure and China position in the global value chain (Zhang & Cheng, 2018). Zhu put forward that the construction goal of free trade port should be based on reality, pay attention to precision and clarity, and take the free trade port as the core to set goals. After doing a good job of preliminary research and a specific implementation plan, it will be implemented and promoted (Zhu et al., 2018a; Zhu et al., 2018b). Shou (2018) proposed that port integration replaces extensive expansion construction. The application of scientific and technological innovation promotes the improvement of port quality, and the construction of automated terminals will become a hot spot for port development in China (Shou et al., 2018). In addition, to the international experience, Huang put forward the negative list management system that has certain enlightenment on the construction of China’s free trade port (Huang et al., 2018).
In summary, the characteristics of sustainability, openness, and innovation are the main characteristics of the location value of free trade ports. Under the condition of improving the infrastructure of the free trade port, it is necessary to create high-quality network platform management, improve the network of location value, and actively open up to the outside world, to make the opening up of the location value of the free trade port develop well, and then improve its external influence from domestic and international perspectives, to make the development of the free trade port more comprehensive, rapid and high-quality.
3. Basic Connotation of Location Value of Free Trade Port
“Location” refers to the location of things, including the meaning of “location, layout, distribution” and other aspects. On the other hand, it refers to the spatial and economic connection between things and other things. Generally speaking, the basis of location value is the embodiment of geographical location, but the economic level value of the location determines the height of location value.
This paper argues that “location value” refers to the economic value realization of something formed under the action of natural factors, economic factors, and social factors of the location, a comprehensive value system, with the concept of system balance and overall interest tolerance.
Port location value refers to the economic capacity and value of the port jointly determined by the natural resources, economic level, and social and cultural environment of the port location. It is a sustainable development value based on the advantages of the port itself, combined with culture, policy, science and technology, and other factors.
3.1. Connotation of Port Location Value
Based on the above definition of port location value, location value is a comprehensive concept, its connotation can be introduced from the following three aspects:
3.1.1. Value of Natural Elements
The natural factor of free trade port is the natural condition that decides the foundation construction of free trade port. For example, the most basic port construction site must be coastal areas, with a certain ship sailing in the berthing conditions, the sea area is stable, with less wind and waves, to ensure the safety of port ship navigation, and has good land conditions for the processing and storage of goods and transportation. The more perfect the natural elements are, the higher the basic scale and value of the port will be. In particular, areas that can be developed as ports generally have the following conditions:
First, flat terrain and dense transportation lines are conducive to transportation and port infrastructure construction.
Second, good navigation conditions ensure smooth and safe navigation conditions. To allow the ship to enter and leave the bay in four seasons, the waterway needs to have good water conditions: winter is not frozen, and wind and waves are small, to ensure the stable navigation of the ship. Suitable channel depth and width provide enough radius for ship turning.
Third, good berthing conditions: with enough water surface and berths for the ship to arrange anchored and carry out loading and unloading operations, the berth number of the port is the basis of the port’s throughput capacity to a certain extent, which is proportional to it. At the same time, the more the berth number, the less the waiting time of the ship in the port loading and unloading, and the efficiency is improved. In addition, if the water surface width and depth of the port are deep, some large container ships can be accepted, so that the port is more likely to become a hub port.
3.1.2. Value of Economic Factors
In this paper, the value of economic factors is understood as the value embodiment of the economic development level, economic system, and economic industry of a country or region. This paper briefly describes the following aspects:
First of all, from a macroeconomic perspective, in this era of globalization, economic openness also occupies an important position. In the country’s economic system environment, free trade ports actively expand economic openness, enhance international ties, reach more international transactions, and optimize the level of import and export, all of which are an improvement in the value of economic factors.
Secondly, from a relatively micro perspective, one of the important determinants of port economic value understood in this paper is the development level and development potential of the port economic hinterland. At present, the famous free trade port has a strong economic hinterland, hinterland economic development determines the height of the port development. For example, the hinterland of the traffic conditions is the basis for the formation and development of free trade port logistics, to ensure smooth port transport. The industrial structure, industrial types, and industrial layout of the hinterland affect the nature and market size of the port. The technological level and manufacturing level of the hinterland affect the intelligence level and supply adequacy of the free trade port. In addition, many hinterland factors will affect the economy of free trade ports and affect the development of free trade ports.
3.1.3. Value of Social Elements
Social factors usually refer to values, traditional cultural thinking, national characteristics, population size, consumption structure, and level in society.
First of all, as a populous country and a developing country, China’s s comprehensive national strength is getting stronger and stronger, and people’s living standards and consumption levels are gradually rising. With the increase of openness, the consumption structure of residents has been upgraded from food and clothing type to well-off type, and the people’s consumption vision has also been improved. The consumption-ability of international commodities has been improved, creating new market final demand. As the main way of international trade, free trade port trade is undoubtedly a very good development trend and space for free trade ports.
Second, there is an indivisible relationship between the free trade port and the city. The two are interdependent and develop together. It can be said that the port is used for the city and the port is developed by the city. The acceleration of contemporary urbanization makes China’s economy in a relatively favorable position in international competition. It is a good time to vigorously develop port trade and improve the location value of ports. How ports rely on the existing economic level and technical conditions of cities is a part of the self-improvement of ports. The prosperity of the development of free trade ports can reflect their location value.
Finally, cultural traditions and values are also part of the value of social elements. In the context of economic globalization and China’s increasing emphasis on opening up, in addition to the trade of goods between countries, there are more and more cultural exchanges between countries. China’s culture has a long history, inheriting and carrying forward the excellent national culture, absorbing the world culture, and advocating cultural diversity, so that cultural acceptance is higher, their values are more open, and they are more willing to accept new things, indirectly promoting trade exchanges and improving the era status of free trade ports.
4. The Basic Composition of Location Value of Free Trade Port
4.1. Economic Support
The economy is the creation, transformation, and realization of value. From the micro point of view, the prosperity of a family depends on economic prosperity, the development of a city depends on economic development, and then to the macro point of view, the foundation of a country’s prosperity is the economic level, so the location value of the free trade port must have a close relationship with the economy. It can be said that the infrastructure construction and subsequent development of free trade ports need strong economic support to complete.
Taking Shanghai as an example, Shanghai, as an international metropolis, constantly pursues the development of innovation, transformation, and upgrading of the economic system. Through efforts, in 2018, the total GDP exceeded 3 trillion, which also led to the development of Shanghai Port to explore the establishment of a free trade port. Shanghai Port is China’s Yangtze River Delta trade port, its open development will play a great role in promoting economic development. At the same time, economic development will provide the continuous impetus for the construction and development of Shanghai Port.
Taking Hainan as an example, China’s first free trade port was established in Hainan, with a huge economic investment. On the one hand, the establishment of free trade port is to promote the economy of Hainan, but on the other hand, it also needs the existing Hainan economy to support the construction and improvement of free trade port projects. For example, in 2019, the total investment in Hainan’s construction of free trade port reached 513 billion yuan, which is the most powerful economic support to support Hainan’s planning and construction of a high-standard and high-quality free trade port with Chinese characteristics.
Based on the development of the above two city ports, it is concluded that the development of the port is inseparable from the strong government economic support. With economic support, we can speed up the construction of port infrastructure, carry out new project construction, build a high-level open port, and realize the development of free trade port with Chinese characteristics.
Secondly, from a small point of view, the economic hinterland of free trade ports also plays a vital role in port development. The overall development level of the economic hinterland is the foundation and guarantee of port development. The scale of the economic hinterland reflects the scale of the port-related equipment industry to a certain extent, such as the number and scale of manufacturing enterprises, services, and logistics enterprises. A port has a larger economic hinterland, its industrial chain is relatively more perfect, and the industry is equipped with higher-end, higher technology levels. Large-scale manufacturing, for example, can provide ports with adequate supplies and the capacity to process imported goods. The high-end logistics industry can bring great convenience to freight transportation and save transportation costs. The service industry improves the service quality of the port, and the transformation and upgrading of the service industry will also promote the transformation and upgrading of the free trade port, affecting the development direction of the port. In general, the port economy is closely related to the economy of the hinterland city. The larger the scale of the economic hinterland is, the higher the level is, and the more prosperous the relevant industrial economy is, the more excellent the port has the potential customers and market space and has a broader development prospect.
4.2. Policy System
Policy system is the daily operation of the free trade port should follow the leading policy of the party and the state, subject to the constraints of relevant laws and regulations, and then make the free trade port reasonable and orderly operation.
Under the policy of vigorously implementing opening up, when trading, free trade ports should establish and improve relevant policy systems according to their conditions and characteristics, such as tax policy, regulatory system, industry access rules, foreign exchange management system, talent introduction, and management system, to increase international trade exchanges and improve the value of free trade ports.
A major core of free trade ports is institutional innovation. At present, China vigorously promotes reform and adheres to the road of free trade ports with Chinese characteristics. The key is to implement a higher standard of trade supervision system of “first-line liberalization” and “second-line safe and efficient control”. According to the actual situation of the free trade port, based on ensuring the controllable risk, the trade control and declaration of imported goods are simplified to the maximum extent, the information monitoring is well done, the management system is suitable for itself is established, and the loose and free policy environment and tax collection system are advocated. Then, according to the actual development characteristics of the free trade port, the corresponding system innovation and adjustment are carried out, and the relevant system requirements that are most suitable for the development of the free trade port are found to improve the location value.
4.3. Cultural Heritage and Innovation
Culture is the connotation support of the development of free trade ports, and provides fresh vitality for the development of free trade ports. On this basis, ports should also formulate development strategies with innovative thinking, which cannot lack cultural support.
Innovation is the power source of the development of free trade ports. Combining with the current situation of free trade port, reasonable innovation is carried out, and the innovative port culture with development space and vitality is cultivated, which should focus on strengthening the three major port cultures: service culture, brand culture, and characteristic culture.
As a service-oriented industry, ports should closely understand the needs of the national economy, take economic and social services as the goal, strengthen the construction of free trade port service culture, establish service awareness, improve service quality, improve service efficiency of departments, and create a healthy and civilized port service style.
Moreover, when it comes to brand culture, the construction of port brand culture should take Chinese ports as the major brands, and then go down to the internal brands of ports, such as industrial brands, product brands, and regional brands of ports, to inject humanistic connotation into the brand culture and build a harmonious port. Strengthening the brand construction of the free trade port, giving the brand strong vitality and competitiveness, improving the reputation of the port, and helping the construction of port civilization.
Finally, the free trade port culture should also strengthen the content of characteristic culture. According to the characteristic culture and national customs of the region where the port is located, it is the cultural motivation and value connotation of the continuous development of the free trade port to construct the characteristic port with cultural symbols, form the characteristic commodity culture according to the characteristics of port goods, support the promotion of cultural innovation, and construct and develop the characteristic port culture with the Chinese flavor.
4.4. Industrial Development
Among the components of the location value of free trade ports, industrial development plays an indispensable role. A well-developed free trade port is successfully developed under the joint influence and role of industry, manufacturing, service industry, financial industry, and other industries. The promotion of free trade port location value is inseparable from the solid industrial foundation.
First, port and industry are inseparable. The industry provides raw materials for the export trade of free trade ports and increases its export trade volume. It provides raw material processing and technical processing for imported goods. The development of free trade port industrial zone also improves the processing level of ports for imported goods. From the perspective of logistics, the close distance between the port and the manufacturing park is not only conducive to the supply and supplement of raw materials and the matching manufacturing of imported products but also conducive to reducing the cost of the entire port logistics.
Second, under the trend of economic globalization, the status of service trade is increasing, which plays an important role in the transformation and upgrading of a free trade port. Vigorously developing port service industry is an important trend and a common choice for international strong ports. Usually, after some famous international ports develop to a certain stage, they will work hard to improve the port service industry, especially for the development of high-value-added port services. Because only the free trade port service function is perfect and powerful, the value of the port can be truly improved.
On the other hand, to speed up the transformation and development of the modern service industry, we must first strengthen the improvement and upgrading of port infrastructure, build a port public information platform, and integrate port resources, to achieve timely sharing of information and improve the efficiency of port services. Accelerate the development of emerging trade in services and technology. Continue to strengthen the port logistics platform construction, innovation of logistics services, improve the efficiency of logistics services, and finally the comprehensive team port to implement low carbon environmental protection system, improve the level of sustainable development of the port.
Third, the development level of the financial industry also has a great impact on the location value of the free trade port.
At present, China’s financial sector is a low degree of openness, and international economic and trade rules are not international enough. With the comprehensive opening policy put forward in the report of the 19th National Congress of the Communist Party of China, financial liberalization and opening up are currently major development goals of China’s free trade port. For the location value of free trade port, on the one hand, the openness of the financial market and the development of the financial industry are the embodiment of the local acceptance of foreign investment and trade activities and the level of integration with the international market. On the other hand, we should balance financial openness and financial risk control, reduce its impact on location value, accelerate the construction of financial supervision mechanisms, and create a complete set of financial product evaluation systems to enhance the location value of free trade ports.
4.5. Science and Technology Level
Technology is the foundation of a country’s s strength. The rapid development of China’s economy, especially the acceleration of the process of international economic integration, the rapid development of port business, and the pursuit of higher efficiency, more reliable security, and higher location value, put forward higher requirements for the scientific and technological level of port construction and operation. As a basic component of the location value of free trade ports, the level of science and technology can be reflected in many aspects.
First of all, under the premise of following the development trend of the modern economy, China’s port industry actively carries out port mode innovation, port science and technology application, promotes the scientific and technological transformation of port facilities and the construction of Internet platform, optimizes the port energy structure, builds green science and technology port, and realizes the transformation and upgrading of traditional ports.
Secondly, at present, more and more ports aim to build “smart ports”, which is a systematic port ecosystem integrated with the Internet and terminal automation technology. It is an important means to realize the integration of business documents, automation of production operations, intelligent internal monitoring, mobile user services, and the collaborative whole business. Such intelligent port construction, must not lack the support of science and technology. Therefore, more and more free trade ports take value innovation and open innovation as the new pattern, focusing on strengthening the level of science and technology, building smart ports, implementing the new concept of development for ports, adapting to the new normal of economy, and achieve transformation and development.
In addition, the level of science and technology drives the development of the network, and network informationization is the basis of port trade facilitation, financial services, customs supervision, and risk management. With the vigorous development of electronic information network technology, trade is also more dependent on the network information service system. Through portable network information, the information processing efficiency of free trade ports is improved. Famous ports with advanced technology, have a set of suitable for their electronic information platform, to improve the efficiency of port operations, enhance regulatory capacity, and improve trade facilitation, these are free trade port location values.
5. Basic Characteristics of Location Value of Free Trade Port
5.1. Openness
Openness brings progress, and closure leads to backwardness. The realization of location value is closely related to the all-around opening of a free trade port. The high-level openness of free trade port location value is mainly reflected in the following aspects:
First, opening up from an economic perspective.
Referring to the opening of the economy, on the one hand, it is immediately thought of the opening of the “Belt and Road”, and the “Belt and Road” strategy is an important era initiative for China to achieve going out. Only economic opening can find opportunities, seize opportunities and create opportunities to achieve the goal of a national free trade port. The Belt and Road Initiative is oriented toward openness, and the countries along the route are mainly developing countries, which is very beneficial for China to export products and import raw materials and is a win-win strategy for cooperation. In addition, “The Belt and Road” has assisted several less developed countries along the route, strengthening transport facilities in those countries, and helping people in poor countries to solve the problem of food and clothing, all of which are very helpful for opening up, contributing to the flow of economic factors and forming more open and balanced regional economic cooperation. At the same time, the two paths of the Belt and Road are consistent with the existing port pattern. In the process of developing free trade ports, China makes full use of this position advantage to help the construction and development of free trade ports.
Second, openness in the service sector.
Looking at the opening of some ports in China, there is a common opening characteristic, which is the opening development of financial services and service trade. In the past few decades, China has made great progress in promoting the related development of the financial service industry. Opening up to the outside world, it has increased competition within the industry, thus prompting some financial service industries in China to innovate and create, gradually upgrading the structure of the financial service industry and enhancing the ability to resist risks. Due to the current level of China’s financial openness remaining to be improved, there are still many constraints in the financial market, so there is still much room for progress in this area in the future.
At the level of service trade, China has been facing the dilemma of a service trade deficit, which is unfavorable to the development of port service trade. Therefore, enhancing the opening of the free trade port in the service industry, enhancing international competitiveness, accelerating their own pace of innovation, reducing excessive dependence on service imports, increase the breadth and depth of the service industry market opening is the direction of the free trade port has been working hard.
Third, openness in terms of culture and education.
The opening of free trade port is not only limited to economic policies, but also culture and education. With the pace of internationalization, long-standing Chinese culture is also constantly approaching internationalization. For example, China’s s tea culture is a good explanation, through the export of tea this commodity, not only is the export of tea, but also carrying forward the Chinese tea culture and tea spirit, on the contrary, we also have access to a lot of foreign cultures, such as food culture, festival culture, etc., and with the development of “the Belt and Road”, to the world to show Chinese characteristics, the opening of this culture will be better and better.
In addition, it is also open to education. The most obvious are overseas education and exchange education, which is the most typical kind of education openness. China ports attach great importance to the cultivation and introduction of high-quality talents and hope to have more talents with all-around development to develop the future of and provide space for excellent talents at home and abroad.
5.2. Innovation
The innovation of free trade port is one of the characteristics of its location value.
The significance of institutional innovation of free trade ports is that it is an important way to support the development of an open economy and build the most competitive international free trade port system in China. The core is to carry out research and practice around the key and difficult points and key points of the reform requirements in the new era in the aspects of the tax system, financial openness, trade supervision, and financing management, and to integrate with the international highly open trade standards to promote the coordinated development of the regional economy. Therefore, free trade ports should have a breakthrough in tax incentives, institutional innovation, and free trade innovation, and gradually improve the level of innovation and creation of free trade ports.
In addition, the introduction system of talent training in free trade ports is also a major point of innovation. Free trade port is the gathering place of high-end factors such as logistics, capital, and enterprises. The operation of the port area is no less than personnel in the fields of trade, engineering technology, and finance. With the development of free trade ports, the goal of talent introduction and training is also changing. To improve the innovation, efficiency, and openness of the port area, it is necessary to have comprehensive professional talents with a solid foundation, broad vision, and extensive knowledge. Therefore, the training and introduction of talents should also be relatively invested, such as the establishment and improvement of the security system for the introduction of talents, the innovation of a talent management system, the protection of talent knowledge and skills training system, so that more talents play their respective roles in the free trade port, maintain the innovation vitality and high level of permanent development of the free trade port.
5.3. Sustainability
Port is an important part of national development and an important part of environmental protection. To realize the sustainable development of free trade ports, it is necessary to carry out green environmental management of ports. Since the port is closely related to the surrounding environment, such as the cleanliness of the port water surface and the cleanliness of the water quality, it will affect the normal operation of the port. To ensure the high-quality and orderly development of the port, it is necessary to pay attention to the green port, so that the free trade port can develop sustainably.
Then, the sustainable characteristics of the location value of the free trade port can be measured from the following two aspects: first, the status and development of the port itself: according to the excellent degree of natural location conditions of the port, port operation status and port resource utilization efficiency. Two is the sustainable development of port cities, good port cities affect the port source of goods is sufficient, whether the economic environment is good and whether there are policies to support the environmental management of the port.
The development mode and concept of modern free trade ports are undergoing great changes, and new progress has been made in port environmental protection at the level of sustainable development: actively building low-carbon ecological ports and improving the capacity of port sustainable development. And with the expansion of port functions and the growth of comprehensive demand for services, it strives to become a comprehensive ecological port and develops a free trade port in the direction of low-carbon ecology.
5.4. Boundary
The boundary of free trade port location value consists of two aspects: one is the boundary of geographical location, and the other is the boundary of market. On the one hand, the geographical boundary is called the port boundary, which is the boundary of the port range. Usually, it is divided according to the geographical environment, such as coastline, lighthouse, and landmark buildings. It will also be defined according to the port equipment or the industrial needs of the port area. And by latitude and longitude. A variety of border demarcation methods can determine the scope of the free trade port.
On the other hand, from an economic point of view, market boundaries define the geographical location or scope in which products or services can be effectively sold. The rapid development of ports has led to a continuous increase in port throughput. A successful free trade port has become a trend to establish its feeder port, and strive to make itself an international hub port. And with the increasing pressure of competition in the international port, to explore the location value of the free trade port, when the port continues to expand the port market, it becomes extremely important to actively develop the port economic geography area, expand the port economic hinterland and expand the market boundary.
5.5. Dependence
Port location depends on excellent natural conditions, and appropriate water depth, channel conditions, climate conditions, and so on are the most basic value of the location value of free trade ports.
The infrastructure construction of ports depends on a certain level of economic development and the scientific and technological level of the port location. The higher the level of economic science and technology is, the more stable the infrastructure construction is and the more diversified and intelligent the function is.
Ports also depend on the development of their cities. Cities are the basis and support for port development, and their development level directly affects the development status and prospects of ports. The development of cities can not only promote the growth of trade volume but also provide various services for the port industry. Generally speaking, the GDP of the city where the port is located is generally proportional to the port throughput. The proportion and scale of the tertiary industry in the city where the port is located will also indirectly affect the throughput and operation level of the local port, as well as the internationalization level of the economy of the city where the port is located and the proportion of foreign investment will affect the import and export trade volume of the port. In addition, the collection and distribution system of the city where the port is located determines the breadth and depth of the hinterland’s s cargo source, and the hinterland cargo source is the basis for the survival of the free trade port. The efficient collection and distribution system promotes the vast direct hinterland and indirect hinterland. The continuous transportation of goods to the port increases the business volume of the port and promotes its development of the port.
6. Regional Value Mining
6.1. Innovative Shipping Business
The shipping industry is a traditional global industry with high risk and high capital rates, including shipping finance and shipping insurance. The innovative shipping business plays a very important role in improving the soft power of free trade ports. At present, China’s shipping financing channels are single, lack of professional shipping financial institutions, a lack of relevant policy measures, and an imperfect shipping insurance system. Therefore, to improve the value of free trade ports, we must implement the strategy of innovation and creation, which can be improved and innovated from the following aspects:
First of all, it is necessary to expand shipping financial channels, improve port logistics and financial resources through innovation, build shipping capital market channels, and expand the shipping industry market.
Secondly, it is necessary to encourage and support the establishment of domestic shipping financial institutions, give policy support, and give preferential treatment for funds. It is also possible to carry out training and publicity for the establishment of some shipping financial institutions so that more SMEs can be able to establish shipping financial institutions, and learn from some international experience to improve the professionalism and characteristics of financial institutions. Support information technology platforms to realize the scientific and technological operation of shipping financial institutions.
On the other hand, it is shipping insurance. In the trade of free trade ports, there are risks in shipping goods. There will be some natural disasters or unexpected disasters at sea, resulting in the loss of goods. The existing insurance generally includes waterlogged insurance, fire insurance, all insurance, and so on. However, due to the internationalization level of China’s insurance companies service needs to be improved, it cannot meet the needs of customers in a better and timely manner. Therefore, free trade ports should enhance their competitiveness in shipping insurance, improve their own enable customers to master first-hand information and claims on time, and improve the security of the shipping business.
6.2. Breaking the Old Pattern and Expanding the Port Boundary
Expanding port boundaries is also a key point in enhancing the value of free trade ports. China’s sports mostly follow the traditional way of boundary identification. To improve the location value of the port, it is necessary to expand the port boundary.
Some fast-growing and better-developed ports can learn from the development experience of free trade ports at home and abroad, learn the judgment method of port boundary and the measures to expand the boundary, speed up the infrastructure construction of port terminals and transportation networks, reduce the handling fees of port terminals and the transportation costs of raw materials and products, improve the efficiency of port intermodal transport, promote the construction of containers and international hub ports, accelerate the construction of radiation route systems, expand the maritime and land boundaries of free trade ports, so that the market boundary of ports can be expanded as much as possible, and strive for more market space and opportunities for free trade ports.
6.3. Emphasis on Sustainable Development
The most important value of the location value of free trade ports is sustainable development. A port can be called a successful, potential, and valuable port only if it has the capacity for sustainable development. The sustainable development of free trade port needs a series of environmental protection measures to improve the utilization rate of resources, minimize environmental pollution, and thus become a green and harmonious port. The free trade port area can formulate relevant green regulations, requiring people in the port area to learn green environmental protection knowledge, improve environmental awareness, and practice in daily life to ensure environmental cleanliness in the port area. It is also necessary to improve the level of science and technology in the port area, reduce the waste of pollutants and resources brought by production machines and transportation tools through scientific and technological means, and reduce energy consumption. At the same time, new energy development can be carried out to provide continuous clean energy for the free trade port area, improve the green ecological level of the port area, and realize the sustainable development of the free trade port.
6.4. Accelerate the Transformation and Upgrading of Service Trade
Throughout the development of China’s free trade port trade, China’s service industry deficit phenomenon is more serious and lasted for 20 years, in the face of this phenomenon, China also puts forward to speed up the transformation and upgrading of service trade, enhance the opening of the service industry, explore suitable for China’s characteristic development mode, accelerate the innovation of service industry, build “China free trade port service” competitive advantage, enhance the value of free trade port location. In this regard, the transformation and upgrading of the service industry can be carried out from the following aspects:
First of all, financial services are an important part of the service industry. At this stage, according to the international environment and domestic development, we should expand the opening of financial services, improve the market access system of service trade, further relax trade restrictions, and take corresponding measures to reduce the barriers to trade in services suffered by foreign exports, to improve the opening and transformation and upgrading of financial services.
Secondly, the customs supervision system and mode of China’s free trade port are reformed to improve the customs clearance convenience of service trade commodities, enhance the transformation and upgrading of electronic cross-border transactions, and integrate with international standards. Strengthening the integrated development of the service industry and manufacturing industry to achieve good interaction between them, such as the manufacturing industry providing technical support and financial support in the field of financial service opening, helping the financial industry to better achieve opening, thereby reducing the financing cost of the manufacturing industry itself and improving the product R & D innovation ability of the manufacturing industry, can establish a shared information platform between them, timely access to correct and effective information, and improve the efficiency of the financial industry and manufacturing industry.
6.5. Rational Allocation of Industrial Land Resources
The construction of free trade port depends on good natural resources, and the land resources in natural resources are limited. How to rationally allocate land resources so that the related industries of free trade ports can play the greatest role is a major direction of value mining. In this regard, the implementation of a differentiated industrial project land use model is a very good method.
First of all, according to the different requirements of land resources needed by various industries, combined with the actual situation of the hinterland of the port, the rational planning, and layout of industrial space, to achieve a high utilization rate of land resources.
Secondly, improve a series of land use management systems and supervision systems, optimize the maintenance of land quality, and reduce industrial pollution caused by land pollution. At the same time, it encourages the transformation and upgrading of existing industries, including taking specific measures to promote land use change, allow land integration and development, and encourage land composite utilization. Due to the needs of industrial development, land use construction can be changed according to the law within a certain range. Support rational development and utilization of underground space to deal with the shortage of land resources.
7. Empirical Analysis of Ningbo Zhoushan Port Location Value
7.1. Development Status of Zhoushan Port
Ningbo Zhoushan Port is one of the most economically developed and active regions in China, and it is the best-developed port in Zhejiang at present. With its unique geographical advantages and port resources, it has become the first “billion tons” port in 2017. The data are shown in Table 1, and the global port cargo throughput ranking is “consecutive” in 2018.
Ningbo Zhoushan Port is located in the eastern part of Zhejiang Province, back to the vast economic hinterland of the Yangtze River Delta. It is located at the intersection of the gold coastline in eastern China and the gold waterway of the Yangtze River. After years of development and construction, Zhoushan Port has formed eleven port areas such as Dinghai, Shenjiamen, and so on, shown in Figure 1, the characteristics of S-type geographical distribution. The port infrastructure construction is perfect, and there are multiple channels with different water depths, which is conducive to the free navigation of various sizes of ships. It is worth mentioning that Zhoushan port is one of the starting ports of the Maritime Silk Road. At present, Zhoushan Port has set up trade channels with more than 600 ports and opened up 246 routes, becoming the hub of international trade1.
![]()
Figure 1. Overall distribution map of Ningbo Zhoushan Port.
![]()
Table 1. Data of cargo throughput of Ningbo Zhoushan Port in recent years.
Data source: National Bureau of Statistics of the People’s s Republic of China.
7.2. Analysis of the Connotation of Zhoushan Port Location Value
Ningbo Zhoushan Port is a deep-water port with water as its main function. The water area of the port area is open, and the water depth can withstand the navigation of large container ships in berth. As there are continents and islands as natural barriers, the sea surface is flat and low and is rarely affected by climate disasters, so it has become a natural wind haven. The superior natural conditions of the port area make Zhoushan port can operate almost every day, rarely because of natural factors 365 days to stop operation, is the ideal port site for the construction of a large modern deep water port in China.
With the rapid development of the Zhejiang economy, the development of Ningbo Zhoushan port is becoming more and more prosperous, and the transportation of foreign trade goods in the port has increased greatly, thus increasing the throughput of port goods. Over the years of construction and development, Zhoushan Port has become the pillar of ports in Zhejiang Province, and it is the only port in the Yangtze River Delta that has ocean routes except for Shanghai Port.
The prosperity and development of Zhoushan Port not only depend on excellent natural conditions, but is also closely related to national policies, the economic environment, and its economic hinterland. With the strong support of the state and the government, in 2016, Ningbo Zhoushan Port to “expand the market, internal management” to benefit. First, we should continue to promote the substantive integration of Ningbo Zhoushan Port, and further release the policy dividend brought by integration. In 2016, the port area also promoted the construction of smart ports and boldly used the “Internet+” platform to improve the science and technology of port service and improve the efficiency of port service.
In addition, Ningbo, Hangzhou has been the economic core area of Zhejiang Province, foreign trade economic strength. Due to its special geographical location, Zhoushan is adjacent to Ningbo and close to Hangzhou. Ningbo and Hangzhou are the main direct economic hinterlands of Zhoushan Port. The quality and speed of economic development of the two cities have promoted the development of Zhoushan Port and improved the value of the port.
To sum up, the location value connotation of Zhoushan port has a good value connotation whether in natural factors, economic factors, or social factors.
7.3. Composition of Zhoushan Port Location Value
7.3.1. Economic Development
First of all, the high economic level of the city and the perfect economic system are the prerequisites for the development of port shipping. Urban economy and port economy complement and influence each other. Zhoushan Port under the larger economic hinterland and a higher level of urban development, from its creation to now, it can be said that the situation is getting better and better. Ningbo, as a city with a relatively developed economic level in Zhejiang Province, takes port trade as the main developed industry of the city, and it is very close to Hangzhou. It can contact many trade exchanges and bring many economic benefits to Zhoushan Port. In addition, the geographical location of Zhoushan Port in Ningbo is unique and close to Shanghai Port. It can be said that the initial development of Zhoushan Port cannot be separated from the help of Shanghai Port. However, with the development of the port, the level of Zhoushan Port and Shanghai Port is getting closer and closer. Slowly, Shanghai Port will pose a competitive threat to Zhoushan Port. There is both a cooperative relationship and a competitive relationship between the two. Therefore, Zhoushan Port should aim at the problems, avoid the unfavorable factors brought by the external factors, expand the positive external factors, enhance the ability in port resources, commodity trade, and warehousing, and learn from talents, science and technology, and other aspects in the weak, believing that it will develop faster and better.
Secondly, Zhoushan Port is close to the surrounding seaport cities and countries. For example, it only needs 1 - 3 days to voyage with Hong Kong, Taiwan, Japan, South Korea, and other Asian cities and countries. It is also short of some ports in Europe, let alone from China trading ports such as Shenzhen and Shanghai, and transportation is very convenient. The voyage to Southeast Asian countries is generally about a week, and the voyage to European countries is controlled for about a month, which has great advantages for port intermodal transportation. Coupled with the development of the Belt and Road Initiative, Zhoushan Port is the key layout point of the Belt and Road Initiative and is the spatial link between the Silk Road Economic Belt and the 21st Century Maritime Silk Road, which creates opportunities and provides the impetus for the economic development of Zhoushan Port.
7.3.2. Cultural Background
Zhoushan’s free trade culture has always been strong. Throughout history, Zhoushan has been engaged in water production activities for thousands of years, accumulating a strong international business culture. In addition, the development of the Maritime Silk Road and the unique geographical location and historical and cultural heritage of Zhoushan Port has brought new opportunities for the cultural development of Zhoushan Port.
In the environment of opening to the outside world, the opening of culture is one of them. The port not only spreads the traditional Chinese culture and the unique culture of Zhoushan port but also absorbs the excellent culture of foreign countries to enrich itself. In addition, in the domestic and even in the city, Zhoushan Free Trade Port also carries out various activities to carry out cultural construction, such as Beilun Port Museum in the city. It is not only to enrich the cultural life of the people of the port city, and let more people understand the free trade port but also to enhance the cultural strength of the port itself.
7.3.3. Service Industry Development
Zhoushan port is currently rich in services, and a variety of related services industries have formed a more complete system. In recent years, with the acceleration of port development and construction, the port service industry has achieved coordinated development, and the ability of ship berthing service has been significantly enhanced. At present, the city has 7 pilot bases, 14 pilot boats, 6 tug companies, and 64 large and small tugs, and the external conditions of the port are good2.
However, compared with the well-known foreign ports, Zhoushan Port in Ningbo is characterized by a large proportion of traditional services, mainly in traditional ways such as cargo handling, stockpiling and transportation, and less high value-added services such as processing and trade, and knowledge and technology-intensive services. There is still much room for development in high-end businesses such as international procurement and supply chain management. Shipping finance and insurance are not mature enough and need to be improved. The overall added value is not high and there is great development potential.
In addition, the development of the modern port service industry must rely on enterprises as the main body of the market to be promoted, and Ningbo Zhoushan’s overall small-scale enterprises, weak strength, customs declaration, logistics, and another small number of enterprises, unable to achieve large-scale management, while the lack of independent operating capacity and innovation ability, must rely on government support in terms of funds and policies for a long time. Therefore, efforts are also needed in this regard to increase investment and financing of ports and waterways and the “Belt and Road” opening-up strategy, and to adopt various preferential measures to attract foreign investors to establish more foreign-funded enterprises in ports, boost the internationalization of the RMB and attract more enterprises to settle in Zhoushan. In the development of the logistics industry, it is necessary to strengthen the protection from policies and regulations, and continuously develop the innovation of logistics services. Relying on the development advantages of the port-vicinity industry, it provides the corresponding market space for the high-end service industries such as the shipping finance industry of Ningbo Zhoushan Port.
7.3.4. Information Technology
More and more attention has been paid to intelligent ports, which has become the development goal of ports. Ningbo Zhoushan Port is no exception, accelerating scientific and technological innovation and actively promoting port transformation.
Port technicians independently developed the bulk terminal production process management system. The system extracts and analyzes all kinds of core production data through the data-sending end installed on the ship unloader, accurately predicts the production progress, helps managers to adjust the operation plan in time, and improve production efficiency. At the same time, the system forms a comprehensive and multi-angle video monitoring network by installing high-definition cameras on important working parts of each production machinery and realizes the visual management of the wharf production process.
In addition, the port intelligent tally system has also completely changed the traditional tally operation mode. Through multiple high-definition cameras to capture the relevant information of each container on the dock, and with the intelligent recognition system to realize automatic identification and automatic input, the intelligent tally system not only improves the accuracy of tallying, but makes “one person multi-channel tallying” becomes reality, but also lets the tallyman enter the indoor from the outdoor, effectively reduces the safety risk of operation.
Recently, Zhoushan port has taken a big step forward in the field of science and technology: becoming the first port to apply a 5G network to port operation, which is undoubtedly great progress in the process of the intelligent port. With the support of the 5G industry alliance in Zhejiang Province, 5G network technology fully exerts its advantages of the port, realizes the application of the 5G network in wheeled gantry crane operation, and realizes the transformation of the traditional port to unmanned intelligent port. The advantages of a 5G communication system, such as ultra-large bandwidth, ultra-low delay, and ultra-multiple links, provide safe and reliable wireless communication services for multi-channel high-definition video backhaul, container tracking and automatic driving, lay a solid foundation for port automation operation, reduce operation and maintenance costs, and bring great convenience to port operations. In the future, Zhoushan Port will continue to break through in this regard and achieve higher automation and intelligence level of the port.
7.4. Location Value Characteristics of Zhoushan Port
7.4.1. Innovation
An important measure for the smooth development of Ningbo Zhoushan Port integration is to rely on innovation. It is because of innovation and development that Zhoushan port today is the first “1 billion tons” port serving national strategies such as the Belt and Road Initiative and the Yangtze River Economic Belt. The highlight of the integrated development of Ningbo Zhoushan Port is the innovation of institutional mechanisms, which not only highlights the leading role of the government but also uses the market operation mechanism to effectively integrate the port resources of Ningbo Port and Zhoushan Port. Zhoushan maritime department has implemented relevant measures in terms of innovation: innovating the management mechanism of port opening, focusing on strengthening the monitoring and analysis of port operation, and providing data support for a series of subsequent improvement measures. Before the integration, Zhoushan port is a long-term monopoly operation, its single public ownership system leads to a single form of investment and financing channels. To promote the integration of development must change the old system, not simply a market-oriented operation mechanism, the need for provincial government “top-down” integration, guidance, and overall arrangement, for some specific port project development, port infrastructure construction, and the establishment of information platform, adhere to market-oriented operation, market-oriented economic interest adjustment mechanism and operation management system, realize the integration of port operation and management. In terms of human resource allocation, innovation has also been enhanced. The port staff should increase their inclination to the front line of law enforcement, rationally allocate their jobs, and then improve the working ability and quality of the overall staff through the training system.
7.4.2. Sustainable Development
Sustainable development is the most basic and important feature for the long-term development of ports. Ningbo Zhoushan Port also attaches great importance to the sustainable development of ports.
Due to the frequent development of Zhoushan Port, the pressure on Zhoushan’s natural environment has been aggravated. The degree of pollution in the sea area has become increasingly serious, and the situation of marine fishing has only increased. In addition, excessive reclamation and development have increased the land area, resulting in the deterioration of the ecological environment of Zhoushan Port.
Zhoushan Port has also carried out prevention and control: through the planning of shoreline resources, the resources are fully utilized as far as possible. Green production and transportation are advocated and required in daily port operations. The concept of the green port is transmitted to various departments and corners and strictly implemented to reduce garbage pollution and waste of raw materials. Furthermore, through the maintenance and management of the sea environment, the cleanliness of the sea surface and the clarity of the seawater are ensured, so that the ship can sail freely and safely, and at the same time, foreign pollutants are organized to enter the port. Fishing in the sea area is also regulated, and the fishing period is appropriately increased to protect the marine ecology. Finally, it is necessary to improve the basic quality of the staff in the port area, so that everyone can realize the importance of sustainable development thinking, and start from everyone to jointly protecting the port environment.
Given the sustainable development of the port, Zhoushan port needs to invest time and energy in the rational allocation of land resources, as far as possible to optimize the allocation of existing land resources, rather than through excessive reclamation to increase land area.
7.4.3. Openness
In this era of internationalization, port trade is not only limited to domestic trade but also to open the international market. Therefore, the openness of port areas is extremely important, and openness also includes many aspects: the openness of technology, culture, finance, and system. Given the current situation of Zhoushan port opening, the Zhoushan government promotes the opening of port infrastructure on the existing basis and lays the foundation for the opening of Zhoushan port by actively checking the construction and transformation of port facilities, developing strengths and avoiding weaknesses, and improving infrastructure construction. In the financial opening up, gradually relax restrictions on foreign financial policies, and actively promote investment promotion, to create an international port status. In the process of financial innovation and opening up, first of all, to ensure the financial risk is in the controllable range, to ensure the safety of the financial, and then to encourage the implementation of financial opening up, financial freedom, according to the existing financial system of free trade port, targeted to develop preferential tax policies, promote the convenience of investment and trade, promote the internationalization of RMB, at the same time can learn from some successful international free trade port, such as Singapore Port opening policy, combined with their situation, to improve and perfect, has a set of belongs to their own, suitable for their opening policy, promote the free trade port to the international.
7.4.4. Network Technology
At present, based on improving the level of science and technology, Zhoushan Port has also made great progress in the construction of the network platform of the port area. In addition to the existing national public transport logistics information platform, Zhoushan Port also has its own scientific and technological innovation. The establishment of the port area information platform and the improvement of the Internet level can provide electronic payments, online orders, and other services. It also applies the satellite positioning function, navigation function, and other technologies, which provide convenience for the dynamic query service of ships and strengthen the wisdom of the port.
Zhoushan Port Co., Ltd. has put into use the “centralized platform for safety production video surveillance”. In the future, it is also planned to connect the foreign fishing oil terminals belonging to the newly commissioned company and set aside system interfaces for other new projects of the company. The online system is of great significance to the safe production of the Zhoushan port area. The centralized monitoring and video storage functions provided by the system improve the safety management efficiency of the level, and also play a real-time supervision role in the safe operation of the production line. In the future, there will be many Internet platforms that have been studied for problems in port operations, contributing to the improvement of the value of free trade ports.
8. Conclusion
With the accelerated development of global trade in goods, services, and technology, economic globalization has promoted international trade, accelerated the development of international trade, and promoted global trade liberalization. As the main way of international trade in goods, it is increasingly important to develop and tap the location value of free trade ports.
This paper puts forward the concept of free trade port location value, through analysis, this paper defines the free trade port location value as the economic value realization formed by the natural factors, economic factors, and social factors of the location, a comprehensive value system, with a system balance and the concept of overall benefit tolerance. At the same time, this paper also studies and analyzes the basic composition of location value from the aspects of economy, politics, science, and technology. Therefore, the basic characteristics of location value are summarized, including openness, innovation, sustainable development, and so on. Then, combined with the current development status of Ningbo Zhoushan Port, we will study the location value of Zhoushan Port in a targeted manner. Finally, based on the above theoretical analysis and practical port analysis, several suggestions are put forward for tapping the location value of the free trade port: expand new shipping business, attach importance to environmental protection, adhere to the sustainable development strategy of the free trade port, adhere to the transformation and upgrading of free trade port services, and build a free trade port with high service efficiency, good environmental quality, and perfect supporting service level.
9. Contribution and Innovation of Paper
This paper focuses on combing and summarizing the literature status and characteristics of foreign free trade ports, giving the connotation and characteristics of free trade ports, distilling the experience and enlightenment of Ningbo Zhoushan Port free trade port construction, and putting forward countermeasures and suggestions conducive to the high-quality development of China’s free trade ports. Economic and economic support, political system, industrial development, cultural heritage, innovation, and scientific and technological level are the basic components of location value, and the location value of free trade port has the characteristics of openness, innovation, sustainability, boundary, and dependence.
Acknowledgements
The research of this paper is supported by the University Major Research Program of Humanities and Social Sciences of Zhejiang Province (No. 2018QN060).
NOTES
1http://www.gov.cn/xinwen/2019-02/17/content_5366307.htm.
2https://baike.baidu.com/item/%E8%88%9F%E5%B1%B1%E6%B8%AF/5266239?fr=aladdin.