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China South City project brings ASEAN benefits

Updated: 2011-07-12 07:10

By Hao Nan, Huang Zhaohua, and Huang Feifei (China Daily)

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 China South City project brings ASEAN benefits

Artist's rendering of China South City Nanning - a large trade and logistics project that is expected to bring prosperity to Nanning and increase cooperation between Guangxi and ASEAN countries.

China South City project brings ASEAN benefits

Nanning, the capital of the Guangxi Zhuang autonomous region has plans for a large trade and logistic project to bring prosperity and to increase cooperation with ASEAN countries, with help from the local government.

Additional support for the China South City Nanning (CSC Nanning) project is coming from the China Council for the Promotion of International Trade and the China Chamber of International Commerce.

That is partly because Nanning is growing in popularity, thanks to the China-ASEAN Expo (CAEXPO) and investment promotion activities.

The city itself has become one of the nation's "Top 10 exhibition city brands" and its exhibition business has become a moneymaker thanks to its capacity and efficiency.

In 2004, it became the permanent host of the CAEXPO and the China-ASEAN Business and Investment Summit, and, "It is an ideal place to build the China-ASEAN Trade and Logistics Center, thanks to its huge business potential," according to Cheng Chung Hing, co-chairman of China South City Holdings Ltd.

Advantageous location

One other reason for their interest and investment, Cheng said, is the city's particular geographic position.

The region borders Vietnam and is within easy reach of Burma, Laos, Cambodia, Thailand and other Southeast Asian Nations and has convenient airports, railways, port facilities and highways.

And, CSC Nanning, as a major investment project, can be significant for the region's development.

It is expected to help an integrated group of logistic services, in trading, exhibitions, information sharing, and warehousing.

It has also reached agreements with the economic development offices of six AESAN countries - Burma, Laos, Vietnam, Brunei, Cambodia, Indonesia, and Singapore.

"CSC Nanning will lower product procurement costs and logistic costs and make procurement more efficient and profits greater for the city's enterprises," a local government official has said.

In addition, there is the China-ASEAN Free Trade Area, and nearly 90 percent of products will have zero tariffs in China-ASEAN trade. CSC Nanning is expected to provide a first-class investment and trade environment, he added.

"It will bring in new management concepts for Nanning and Guangxi's manufacturers and provide an exchange platform for industrial materials and products."

More companies and jobs

CSC Nanning is located in the city's Jiangnan district with a site area of about 2.3 square kilometers, with a gross floor area of about 4.88 million square meters.

It will have 10 industrial-materials trade centers for various types of manufacturing and a series of supporting services.

It will cost more than 12 billion yuan ($1.86 billion), and be built in two phases. Work on the 1.6 million- sq-m phase one began in Oct 2009, with an initial cost of about 6 billion yuan, and a completion date of two to three years.

The construction of its logistics squares, exhibition centers, infrastructure, and other supporting facilities is going smoothly.

The number two and number three logistics squares will put into service in October, while the number four square for exhibiting goods from the ASEAN countries is expected to complete construction in October and start operation early next year.

China-ASEAN Business and Investment Summit's secretariat and CSC will work together for business development.

When it is completed, China South City Nanning is expected to bring in more than 100,000 Chinese and foreign companies, and provide jobs for 200,000 to 250,000 people.

Annual trade volume of these companies has been estimated at 100 billion yuan.

The project overall includes a 50,000-sq-m trade and exhibition center for ASEAN goods and trade and business services for displaying and marketing ASEAN products.

CSC Nanning will provide a series of preferential policies to the AESAN members, such as a five-year rent abatement period, to assist ASEAN economies and promote economic development and regional integration.

The CSC Nanning's Trade and Exhibition Center for AESAN Goods is expected to give markets a real boost, with exhibitions planned monthly to make the city an enduring exhibition showcase, according to government officials.

(China Daily 07/12/2011 page6)

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