DP World has signed a Memorandum of Understanding (MoU) with Shanghai Lin-Gang Economic Development Group (Lin-Gang Group) to expand its operations in China and strengthen logistics and trade development at the Lin-Gang Special Area, a free trade zone in Shanghai.
Lin-Gang Party Secretary and member of Shanghai Standing Committee, Jinshan Chen, DP World chairman and CEO, Sultan Ahmed Bin Sulayem, and CEO & managing director of DP World UAE & Jafza, Abdulla Bin Damithan, inked the agreement today (2 November) at a virtual ceremony.
DP World is expected to work with the Lin-Gang Group and deploy the World Logistics Passport (WLP) programme, a global and private sector-led initiative designed to ease the flow of global trade, unlock market access through the creation of new trade routes and provides economic efficiencies to members.
DP World said in an announcement that WLP will provide Chinese businesses with faster and more cost-efficient access to markets in Asia, Latin America, the Middle East and across Africa.
Additionally, DP World will share its experience from Jafza, its flagship freezone in the UAE. Combined with the Jebel Ali Port, Jafza forms an integrated ecosystem for over 9,000 companies from around the world, serving more than 3.5 billion people globally by connecting directly to 150 ports and more than 180 shipping lanes.
There are currently more than 40,000 corporations registered in Lin-Gang, including Tesla which operates a Model 3 factory, China International Maritime Containers (CIMC), China State Shipbuilding Corporation (CSSC), Caterpillar, and Commercial Aircraft Corporation of China (COMAC). The position of the Lingang Special Area in southeast Shanghai makes it an important node for Shanghai’s coastal thoroughfare with access to waterways, air routes, railways, highways, inland rivers and the subway.
Jinshan Chen said, “Our partnership with DP World could help Lingang to build an open Special Zone, and accelerate the establishment of a new development platform to create channel & gate for Chinese enterprises to develop business in Middle East, Indian subcontinent, and Red Sea region.”
As part of the agreement, Lin-gang will invite enterprises in the Yangtze River Delta to jointly promote the WLP, according to a statement.
The inclusion of China in the WLP is expected to strengthen the programme’s position across Asia with Hubs in India, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam, according to DP World.
“Extending the WLP into China by partnering with Lin-Gang special area is a huge development and a testament to the strength of the programme. Efficient supply chains make products and services more competitive and selling to more markets increases economic resilience,” commented Sultan Ahmed Bin Sulayem.
