CEO of SHIPPINGCHINA, Mr. Kang Shuchun is giving the annual report to Shipping Mart members

Good afternoon all dear Shipping Mart members, welcome to annual Shipping Mart conference. Every year, I always have a complicated feeling when all Shipping Mart gather together. Shipping Mart as the core service of SHIPPINGCHINA, I believe in its bright future, and I am sure it can bring all of us fortune. However, we still have many problems or difficulties to overcome. I wish all our Shipping Mart members should stick together with us, and find the best solution to solve the current problems, and achieve our final objective in the shortest time.

Every business should have short-term, middle-term and long-term business objectives. The short-term objective is ‘Survival’. We need to make our business live on to create future profit. And Shipping Mart is middle-term or long-term business objective. It may not have too much profit now, but it will have good financial return for all Shipping Mart members. All these years, we SHIPPINGCHINA have devoted much energy and financial resource.

Every business always needs to prepare for difficulties or potential problems. It is because you will not see it is coming in a good time, but when it comes, you may be destroyed by remarkable problems. Presently, the market is in a recovering stage, and the market condition is still not stable. Under this special period, what should be become our premier thought? It is to protect ourselves, avoid risks and develop steadily. We can say Shipping Mart is a great method for all of us to escape from current unstable situation and financial crisis. It requires all our common efforts. I am very moved by all supports from our Shipping Mart member for all these years.

Under the current financial crisis, Shipping Mart much find its right position. Where is the market for Shipping Mart? What is Shipping Mart’s business model? Where should Shipping Mart receive its profit? Should the market be in China or overseas countries? We have made a deep consideration on all these questions. Next, I will briefly introduce what activities we have taken for Shipping Mart.

This year, SHIPPINGCHINA has design a new idea, which is called ‘Virtual Dry Port’. By combining the concept of ‘Virtual dry Port and Shipping Mart it will actually become modern comprehensive logistics online system for China market. How to create this platform, and where should we start? We have decided to start in Port sector. We will use online system to connect dry port to sea port, and provide various port services in dry port region to reduce the time and cost for all complicated procedures. And the logistics service from dry port regions to sea port regions will be proved by Shipping Mart members. As a result, Shipping Mart is the start of Shipping Mart development next year. Once the project of ‘Virtual Dry Port’ opens, Shipping Mart will open the market to inner land market.

Currently, we have achieve cooperative intentions with Xi’an Port. In the sense of Technology, we have achieved cooperative intentions with the vice president of Shanghai Port, Mr. Bao Qifan. These cooperations will provide us great support for getting government grant in China. And we have already handed the proposal to state government, and has received initial confirmation and support from China government.

Every year, SHIPPINGCHINA has spent lots of money in Shipping Mart promotion. In the first half year, I have leaded a working team to organize Shipping Mart forum in Guangzhou, Shenzhen, Shanghai, Ningbo, Xiamen and Qingdao. We have invited regional outstanding logistics companies, and promoted the idea of Shipping Mart and new B2B E-business model in all these markets. During these regional Shipping Mart forums, we have received a lot. Many logistics companies have a deeper understanding on Shipping Mart’s background, principles, and benefits. Meanwhile, there are lots of companies have joined into Shipping Mart.

In order to further develop Shipping Mart in overseas market, I and Mrs. Judy Lau has visited important seaport cities in Spain, Germany, Netherlands, Belgium and France. Meanwhile, we have registered our first overseas office in Spain. The model of Shipping Mart has received remarkable attentions from European shipping industry. Under the current financial crisis, Shipping Mart will become the new force to push business increase and stimulate the foundation of ‘Sino-EU Business Bridge’. It creates great result to lower logistics cost, increase trading relationship between EU and China, and turn crisis into opportunity.

Shipping Mart has experienced five year’s development fro the very start. So far, Shipping Mart has already had 150 members covering 30 port cities in China. It has achieved annual cargo volume of 2 million TEU. We plan to develop it to cover 60 port cities in China and other countries by 2010. Its members will achieve 300 with an annual cargo volume of 4 million TEU. Let us work together for a bright future for Shipping Mart. Thanks very much.