Download Management & Engineering Yingkou Under the Background of "Two National Strategies"

Management & Engineering 12 (2013) 1838-5745
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Management & Engineering
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Research on Development of Interaction Between Port and City in
Yingkou Under the Background of "Two National Strategies"
Ying QI 
Yingkou Institute of Technology, Liaoning 115000, P.R.China
KEYWORDS
ABSTRACT
Interaction between port and city,
Port economy,
National strategy,
Port industries
The formulation of two national development strategies, "Liaoning Province Coastal
Economic Belt" and "Shenyang Economic Zone", has consolidated Yingkou’s important
strategic position. This paper aims at the developing status of the interaction between port
and city and further developing measures in Yingkou under the above background. Starting
from the basic theory of relationship between ports and cities, it focuses on analysis of the
interaction between port and city and makes comments, which shows that the power port
pulling city is much larger than the power city pushing port in Yingkou. Based on the
imbalance of two powers, the further recommendations for promoting favorably interactive
development between port and city in Yingkou are brought out from the aspects including
strengthening functions of the government, seizing developing opportunities, coordinating
relationship between port and city, expanding the port industries, creating a good cultural
environment, developing port logistics industry, strengthening the construction of financial
system.
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1 Introduction
In July 2009 and April 2010, "the Coastal Economic Belt in Liaoning Province" and "Shenyang Economic Zone" were adopted by
the State Council and the National Development and Reform Commission. In one year, two regional development turned into the
country strategy in Liaoning province, which is a rare historic opportunity. Yingkou City is a main city and located in the middle of
the Coastal Economic Belt in Liaoning Province. Meanwhile, it has a unique access to the sea of Shenyang Economic Zone and is the
tenth-largest port of the country, servicing directly for the city cluster where Shenyang lies in the center. Yingkou is the only overlap
in the important supporting regions of two country strategies. The establishment of two strategies brought developing opportunities
for Yingkou. Therefore, it is necessary to study the present situation of interaction between Yingkou port and city and how to carry
out a better development strategy on the basis of the said background.
In recent years, some academics have made studies on the relationship between port and city. Chen hang (2009) conducted a
quantitative analysis on the relationship between ports and cities, with the logistic equation, established an evolutionary model of the
port city, providing theoretical basis for guiding the development of interaction between port and city. Li Ran (2011) adopted SWOT

Corresponding author.
E-mail address: [email protected]
English edition copyright © ST. PLUM-BLOSSOM PRESS PTY LTD
DOI:10.5503/J.ME.2013.12.007
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assessment method and analyzed the interactive development of Tianjin Port and Tianjin City, established a strategic element
evaluation model on port-city development of Tianjin, and on this basis of which to propose its development strategy. Liu Yang, Lu
Minghua (2010) had empirical study on the development of the port and city in Yingkou, Liaoning province, thinking the impact of
Yingkou Port on economic technology development zone was lying in the intermediate stage. Ding Wei, Cheng Yongjun (2009),
taking Yingkou port as an example, analyzed leading role of a port in the development of regional economic integration in Liaoning
province. The above researches provide a theoretical basis and serve as good references for this paper.
2 Mechanism on Relations Between Port and City
"The port construction boosts the city; the port development takes advantage of the city; the city prosperity relies on the port; the port
and the city grow together and enjoy mutual prosperity and declining", which on one hand it reveals changing process of the
relationship between port and city, on the other hand it reflects the market mechanisms of interaction between port and city. This
interactive relationship between ports and cities is essential for the development of ports and cities. The port development leads the
development of city, in turn, the prosperity of city also contributes to port’s prosperity. The port and city complement and reinforce
each other.
3 Analysis on Development Present Situation of Interaction Between Port and
City in Yingkou
3.1 Yingkou port promoted the development of city
3.1.1 Port is the economic driving force for development of Yingkou city
First, Yingkou port provides a platform of handling, transport, storing, packaging and assembling for industry and commerce.
Through the traffic network of sea and land, the port absorbs and gathers various production elements within the world, participating
directly international division and international trade. The throughput of port brings directly economic income. Figure 1 shows the
throughput of Yingkou port and GDP of Yingkou for the latest ten years, from which we can see that the economic power of Yingkou
has quickly upgraded as port throughput volume increased. If analysis of specific correlation is made, a coefficient can be up to 0.998,
which is clear that rapid development of the port was the direct impetus for economic development of Yingkou city. In addition,
Yingkou port with convenient traffic location, large-scale collecting and distribution function has expanded the market, promoted the
realization of scale economies for transport and accumulation efficiency. The enterprises, industries gathered the port and caused a
series of ripple effects for the urban economy to lead to rapid expanding of the urban economy. Yingkou port promoted the
development of various industries of Yingkou, improved the city's gross domestic product.
Figure 1 Port throughput and gross domestic product of Yingkou in 2002-2011
Data resource: Yingkou statistical office
3.1.2 Port promoted agglomeration of port industries and optimization of industrial structure
The ports not only create the national income, employment opportunities and tax revenues, but also have a strong association with
other sectors. A series of independent companies engaged in services related with port gathered in the same port area to obtain joint
competitive advantages comparing with the outside of the cluster, which promotes the development and growth of local industry,
makes Yingkou's economy diverse and adapt to changing foreign markets more favorably, contributes to rapid economic growth and
industrial development in Yingkou. At the same time, as a combination of goods transport between land and sea, the port has been an
important power of resource allocation and industrial structure adjustment in Yingkou. Many heavy industries and export-oriented
industries selected a port city as an investment region on the basis of driving of cost and policy. Meanwhile, port construction and
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development of port industry bring along the development of the tertiary industry and increase its proportion in industrial structure,
which promotes the optimization and upgrading of industrial structure in Yingkou.
3.1.3 Yingkou port accelerated expansion of urban scale and improvement of city image
Yingkou port is the nearest access to the sea for Shenyang economic zone, which confirm its excellent location. The enterprises take
advantage of convenient logistics and low-cost transport facilitation of Yingkou Port to reduce obviously product costs and be
beneficial to their development. Therefore, Yingkou Port promoted industrial development in this region and accelerated the process
of urbanization. Lasting building and healthy development of the port will make a quality chain form and supply more employment
opportunities, which promote the expansion of industry and growth of population. It is certain that the scale of Yingkou City will
expand constantly. The long-term development of the port has a positive impact on urban environment and image, initiates the
characteristic social culture and creates a unique urban humanism environment that is inextricably linked with port location.
3.1.4 Yingkou port provided morel employment opportunities
Rapid development of Yingkou Port spurred the development of construction industry, manufacturing industry, high-tech industry
and the service sector, which provided more jobs. Based on the experience of Hong Kong, the ratio of direct jobs and indirect jobs
provided by port and port-related industry is 1:72.3. If one container berth is added, 27600 jobs are available. According to statistics,
23% employment population is associated with local shipping. Although there is no relevant statistical data in Yingkou, the
employment proportion also has comparability. Besides, employment opportunities provided by the port, enterprises and agencies of
port-related industry, trade, transport, tourism, warehousing and services can also make a substantial increase in the number of
employment.
3.1.5 The advantages of the port led the development of the coastal industries
Advantageous geographical location with a variety of function of port has a strong attraction and unifying role for all kinds of
elements. The collecting and distributing functions of ports with a wide range and large-scale expand greatly the market, promote the
implementation of social division, comparative advantage, scale economy and gathering efficiency, which gives Yingkou's
development a very advantageous status from both demand and supply. Location advantages have led the development of Yingkou
coastal industries. Yingkou has established six leading industries including metallurgy, equipment manufacturing, Petro-chemistry,
magnesia materials, new building materials, textiles and garments, and formed a high-tech industrial belt which has a high scientific
and technological content and strong radiation roles.
3.2 Yingkou created the conditions for the development of port
3.2.1 Yingkou City had a supporting effect on the port development
The ports must rely on software and hardware environment provided by the port city. The more economically developed, the cities
have the more frequent foreign economic ties, which leads to a larger demand for port transport, thus promotes the expansion of ports
and structure evolution. Yingkou has the necessary human resources required by port operations and development and provides land
for the development of the port and shipping industry. Yingkou is the most direct economic hinterland of the port. The development
of urban industrial economy and improvement of industrial competitiveness brings about the increase of port cargo throughput and
changing of goods types. Yingkou economic development contributes to the increase of port throughput. Meanwhile, the
development of modern service industry in Yingkou creates a good software environment for port forwarding and trade, which plays
an important role in raising the competitiveness of the port.
3.2.2 The development of Yingkou affected enhancement of the port
The city scale affects the port size. A city with a larger scale and developed economy has stronger goods sources, logistics services
and support ability. Therefore, port development potential is larger. The city supplies developing space for the port. Therefore, the
port planning must take into account the coordination logistics, industry and urban layout. The economic development of Yingkou
has a significant impact on functions strategy, services scope, production features and the status of the port. Relying on Yingkou,
Yingkou Port has changed the single transport logistics into the integration of complex functions which involves transport function,
the logistics industry, port industries and modern services and formed gradually marine-oriented integrated flow hub and marine
economic base dominated by information and ecology. From basic industries to multi-function industries, Yingkou Port has given all
aspects of radiation to socio-economic system to improve effectively the competitiveness of the local industry.
3.2.3 Yingkou supplied policy support for port development
The external links of Yingkou Port are inseparable from the organization, coordination and service of Yingkou government.
Realization of these functions is supported by the policy. The port management functions from Yingkou government is reflected
through the formulating of policies, such as the establishment of port developing plan, positioning of port layout and port function,
improving various forms, transportation systems and economic complementarity, strengthening the economy links of port and
hinterland, expanding radiation range of the port, implementing more open economic policies, and so on. In these ways, the port's
competitiveness is enhanced.
3.2.4 Yingkou provided integrated logistics activities space for the port and shipping industry
Yingkou City provides a logistics platform for the port and shipping industry, by which inland logistics is formed. Port logistics
function is positioned in a whole supply chain, taking the port as a link, attracting port-related logistics industry and services of the
upstream and downstream, taking the advantage of resources and scale, operating as a whole, strengthening the convergence and
coordination of logistics links, Yingkou provides the space for port logistics and becomes the channel of transport connecting both
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land and outside. Port accesses to the flow of people, goods and information and obtains a better contact with the outside world, so as
to realize the comprehensive logistics.
3.3 Evaluation on interaction between port and city in Yingkou
In General, the Yingkou port has played a strong role in boosting Yingkou economic development. However, Yingkou City has
played a relatively weak role in pushing the port economy. The above evaluation is mainly reflected as follows:
3.3.1 The development of Yingkou City lagged port development, with small economy volume and city size
Through substantial input in the latest 10 years of high intensity inputs, Yingkou port has built a number of large, deep, specialized
port infrastructures, and already has a strong maritime power. Compared to port construction and development, the industrial
development inYingkou City is at the initial stage, with weak radiative power of the leading enterprise. Compared to other coastal
areas, the development of industries is lagging and less competitive. The share of local goods in the port throughput has no advantage,
which has not played the leading role to the local economy. In addition, the city size and economy volume are all small. Table 1 lists
the comparisons in population, area and GDP for two consecutive years between Dalian and Yingkou. The table shows that the
population and area in Yingkou City is approximately two-fifths times the size of Dalian City, while the economy volume is only
one-fifth times the size of Dalian City.
Table 1 The comparisons in population, area and GDP between Dalian and Yingkou
City
Population
Area
GDP(2010)
GDP(2011)
Yingkou
24.3(million)
518000(ha)
100.25(billion)
122.5(billion)
Dalian
66.9(million)
1323700(ha)
515.82(billion)
610 (billion)
0.36(times)
0.39(times)
0.19(times)
0.20(times)
Yingkou / Dalian
3.3.2 The industrial distribution of Yingkou Port is not rational and chain of industrial cluster development is incomplete
The extension of port industry development function is not enough. For long time, traditional transport for loading and unloading has
been main development feature of the port. Subject to the constraints of objective factors, the modernizing services function of port
in the logistics, information, industry zone is not fully expanded, especially a large number of coastline resources are not be fully
used in industrialization process, which makes it difficult for the port competitiveness to obtain a qualitative leap in traditional
transport and it difficult for unique resources advantage to transform into economic advantage and competition advantage of city. In
addition, in Yingkou the existing industrial layout and structure are similar to inland hinterland, without apparent port features and
advantages.
3.3.3 The pressure of railway and road transport for collecting and delivering is heavy and the size of the logistics industry is small as
a whole
Another focus on interaction between the port and the city is coordination of traffic. In the development of transport, various modes
of transportation constrain and complement each other. At present, the pressure of railway and road transport for collecting and
delivering is heavy in Yingkou, which to some extent restrict the range and capacity of concentration and radiation for port’s
economic power. The existing transportation network for collecting and delivering is difficult to meet the requirements of port
economy development in the aspects of handling capacity, accessibility and management coordination. Therefore, the support system
of upgrading port features and hub status should be constructed, forming sea transit system focusing on container, ore, and crude oil;
forming road transportation network system focusing on container, car, and ro-ro transportation through inside and outside of port
zone, forming specialized railway transportation network system focusing on ore, food, container, and car, forming port e-commerce
system offering service for international shipping and regional logistics business.
3.3.4 The financial innovation is not strong and financing channels are narrow
From the perspective of overall, finance of Yingkou City is still preliminary transformation period from traditional finance to modern
finance, with low innovation level. The efficiency that the finance promotes financial capital to ransform into industrial capital is also
in the low level. It is difficult to transform effectively financial resources advantage into industry development advantage. The
development of local financial institutions is also quite slow. There are also many problems that need to be solved in the aspects of
structure, quality, benefits, and system innovation.
3.3.5 The competition from other ports in Liaoning province is intense, which puts pressure on Yingkou port
Dalian Port is the main competitor of Yingkou Port. With the rapid development of the hinterland in Northeast China especially
central city-group in Liaoning, an impetus will be provided for the throughput of Yingkou Port to initiate a high growth of goods
including ore, coal, steel and so on. Hwever, Dalian Port will remain a position as the hub port in the North-East trade in the field of
container, oil, food, ro-ro shipping et al. In addition, Jinzhou Port, Dandong port will also compete with Yingkou Port, which will put
enormous pressure to Yingkou Port.
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4 Proposals for Better Interactive Development Between Port and City in
Yingkou
4.1 Enhancing government function
First, the government should attach importance to formulation of policies. The policy is the priority, no policy, no development.
Politics is the concentrated embodiment of economic, which is reflected through formulation of policies. Based on the characteristics
between port and city, the government should formulate a comprehensive policy on operating together of port and city, create a
favorable macro environment and promote coordination and rapid development for both. Second, the government should pay
attention to the overall planning, which can determine the future of urban development. Meanwhile, the seriousness and authority of
the planning should be insisted on. Effective approaches is adopting the same programs with the formulating planning when
amending the plan, which can be decided jointly by the relevant government personnel or even representative of the masses, rather
than decisions of certain persons.
4.2 Seizing developing opportunities
Yingkou City is one of cities in the spindle of the coastal economic belt in Liaoning, and also the only access to the sea in Shenyang
Economic Zone, which is the only overlay of two key areas supported by State. The privileged location can give priority to Yinkou
City. Now it is the best time to develop Yingkou City. The opportunity must be seized, which is more important than the preferential
policies. Seizing the opportunity is active and preferential policy is passive.
4.3 Coordinating relationship between port and city
First, the resources of port and city should be integrated. Based on the coordination and management mechanisms of government, the
resources such as the port area, industrial park, bonded logistics park and transportation networks of the city should be integrated,
together with implementation of the space layout of harmonious development of port economy. Second, the ports industry should be
upgraded. Port development supplied the protection and conditions for other industries related with the port. Only when the port
shows its advantages and leads the development of port industry, can Yingkou City play a further roll as a foreign trade port and
logistics platforms, and promote a further economic development of hinterland. Finally, the market interaction mechanism should be
established. Take the development of port economy as a link, establish market interaction mechanism and promote the interactive
development of port economy and urban economy. The interaction between port and city can be achieved through two keys, i.e.
industries related port and services from port zone.
4.4 Developing port industry
Developing port industries is the best choice for the integration of the port advantages and regional resources. Port industries should
coordinate with the regional economic structure and have the functions of leading the regional economic development. Through the
strengthening of industry associations, extending the industry chain, developing industrial cluster, the integration of port and city can
be achieved and the competitiveness of industry can be improved. Therefore, according to the status of economic development, the
Yingkou City should guide the development of six pillar industries with clear targets, combining the local economic structure and the
adjustment of industry layout, changing the comparative advantages into industrial advantages, forming a vibrant industry groups and
a real competitive edge and promoting economic development favorably. In addition, industries with low consumption, low pollution
and high efficiency should be encouraged and supported. The development model of a circular economy should be applied to settle
conflicts among population, resources and environment from an overall, coordinating the relationship and achieve sustainable
development.
4.5 Creating a favorable humanistic environment
Humanist environment refers to not only people's cultural quality, also refers to the local people's way of thinking and behavior,
which is the core of cultural content. Under the same background and the same policy, different regions are walking on the different
roads. The most representative Sunan mode and Wenzhou mode are the best of examples, and the different thinking way of people in
two cities decides their different development mode. In the developing process of the interaction between port and city, the people of
Yingkou should keep brave, inclusive and flexible characters, opening thought, good at learning and enterprising, contacting widely
the outside world, not excluding foreign culture, receiving advanced concepts and technology, by which the adaptability of changes
for external environment can be enhanced.
4.6 Focusing on the port logistics industry
First, accelerate promoting the construction of logistics. Logistics Park is a major mode in the port and logistics industry space, its
development can stimulate and promote the transformation of urban spatial structure, strengthen industry associations between port
and city. Second, develop green logistics. its goal is to draw environmental management into all aspects of the logistical industry,
reinforce environmental management and monitor of a series of logistics aspects including the custody, transportation, packaging,
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material handling, distribution, processing and so on, deter effectively pollution and resource waste caused by logistics developments.
Therefore, green logistical development models should be introduced to build a low-carbon port. Developing green logistics has
become a necessary choice for Yingkou Port.
4.7 Strengthening the construction of the financial system
First of all is to speed up financial innovation, enhance the function and quality of financial services, which includes the innovation
for the fields and varieties of services and developing of new business. Encourage the institutions such as banking, securities and
insurance to strengthen operational cooperation and achieve advantages complementation, and develop actively new products and
services to enhance the overall service function of the financial industry. Second is to broaden the investment channels and innovate
financing models. Strengthen introduction power for financial institutions, attract more banks, securities and insurance institutions to
establish branches in Yingkou. Recommend positively advantageous enterprises and key projects of Yingkou City to outside financial
institutions to attract projects investing and credit intervening from outside financial institutions.
5 Conclusion
In general, the development of port leads urban development, in turn, the prosperity of the city would also contribute to the prosperity
of port. The both complement and reinforce each other. As far as Yingkou, the port of Yingkou has played a strong role in pulling
urban economic development, promoting the agglomeration of port industries, optimization of industrial structure, the expansion of
the scale of urban area, the promotion of urban image and the development of coastal industry, also providing more job opportunities
for residents. Meanwhile, the development of Yingkou City also played a role in promoting port economy, which is mainly reflected
in improving port competitiveness and the port function, providing policy support and logistics space for the development of port.
But this power is weak to be compared with the former. In view of the imbalance of both powers, some measures including
strengthening government functions, seizing developing opportunities, coordinating relationship between port and city, expanding the
port industries, creating a favorable humanistic environment, developing port logistics industry and intensifying the financial system,
should be adopted to promote favorably the development of the interaction between port and city in Yingkou.
Acknowledgment:
This paper is from Fund Project, i.e. Liaoning province projects of doctoral scientific research fund “Research on Developing Model
of Port Economy in Yingkou of Liaoning province” (No. 20101050).
References
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[3]. LI Ran. Study on Development Relationship Between Port and City in Tianjin [D]. Dissertation for Master Degree of Tianjin
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[4]. LIU Yang, LU Minghua. Research on Port Impacts on Urban Development---Take Yingkou Port in Liaoning Province as an
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