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CMG eyes more B&R projects

By Zhou Mo in Shenzhen | China Daily | Updated: 2017-09-21 07:40
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State-owned conglomerate China Merchants Group (CMG) said it will step up efforts to explore opportunities in the Belt and Road Initiative and use its rich experience overseas to help develop local economies.

Founded in 1872, the Hong Kong-based company mainly covers three businesses-industry, finance, and capital investment and operations.

CMG is the developer and operator of the Shekou Industrial Zone in Shenzhen, which was the pioneer in the establishment of the country's first special economic zone.

"We have developed a PPC (port-park-city) mode in the Shekou Industrial Zone," said CMG Chairman Li Jianhong.

"Now, we are making efforts to promote the mode to Belt and Road countries and regions. We'll take advantage of local resources to build industrial parks there. By doing so, we hope to help develop the local economy and improve the local people's livelihood."

The PPC model has achieved great success in Shenzhen. The port push-ed the establishment of the Shekou Industrial Zone, which brought more businesses and people and thereby prompted the whole city's development.

"CMG played the role of a pioneer in the previous round of reform and opening up. In the new round, we hope to act as a model," Li said.

CMG has so far invested in 49 ports in 19 countries and regions, including Djibouti, Sri Lanka and Turkey.

The company is one of the investors in the China-Belarus Industrial Park project, which covers an area of 91.5 square kilometers.

The company has invested $500 million into building a logistics park in the area.

In addition, it is actively promoting port and industrial park projects in Lithuania, Russia, Indonesia and Tanzania, among other countries.

"In the next step, we will make more efforts on developing projects on the Belt and Road, with China-Europe freight trains as the carrier and China-Belarus Industrial Park as the pioneer … to make better implementation of the Belt and Road Initiative," said Li Xiaopeng, group president and vice-chairman of CMG.

Liu Guohong, director of the Finance and Modern Industry Research Center at Shenzhen-based think tank China Development Institute, said CMG has the strength and experience to participate in the construction of Belt and Road projects.

But to successfully export its PPC mode overseas, CMG needs to take several factors into consideration, he added.

"Political and economic stability is an important precondition," Liu said, pointing out that the success of its PPC mode in China has been achieved against the backdrop of the country's reform and opening up.

"Moreover, whether there are abundant local human resources or whether local people are willing and able to adapt to the global industrial system are also issues to consider," Liu added.

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