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New Cargo Gateway Opens in Southern Zhejiang: What Foreign Founders Should Know

A new public container terminal at Wenzhou Port's Pacao operation area is set to improve logistics for manufacturers in Longgang and surrounding areas, reducing reliance on distant ports. For foreign founders operating in China, this signals better export options and supply chain efficiency in southern Zhejiang.

New Cargo Gateway Opens in Southern Zhejiang

Foreign founders with manufacturing or trading operations in southern Zhejiang should take note of a significant infrastructure development: the first phase of the Wenzhou Port Pacao operation area is accelerating construction and is scheduled to be operational in the second half of next year. This project, located in Longgang, is poised to become the city's first public container cargo terminal and is expected to address the region's longstanding shortage of freight facilities.

Project Details and Capacity

According to the source, the project plans four 5,000-tonne-class cargo berths, supported by an 8.8-kilometer dedicated approach channel and standardized storage yards and warehouses. The annual design throughput is 4.8 million tonnes, with a complementary design split evenly between containers and bulk cargo. The terminal will also feature smart channel construction. This is described as a key project to fill the functional gap in port services in southern Wenzhou.

Construction has faced delays due to multiple typhoons this year. From July to September, construction vessels were forced to shelter, losing over two months of work time. Additionally, the typhoons caused significant siltation in the harbor basin, requiring nearly 300,000 cubic meters of dredging to be redone. Despite these challenges, a piling vessel with a 105-meter-high pile frame is now in position, and pile foundation work is set to begin at the end of the month.

Economic Impact for Local Businesses

For foreign founders, the key takeaway is the potential reduction in logistics costs and turnaround times. Historically, goods from southern Wenzhou had to be transported to other ports for transshipment, leading to higher costs and longer delivery times. Once the new terminal is operational, cargo from Longgang, Pingyang, Cangnan, Wencheng, and Taishun can be loaded and shipped directly from the local port, making trade more convenient.

Longgang, known as China's first farmers' city, has grown into a modern coastal city with a robust private manufacturing sector, particularly in printing. However, the lack of industrial cargo terminals has been a bottleneck. The new port is expected to alleviate this and support the region's export demands.

Integrated Port Development

The development is part of a broader "one port, two zones" strategy. While the cargo terminal focuses on industrial exports, the adjacent Pacao central fishing port is being upgraded. The fishing port has already been transformed into a national-level central fishing port and a pilot for a national coastal fishing port economic zone. It now integrates fishing, aquaculture, cold-chain processing, seafood trading, and coastal tourism.

The two zones are designed to complement each other: the fishing port serves the marine industry and livelihood, while the cargo terminal facilitates industrial trade and opens up external channels. The adjacent shoreline and interconnected road networks are expected to unlock the full value of the bay.

Multimodal Transport Connectivity

On land, the region is well-connected through the Ningbo-Taizhou-Wenzhou Expressway expansion, National Highway 228, urban trunk roads, and cross-river channels. Dedicated port roads link the port area with major industrial parks, enabling efficient movement of raw materials and finished goods. By sea, the dual ports facilitate both fishery logistics and industrial shipping. In the low-altitude sector, the southern Zhejiang low-altitude economy innovation incubation base is attracting more enterprises, filling gaps in low-altitude logistics, emergency support, and industrial inspection.

With these developments, Longgang is positioned to become a key regional transport hub in southern Zhejiang and northern Fujian.

Practical Implications for Foreign Founders

If you are considering establishing or expanding a manufacturing or trading company in southern Zhejiang, this new port could offer tangible benefits. Reduced logistics costs and faster export processes can enhance your competitiveness. The region's strong industrial base, especially in printing and manufacturing, combined with improved infrastructure, makes it an attractive location for export-oriented businesses.

When setting up a company in China, it's essential to understand local incentives and infrastructure advantages. The Pacao terminal project is a clear signal of the government's commitment to improving trade facilitation in the region. Foreign founders should monitor the project's progress and consider how it might fit into their supply chain strategies.

For assistance with company registration and operations in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

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