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Strategic Master Plan for Port Expansion in China

BMT delivered a port master plan to assist the customer in establishing a technically and financially viable roadmap, as well as a strategic business model to better position the port for returns on investment.

The Requirement

BMT was assigned by Sime Darby Berhad, a Malaysia-based conglomerate, to formulate a strategic blueprint for the development of Weifang Port, located in the Shandong Province, China.

A series of studies were conducted by BMT including the pricing strategies, cargo throughput forecasts, cost audit and structural integrity review, and later a strategic masterplan for the focal port.

A unique challenge is the metocean conditions of the Port. Due to shallow water and sedimentation in the Laizhou Bay area, the Port needed to be positioned far away from the coastal line to gain sufficient water depth.

Layout design was crucial to the operational feasibility and efficiency of the port, and cautious costing of

infrastructure and facilities was required to testify the financial viability.

The Approach

To incorporate the changing economic and competition environment in the region, BMT completed an extensive stakeholders’ investigation in the Shandong peninsular, including visits to major ports in the region such as Rizhao, Qingdao, Yantai, Longgong, Laizhou and Dongying.

Based on BMT’s experience and shippers’ feedbacks, a modified throughput forecasting model was built up measuring the influences of combined port determining factors.

The design of the port layout incorporates multiple considerations in technical, business and commercial perspectives in order to develop the most efficient and cost effective master plan.

A creative design of “pencil shaped” breakwaters was proposed with implementation plans by phase to achieve an economical expansion.

Outcome and Benefits

BMT provided the customer with the port master plan they need to establish a technically and financially viable roadmap, as well as a strategic business model which helps to better position the port for returns on investment. The concrete design provides feasible solutions to the engineering challenges, and thus granted confidence to the customer to invest.

Based on the completed master plan, Sime Darby funded a total of RMB 2.8 billion (RM 1.4 billion) for the expansion work. The Client expected to complete the construction and raise the port capacity to about 50 million tons during the next phase.

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