Eimskip Opens Qingdao Warehouse

Tuesday, October 9, 2007 9:22

Eimskip

With retail chains forming around China (Lianhua, Walmart, etc), there has been a lot of news recently on China’s sad state of affairs when it comes to cold storage. A lack of trucks, containers, warehouses, and just a generally difficult process for approvals for those who are wiling to invest.

So, when Eimkip opened their brand new warehouse in Qingdao (through put of 500,000TEUs), it goes without saying that people were excited… Baldur Gudnason (CEO of Eimskip) had this to say in front of the 350 other Icelanders

This is a very exciting project, which supports the current operations of Eimskip China. We have established 4 offices in the country in recent years and currently around 100 people work for Eimskip in China. The cold store project started with the visit of Mr. Olafur Ragnar Grimsson to Qingdao in 2005 and is now concluding successfully.

Qingdao PortLocated between Shanghai and Beijing, Qingdao is know best perhaps for its beer Tsing Tao (same pronunciation…just a different spelling), however Qingdao has a very long history as one of China’s original trading ports. Heavily influenced by the west, Qingdao has always had a strong port (see map), has seen a lot of western business and with this new warehouse, they are sure to garner more interest from those in the food industry (not just fish processing as mentioned in this Shanghai Daily article).

In addition to this opening, and the planned expansion, Eimskip’s website also announced that they had taken a stake in the Linyi container depot (110,000m2) . According to their announcement:

Eimskip has a call option to buy additional 20% share in Luyi Depot. Former owners will hold 40% share and will further develop the operation of Luyi Depot with Eimskip.

This investment obviously is a positive sign for things to come, but I cannot help but wonder where they will get the trucks needed to support the facility.

For anyone interested in learning more about cold chain in China, I would suggest you download this Accenture report or this AT Kearney Report. Both give a good overview of the industry, the need, and the hurdles. The September edition of CHaINA also has a great article on cold chain as well.

For more on Qingdao, see Dan Harris’s comments on a trip he took there. I personally have yet to make it there, but from everything I have heard, it is a place I need to go.

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3 Responses to “Eimskip Opens Qingdao Warehouse”

  1. China Law Blog says:

    October 9th, 2007 at 10:14 am

    Great post. Qingdao is really becoming a food center (fish and fruits and vegetables) and something like this only takes them farther along that path.

  2. Qingdao says:

    October 19th, 2007 at 1:29 pm

    Recently the city has also payed closer attention to pesticide levels of exported produce as well as antibiotic & hormone levels of various meat & seafood products.

    This last spring the Global Trade Conference on Aquaculture was held in Qingdao on May 29th – 31st 2007.

    http://www.thatsqingdao.com/qingdao-news/international-business/global-trade-conference-aquaculture.html

  3. Rich says:

    October 19th, 2007 at 9:20 pm

    Thanks thats. It isgood to hear that.iam sure some of this comes from the recent tit for tat with the us ovr fish.