A grain transportation port connecting Russia and China is under construction in northeast China’s Heilongjiang Province, local authorities said. Construction of the port began in early April. The first stage, with 150,000 tonnes of annual throughput, will be completed by September this year…Full Article: Xinhua Apr 2018

Key Point

  • Once completed in September 2018, Heilongjiang Province’s Fuyuan (river) Port will have an annual throughput capacity of 650,000 MTs. The port will be constructed by Heilongjiang Shipping Group and Dongjin Group (~USD 48 million investment), and will form a trade link with the Russian ports of Khabarovsk and Nikolayevsk-on-Amur, Khabarovsk Krai.

ChinaAg Comments

  • In October 2019, according to an official from the Heilongjiang Traffic Department, a CNY 2.47 billion (~US$355 million) highway bridge connecting China and Russia over the Heilongjiang River is supposed to open.
  • From January to September 2017, Chinese fresh produce exports from Heihe Port, Heilongjiang Province, to Russia reached 57,500 MTs. The leading fresh produce exports from China’s Heilongjiang Entry-Exit Inspection and Quarantine Bureau (i.e. Heihe Port) to Russia included potatoes, onions, turnips, apples, oranges, and grapes. Heihe Port is located ~100 meters from Blagoveshchensk, Amur Oblast.
  • In late October 2017, Dongjin Group began exporting (~3,000 MTs per day) its Russian grown soybeans to Fuyuan Port, Heilongjiang Province. It is estimated that the company produced 40,000 MTs of soybeans on 200,000 mu (~13,333 hectares) of Russian farmland.
  • In August 2017, Harbin’s Dongjin Group signed an agreement with two farms in Khabarovsk, Russia, to lease 800,000 mu (~53,333 hectares) of farmland. Dongjin Group will primarily use the land to grow and export soybeans back to China. The agreement brought the total amount of Russian farmland under lease by Dongjin Group to 1 million mu (~66,666 ha).  Russian farmland is attractive to Chinese soybean producers owing to its cheap annual leasing rates (CNY 10 per mu vs. ~CNY 500 per mu in Harbin), low monthly wages for workers (~CNY 3,500 per worker vs. ~CNY 10,000 per Chinese worker), and affordable diesel (60% cheaper in Russia vs. China).
  • In April 2017, Russia exported its first bulk shipment of wheat via China’s Manzhouli customs point (land port) in Inner Mongolia Region. COFCO Group, a state-own food conglomerate, was the Chinese importer of the Russian wheat. The President of COFCO noted that his company plans to import 1 million MTs to 2 million MTs of Russian wheat annually, though imports may rise to 4 million MTs to 5 million MTs.
  • In March 2017, Russia’s Agriculture Minister stated that his country plans to export 1.5 million MTs worth of agricultural products to China in 2018. The bulk of Russian exports will be grains (barley, other cereals), oilseeds (soybeans, canola, flaxseed), and sunflower oil.
  • In October 2016, two new Russian Far East trade corridors with the Chinese provinces of Jilin and Heilongjiang were under construction. The Pogranichny-Suifenhe border checkpoint in China’s Heilongjiang Province and Russia’s Primorsky Krai is a major overland trade hub. However, Russia is constructing two international transportation corridors (Primorye 1 and Primorye 2) that will link up with the Chinese provinces of Heilongjiang and Jilin. Both transportation corridors will be administrated by the city of Vladivostok.
  • In March 2016, China’s Minister of Agriculture encouraged Chinese companies should invest in the agriculture sector of Russia’s Far East.
  • In December 2015, China and Russia signed quarantine inspection agreements on Russian exports of wheat, corn, rice, and soybeans.
  • In October 2015, China’s Food Conglomerate, COFCO Group, announced plans to construct two warehouses (100,000 MT capacity each) in Russia’s Far East. COFCO was interested in constructing the warehouses in Russia’s Mikhailovsky priority development territory located in southern Primorsky Krai.
  • In June 2015, China announced it would start the construction of a joint Chinese-Russian livestock agricultural complex in Heilongjiang province. The agricultural complex will developed by China’s Zhongding Dairy Farming and Russia’s Severny Bur, with approximately 100,000 ha of Russian and Chinese land to be used to grow animal feed. Russia’s Primorsky Krai borders China’s Heilongjiang province. During the same month, a Zhejiang-based company was granted permission to lease 115,000 hectares of uncultivated land in Russia’s Transbaikal region (i.e. Zabaykalsky Krai). The Chinese company plans to use the land to grow vegetables, wheat, and other agricultural commodities, as well as raise livestock.
  • In 2012, the Harbin Dongjin Gomel Agricultural Machine Company JV sold 660 forage harvesters and ear corn harvesters. This was triple the number of harvesters that were sold in 2011. The JV specializes in the manufacturing of 4YZQ-4 ear corn harvesters and self-propelled forage harvesters KSK-600 “Palesse FS60”.
  • In December 2012, Heilongjiang Province’s Nongken Beidahuang Business and Trade Group (see Beidahuang Group) was working to establish a “Friendship Farm” on ~130,000 hectares of farmland in Russia. At the time, roughly 6.7 million hectares of farmland was sitting idle in Russia’s Far East. A representative from the Russian United Grain Co estimated that Siberia could potentially export 8 to 10 million MTs of grains by 2020.
  • In June 2012, the Russia-China Investment Fund (RCIF) was established by the Russian Direct Investment Fund (RDIF) and China Investment Corporation (CIC). The private equity fund initially received US$2 billion from the RDIF and CIC (equal share). The RCIF was tapped to invest 70% of its funds in Russia and CIS countries (i.e. Central Asia), while the remaining 30% would be invested in China.
  • In 2009, Gomselmash (Belarus) and Dong Jin Group Corporation (China) established the Harbin Dongjin Gomel Agricultural Machine Company joint-venture in Heilongjiang province.
  • Founded in 1998 and headquartered in Harbin, Heilongjiang Province, Beidahuang Group is a state-owned enterprise that formed from provincial state farms established during the 1960s. The company produces, imports, and distributes a variety of agricultural goods including corn, rice, wheat, soybeans, pork, etc.  Its wholly-owned subsidiaries include Heilongjiang Agriculture, Jiusan Oil and Fat, Wondersun Dairy, Beidahuang Rice, Beidahuang Meat, Jiusan Fengyuan Wheat, Beidahuang Seed, Beidahuang Malt, Beidahuang Cereals & Oil Wholesale Market, Duo Duo Group, Wondersun Pharmaceutical, and Harbin Longken Malt.
  • In 2004, the Sino-Russian agricultural joint venture “Armada” was established. The agricultural JV covered an area of 40,000 hectares in Russia’s Primorsky Krai region.
  • In the 1950s, the USSR sent agricultural experts to China’s Heilongjiang Province to establish a “Friendship Farm” that utilized Soviet farming techniques.

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