SAIC’s strong chain layout overseas business: invest in the construction of China’s first dual fuel ocean going vehicle carrier

According to the data of the Ministry of industry and information technology, China’s automobile export reached 2.015 million in 2021, a year-on-year increase of double. This is the first time that China’s automobile export has crossed the threshold of 2 million, breaking the situation that the overseas market has been hovering for many years.

Under the background of carbon neutrality, the blowout development of overseas business has put forward new requirements for Chinese automobile related service supporting enterprises, especially in the field of maritime logistics. This means that to promote the high gold content “made in China” to the world, we need to vigorously strengthen the chain and supplement the chain.

On January 17, Saic Motor Corporation Limited(600104) officially signed an agreement with China Cssc Holdings Limited(600150) group. CSSC Jiangnan Shipbuilding will “tailor” two LNG dual fuel, low-carbon and environmental friendly ocean going motor carriers (RO ro ships) with 7600 parking spaces for Anji logistics under SAIC, actively meeting the growing export business needs of SAIC and other independent and foreign brands in China.

Wang Zemin, general manager of SAIC Anji Logistics Co., Ltd., said in an exclusive interview with Nanfang + that since 2016, Anji logistics has successively opened many ro ro international routes from China to Southeast Asia, Mexico, South America and West, Europe and other countries. The distribution network covers more than 600 cities in China and more than 100 countries overseas. In the future, Anji logistics will further accelerate its business development, Provide cross ocean logistics support for China and even the global automobile industry.

“carbon reduction” overweight cross ocean automobile logistics

Anji logistics, a subsidiary of Saic Motor Corporation Limited(600104) , is the world’s first auto parts and vehicle logistics enterprise. Its distribution network covers more than 600 cities in China and more than 100 overseas countries, with an annual shipment volume of tens of millions of vehicles.

As an important part of SAIC’s global supply chain center, Anji logistics has built a strong logistics system covering 30 waterway trunk lines, 130 railway trunk lines and 4900 highway trunk lines in China. At the same time, Anji logistics has actively built a transportation network overseas, taking the lead in opening up the first ro ro international route independently operated by Chinese auto enterprises – China to Southeast Asia. So far, it has successfully built six international routes in Southeast Asia, Mexico, South America, West America and Europe.

“this is the first ro ro ship with 7600 berths invested by Chinese shipowners, because the dual carbon target is very important in our whole industry. LNG dual fuel is an effective solution to reduce carbon emissions in the short and medium term.” Wang Zemin said that the two ships built this time fully comply with the requirements of European regulations. After completion, they will be mainly used for Australia New Zealand routes, taking into account European routes.

It is reported that the RO ro ship contains a C-type double ear tank with a cabin capacity of 4000 cubic meters and can carry 7600 international standard passenger cars, which can meet the environmental protection and emission requirements of developed countries and regions in North America, Europe, Australia and New Zealand in 2030, and basically meet the gas demand of a round-trip voyage between China and South America and China and Europe.

At the same time, with China’s export, a large number of products include new energy products and intelligent network products. The new ro ro ship is built in 13 layers of plywood, and the top 4 layers of plywood are specially designed for new energy vehicles and even hydrogen fuel vehicles. “To a certain extent, it has also made some modifications to improve the height of our Chinese products, including ship lightweight, and reasonably reduce some structural parts.” Wang Zemin said.

support the overseas export of Chinese brands

In fact, Anji logistics continues to accelerate the layout of Automobile Ro ro business and build a strong, safe and efficient global supply chain system to escort the overseas business of Chinese brands, including SAIC.

According to the data, China’s automobile export reached 2.015 million in 2021, a year-on-year increase of double. Only Saic Motor Corporation Limited(600104) itself, the overseas sales in 2021 reached 697000, including 598000 exported and 99000 produced and sold in overseas bases. This means that “for every three Chinese cars sold overseas, one is made by SAIC”. Products and services have landed in more than 70 countries and regions around the world, forming six “50000 car level” regional markets in Europe, Australia and New Zealand, the Americas, the Middle East, ASEAN and South Asia.

Among them, “China’s single brand overseas sales champion” mg brand overseas sales reached 360000, ranking among the top 10 single brands in 17 countries around the world; As the first Chinese automobile brand to fully cover the electric segment of light commercial vehicles in Europe, Maxus brand has sold 52000 vehicles overseas; In India, after the pre-sale of the new mg Astor equipped with intelligent Internet connection function was opened, all 5000 pre-sale places were robbed in 20 minutes, and the deposit orders exceeded 11000 within 2 hours.

“with the increasing volume of made in China exports, RO ro resources are relatively tight. At present, although our foreign trade business has just started, we will continue to increase investment, and actively look for external partners to quickly build a foreign trade fleet to ensure that Chinese automobile products can be transported abroad.” Wang Zemin said.

“SAIC’s sales in overseas markets have increased rapidly in recent years, which fully reflects our scale effect.” The relevant person in charge of Saic Motor Corporation Limited(600104) said that behind these data, supply chain enterprises have played a major guarantee role. According to the 14th five year plan of Saic Motor Corporation Limited(600104) , overseas sales will reach 1.5 million vehicles.

Industry analysts also pointed out that Chinese brands, including SAIC, need to go out in a systematic way and support each other upstream and downstream. Now, with the rhythm of the global automobile industry supply chain disrupted, Anji logistics has increased its overseas business layout, which actually breaks the bottleneck in the field of China’s automobile export logistics and establishes a support platform for Chinese brands to go to sea.

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