We provide a growing number of ancillary and extended services, including logistics services, trade facilitation services, financing-related services, and other value-added port services. We strive to anticipate and meet the broad range of needs of our customers and other parties who transact with us or our customers. Customers of our ancillary and extended services include our port service customers such as shipping companies, cargo owners, manufacturers, suppliers of raw materials, agents for participants in the shipping process as well as other parties who transact with our port service customers.

Leveraging our port facilities and information advantage, we have extended along the logistics value chain and offer a growing number of modern logistics services in addition to traditional port-related logistics services.

We provide trucking services for road transportation of containers, metal ore and coal and other general cargo. We currently provide most of our trucking services with trucks owned by third parties and to a lesser extent with our own trucks. We intend to expand our own truck fleet to further reduce transportation costs of our customers.

We provide various agency and clearance services. We serve as freight forwarding agent for cargo owners to identify and negotiate for shipping service on behalf of the cargo owners. We also help a variety of customers with customs documentation and declaration. Capitalizing on our physical proximity to and close working relationships with the parties involved in the activities around the port, we are able to provide efficient and effective agency services to shipping lines, freight forwarders, importers and exporters.

Leveraging the bonded area privileges of our Qianwan Port Area, we provide a wide range of bonded area services, including warehousing, processing, transshipment and other logistics services. Our bonded area provides our customers with exemption or reduction from customs duties, value-added tax, consumption taxes or import or export quotas, and offers more convenient customs clearance procedures. In addition, we also provide bonded warehousing services at all of our four port areas.

To further penetrate our hinterland and provide better one-stop logistics service for our customers, we collaborate with many dry ports and provide dry port services in four cities, including Zhengzhou in Henan province. Through the dry ports, we provide basic port-related services, such as customs clearance and documentation, and enhanced logistics services, such as two-way cargo sourcing and regional cargo distribution service. Dry ports congregate regional cargo sources and establish a direct and efficient logistics channel between our ports and the dry ports, which significantly improves logistics efficiency for our customers.

Leveraging our throughput of bulk resource and energy cargo, the congregation of trading and customers at our facilities, and our credibility among our customers, we provide trade facilitation services including trade brokering services and trade information distribution services.

Many of our customers, such as shipping companies and cargo owners, have financing needs in their business activities. Financial institutions often contract us to store and monitor goods used as collateral in financing services they provide to our customers, such as loans collateralized with warehouse receipts. We believe that these financing-related services facilitate liquidity services to our customers’ liquidity and help increase their trade volume, which in turn increases our throughput.

We provide a wide range of other value-added services at the Port of Qingdao, including: ancillary services such as tallying, tugging and barging; container-related services, such as container vanning and de-vanning; and simple processing services, such as sifting, washing and blending of metal ore and coal, and sorting and re-packing of other general cargo.