Student observations on the largest crude oil storage and transport facility in the region
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Yangshan Shengang International Oil Logistics Co. Ltd. is a storage terminal located at one of the busiest hubs in the world.
We had the privilege of visiting the terminal, which was about two hours’ drive from Rizhao, and had a chance to see the workings of the storage and transport facilities.
We observed that the relatively large terminal had a relatively small number of staff at work. The operations seemed to be highly automated and thinly staffed, in complete contrast to the labour intensity which stereotypes Chinese industry.
We also saw that the terminal was very stringent on safety standards, which have now come under scrutiny in several of China’s industries. We underwent a thorough check at the entrance, and were first shown the fire station, which was fully equipped, with ten firemen and two fire engines on standby.
We saw this terminal as strategically very significant to China’s position in crude oil and derivatives in the region, and were able to get an insight into its highly efficient and automated operations. Data from large oil terminals such as Yangshan Shengang is critical to traders when examining the different strategies being used in the market, and to pre-empt the impact of these strategies regional pricing.
Read more about SMU’s Industry Study Mission China visit to Yangshan Shengang International Oil Logistics Co. Ltd.
Credit: International Trading Institute@SMU