Lin Zuyi:A pioneer of reform and innovation in China’s water transport

An interview with former Vice Minister of Transport Lin Zuyi

As the first captain fostered by the People’s Republic of China, former general manager of China Ocean Shipping (Group) Co, former vice Minister of Transport, Lin Zuyi has promoted and witnessed many “firsts” in the reform and opening up of China’s water transport.

He was keen on reforms and innovations ranging from ship's routing, five “fixed” liner, industrial test of container to pursuing and securing the status as an A-level council member state of the International Maritime Organization.

“Reform is a systematic project, not a simple matter, because it involves many ideological issues and details to be attended to. However, attention shall not be always paid to debate. Once it is determined, reform shall be carried out with resolution and be tested by practice,” the 87-year-old Lin Zuyi clearly recalled the situation, trend and events over the past 40 years since China’s reform and opening up in 1978.

Lin Zuyi:“Five fixed” liner eliminates disputes with practice

Maintaining a keen insight into the development trend of things is a precious character of pioneers. It was this keen insight that promoted the establishment of the "five fixed" liner more than 30 years ago.

China officially began the international standard container shipping in 1978. By 1985, China already had 38 container ships, 13 ro-ro ships with over 40,000 twenty-foot equivalent units (TEUs) and launched container transport routes linking to Japan, the United States and Europe.

“But due to the waiting time for goods collecting and vacant berth, as well as differences in business philosophy, China had no regular liner for a long time, which badly affected the reputation of China’s shipping industry and weakened our competitiveness in the international shipping market,” said Lin.

In the beginning of 1985, China attempted to launch a container shipment route to Europe but the schedule was not guaranteed because of overstock in the port and delayed collection of goods.

“The State Council urged the ocean shipping departments to operate the liners well even if it would lose money. It is determined to build a reputation,” he noted.

There was a fierce debate on the expense. Some people hold that it was worth waiting another day if 200 or 300 more TEUs could be loaded.

With the support of State Council officials and the coordination of all parties involved, the debate continued only as an academic issue but the liners were operated on schedule at any cost to create a trustworthy brand. In the beginning of 1986, the Ministry of Transport released a notice that some of the routes linking to the United States, Canada, Europe, Australia, Mediterranean and Persian Gulf were included in the five fixed (fixed route, fixed ship, fixed goods varieties, fixed berth and fixed time) liners and operated according to the schedule.

A series of reformative measures were carried out to improve the logistic services like crew deployment, food supply, material supply, ship repair, and scheduling and tracking of liners, so as to adapt to the new pace of liners.

All port authorities, ocean shipping companies and shipping agencies had specially-assigned person to take charge of it. The port designated berth for liners. The ocean shipping companies fixed the liner ships and tracked their operations. Once they found that the ship cannot return on time, timely adjustment of ship would be made. In order to ensure that liners sail on scheduled shifts, port authorities had also established a regular contact mechanism with shipping companies, foreign agents, shippers and cargo owners to jointly make and implement transport plans.

“The plan worked out well, after six months’ operation, it was acclaimed by the international community. China managed to operate liners on schedule that only could be done by developed shipping powers,” Lin added.

Export-oriented manufacturers then organized production according to liner schedules, and their efficiency had been greatly improved. Some factories even got rid of the dilemma of going bankrupt due to failing to deliver goods on time. As liner schedules were guaranteed, the supply of cargo increased. The frequency for a round trip between China and the eastern United States had risen to five ships in 75 days from six ships in 90 days.

Lin Zuyi:The Industrial Test of Container Initiated Joint Office

Container transport requires hardware and software support, as well as social cooperation, since it is a comprehensive system. At the end of the 1980s, container liners and irregular container ships have emerged in China, but traditional bulk cargo transport management was still widely used and many links are not matched well.

Lin Zuyi, who used to be a captain, pays special attention to the improvement of maritime management. At the end of 1989, Lin Zuyi led a reform of international container multimodal transport management. Many new practices initiated by Lin Zuyi were widely used, which paved the way for the formalization and modernization of international container transport in China.

“It was the first time to conduct industrial test on transport system in China,” Lin Zuyi recalled. Under the approval and support of the State Planning Commission, the industrial test on international container transport system (referred to as “the industrial test”) was hosted by the Ministry of Transport, and undertaken by the Waterborne Transport Research Institute of the Ministry of Transport, Shanghai Port and Transport Office of Shanghai Government. The industrial test was launched at the Shanghai Port, and more than 50 units from the transport, railway, economic and trade departments participated.

The industrial test took one year and a half. When the State Planning Commission reviewed the industrial test, it was regarded as a big success.” In retrospect, Lin Zuyi felt gratified.

The success of the industrial test has improved productivity and achieved win-win results for all parties. It set a good example that can be promoted and applied. “Joint office is not unusual and exists in many places now. But it was initiated by us.” Lin Zuyi said, there were more than 30 units related to container transport before the industrial test, and it took three days to go through all the procedures since these units were scattered in different places. During the industrial test, all of these units have set up offices in a two-floor building, and the procedures for container import and export can be completed within half a day.

Besides, the industrial test also determined all the procedures and formalities in the whole process of multimodal transport; it changed the practice of using traditional bulk cargo transport documents for container transport; promoted container transport documents; and rectified the disorderly fee charges……

The industrial test brought profound changes to the international container transport system with the Shanghai Port being the hub port, and provided assurance and strong support for the opening-up of Shanghai Pudong New Area and the export-oriented economy of the Yangtze River Delta. Subsequently, the experiences accumulated by the industrial test were promoted and implemented in various ports across the country.

Lin Zuyi:A Maritime Powerhouse Recognized by the World

In the mind of Lin, there was another extraordinary breakthrough in 1989 that impressed him. In that year, China made its debut on the world shipping arena and became one of the only eight A-class members of the International Maritime Organization at that time. Lin Zuyi is one of the main promoters of this milestone.

The International Maritime Organization was established in 1959. At the beginning of its establishment, there were 24 members. In 1983, this number was expanded to 32. China officially joined the International Maritime Organization in 1973 and was only elected as a B-class member in the year 1977, 1979, 1981, and 1985. At the end of the 1980s, the transport capacity of China's shipping fleet has ranked the seventh or eighth in the world and already had the strength to run for the A-class member.

"There are only eight seats in the A-class member state. If a country is newly elected, it means that another country will be taken out. Each of the eight countries has extraordinary maritime capabilities." Lin Zuyi recalled that in March 1989, China applied to be a A-class member to the International Maritime Organization. However, only 40 countries expressed support for China at the initial stage, which was a weak voice among over 150 member states.

The election of A-class members of the International Maritime Organization is not only a contest of national strength, but also a competition for the collective and personal wisdom of the campaign team. In the face of the passive situation of the campaign, the Chinese delegation led by Lin Zuyi made various efforts to turn the tide.

"For the national honor, we cannot retreat, we must fight." Lin Zuyi recalled that they communicated with as many countries as possible, and did their best to do every job without giving up any opportunity that might bring a turnaround. Just one day before the vote, there was a major turning point. Lin Zuyi seized the opportunity and decided to adjust the campaign opponents. China eventually won the valuable seat as one of the eight A-class members of the International Maritime Organization and gradually played a greater role in participating in international maritime affairs.

"The success of election marks the international recognition of China's maritime power status and has gained the valuable voice in the international maritime community. Adhering to the principle of equality, mutual benefit, fairness and justice, China always fights for the rights and interests of developing countries actively from the perspective of developing countries. " Lin Zuyi said, since 1989, China has been elected as an A-class member of the International Maritime Organization for 15 consecutive years and has become the undisputed shipping powerhouse in the world.

Lin Zuyi:Stay True to the Mission, Toward the Glory and Dream

"The day before yesterday, I saw a report that the 20,000-ton ore ship named 'Jianghai Zhida 1' was directly sailed from Ningbo, Zhejiang Province to Ma’anshan Port of Anhui Province..."

"I saw a report yesterday. Another 20197 TEU container carrying ship of COSCO Shipping was delivered..."

During the interview, Lin Zuyi often mentioned “news”, so that the contrast between the past and the present makes the communication easy to carry on.

China COSCO is a pioneer in opening up to the outside world, because international transport shall be in accordance with international rules. Ocean transport is the ballast stone of foreign trade. Our fleet has the most advanced types of ships in the world: 20,000 TEU Container ships, 300,000-ton oil tankers and 400,000-ton ore ships... The world's most advanced ships are steered by Chinese people, and Chinese pilots can pilot any super-huge. The rapid development and continuous improvement of navigation education have cultivated the best senior crew in the world!" Lin Zuyi said proudly.

Lin Zuyi also pays special attention to the construction of the "21st Century Maritime Silk Road" and believes that in the process of promoting the interconnection of countries along the "Belt and Road", people in the communications industry bear great responsibility and a glorious mission.

“Marine is the lifeline of the economy. 90% of China's foreign trade volume is via maritime transport. The Belt and Road Initiative not only opens up a new path for China's economic development, but also creates opportunities for world economic development by upholding the principle of achieving shared growth through discussion and collaboration.” Lin Zuyi said, at present, among the top ten ports in terms of global port cargo throughput and container throughput, Chinese ports occupy seven seats. And new technologies such as fully automatic terminals have greatly improved loading and unloading efficiency. At the same time, along the Belt and Road, Pakistan, Sri Lanka, Greece ... the grand chess of port cooperation is underway.

Looking forward to the future, Lin is full of confidence.