Cooperation Between IZP and Russia to Build a New Generation Far East Free Port

Sep 24, 2015, 10:00 ET from IZP Technologies Group

BEIJING, Sept. 24, 2015 /PRNewswire/ -- On September 3, the first East Russia Economic Forum was held in Vladivostok, Russia, and a delegation of Chinese enterprises led by Chinese Vice-Premier Wang Yang attended the forum. Wang Yang said at the Forum that the participants were large Chinese enterprises and their turnover has reached $1.7 trillion, contributing one-sixth of China's GDP in 2014. He added that there were 10 ministers and four provincial governors within the delegation.

Wang Yang said that China attaches great importance to the cooperation with Russia in Far East development. The Chinese delegation, comprised of central and local governors and large enterprises, was aiming to implement the important consensus reached by the heads of the two countries, and promote pragmatic cooperation in all aspects in the Far East. China is willing to cooperate with Russia in fields of resources development, processing and manufacturing, modern agriculture, port logistics and infrastructure to expand investment cooperation, achieving mutual benefit and opening a new space for pragmatic cooperation between China and Russia.

Mr. Putin appreciated that China had sent a high-level governmental delegation and that a large number of powerful enterprises were able to participate in the East Russia Economic Forum. He stressed in his speech that the Silk Road Economic Belt construction and the Eurasian Economic Union cooperation will become an important growth source for Russia's future economy. The development of those two strategies will help to strengthen bilateral cooperation in the fields of high-tech, transportation and infrastructure, in particular, promoting the development of the Russian Far-East. Putin also said in his speech, "In May this year, Russia and China signed a Joint Declaration of the Government of The People's Republic of China and the Government of The Russian Federation on The Silk Road Economic Belt and Eurasian Economic Union Construction Cooperation, which has provided new opportunities to promote the integration of Europe and Asia and strengthen mutually beneficial cooperation for countries in the Asia-Pacific region."

IZP Technologies Group president Luo Feng was invited to the event, and as one of the five speakers from Chinese enterprises, he made a speech on the theme of "Cooperation on building a Far-East Freeport Big Data-based Comprehensive Trade Service Platform".

He pointed out combining the excellent geographical location and resources of the Far-East free port with the successful experiences of IZP in the fields of Big Data and cross-border settlement, we are able to jointly build a Far-East Freeport Big Data-based Comprehensive Trade Service Platform, which can improve on the following three sectors:

First of all, the platform can reduce the time spent waiting for going through customs, so as to attract more customers and containers into the Far-East free port. Through the interconnection of data between ports, we are realizing the integration of clearance, pre-clearing and pre-declaration, and reducing time spent on customs import and export by more than a third. That will attract a larger number of goods to the free port, enhancing the competitiveness of the Far-East free port over other ports.

Second, the platform can upgrade the profit model from the past infrastructure services to the infrastructure services + payment and settlement services, increasing the profitability intensively. IZP cooperates with the free port, providing convenient and low cost cross-border payment and settlement services to the owners of cargo. That will reduce the payment cost for the owner. The previous 7.5% commission through VISA channel will be cut down to 4% and at the same time the port can also get a new source of income from this payment channel. We calculate with a channel payment commission of 1%, if the port circulation is $10 billion of goods each year, the income will increase by $100 million.

Finally, through building an import and export commodity development model based on Big Data technology, it is advantageous for the Russian companies to carry on Make to Order and increase export competitiveness. On the other hand, it is also makes the investment promotion and capital introduction more targeted, and brings a suitable industry chain to the Far East free port park for processing and production, exerting tremendous economic effect. Currently, many parks are operating without those abilities, investments on enterprises are not targeted, and products are not competitive, so they can't exert economic effect.

He pointed out that the comprehensive port trade service network is convenient to owners of cargo, so it can improve port competitiveness and profitability. He is also willing to discuss the in-depth cooperation mode with the Far East free port, jointly building a trade and investment platform integrating "port - bonded warehouse - economic zone".

This year's East Russia Economic Forum attracted up to 1,740 foreign business representatives from China, Japan, South Korea and Singapore. After many years hosting St Petersburg International Economic Forums, Russia launched the East Russia Economic Forum for the Far East this year, which has a more definite pertinence and is Russia's actual measure to implement the "Looking East" policy. The purpose is to accelerate the development of the Far East and expand cooperation with Asia-Pacific countries. It is known that 200+ projects with an investment volume worth 70 billion dollars were to be presented at the event.

SOURCE IZP Technologies Group