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Zhengyuan Group opens up the maritime route for the export of urea from China via Huanghua Port. Author/Source: Yangmei Zhengyuan Group. Date: November 8, 2020. Clicks: 42. November 1, 2020 was a good day. With the strong support of the Bohai New Area ** and Huanghua Port Authority, Zhengyuan Group joined forces with Sichuan Beifeng Agricultural Supplies to send the merchant ship \"Mare Spirit\" to the port of Gangaipet in India, loaded with 52,500 tons of urea. The first shipment was dispatched successfully from Huanghua Port, thus establishing a sea transport route for the export of urea from this port in China and providing a logistics channel for the international trade of urea in the Cangzhou region, resulting in significant economic benefits for the enterprises involved. Hebei Zhengyuan Hydrogen Energy Technology Co., Ltd., part of the Zhengyuan Group, is located in the Cangzhou Lingang Economic and Technological Development Zone in the Bohai New Area. It is only 20 kilometers away from Huanghua Port and nearly 100 kilometers from Tianjin Port. The company exports over 400,000 tons of urea each year; therefore, making use of its geographical advantages for sea transportation in order to maximize profits is a top priority in the company’s marketing efforts. As early as during the construction phase of the Zhengyuan Hydrogen Energy project, the Zhengyuan Group began to plan for the sea transportation of urea. Previously, China’s urea was exported via ports such as Yantai and Qinhuangdao. Through the coordination led by the Zhengyuan Group and the efforts of various parties, an export route for urea from Tianjin Port was established in 2014, which helped Tianjin Port gradually become the largest port for urea exports in the country. However, as urea manufacturers such as Hualu Hengsheng and Hebei Dongguang have gathered at Tianjin Port, this has led to congestion at the port during peak shipping periods, competition for space, and difficulties in loading and unloading. As a result, the economic efficiency and shipping efficiency of Zhengyuan Group have been severely constrained. Zhengyuan Hydrogen Energy benefits from its strategic location near Huanghua Dagang, offering unique geographical advantages, yet these advantages are not fully utilized. The reason for choosing to ship from Tianjin Port, despite it being further away, is that since its establishment, Huanghua Port has mainly handled the shipment of goods such as coal and iron powder, which are commonly referred to as \"black goods\"; on one hand, there is no shortage of demand in the market, so the port is very busy ； On the other hand, it lacks the storage capacity, facilities, and loading capabilities necessary for shipping urea, bulk goods, etc. The top leaders of Zhengyuan Group have repeatedly approached the port to coordinate the shipment of urea, but progress has been slow, and this has become a major obstacle since the operation of Zhengyuan Hydrogen Energy began. However, no matter how difficult it was, Zhengyuan never gave up; for several years it kept looking for opportunities and seeking partnerships. Opportunities pass by in the blink of an eye; the key is to know how to seize them and act quickly. Since the outbreak of the global COVID-19 pandemic, the volume of illegal trade at Huanghua Port has declined compared to the previous year, which has provided Zhengyuan with a once-in-a-lifetime opportunity. After receiving positive signals from the port through discussions, Zhengyuan Group promptly established a task force for the shipment of urea from Huanghua Port, headed by the chairman and comprising senior management and relevant departments, with clear responsibilities assigned to each member. Through thorough communication and negotiation with Cangzhou Bohai New Area Continental Bridge International Logistics Co., Ltd., and with the strong support of the park authorities and the port company, a cooperation platform was established among manufacturers, ports, and shipping services. This enabled the smooth export of urea from Huanghua Port, marking a crucial step forward in the maritime export of urea from this port. On one hand, it significantly reduced the distance required for transporting goods to the port, thereby cutting logistics costs; on the other hand, by using bulk shipping, the costs associated with packaging and handling in traditional bagged or ton-pack forms were reduced, improving efficiency and profitability. This also helps to increase the selling price of urea, with an estimated annual benefit of over 10 million yuan. Meanwhile, the Cangzhou Phase II project, which involves the production of 600,000 tons of urea, 400,000 tons of liquid ammonia, and hydrogen energy, and which is currently being carried out in collaboration between Yuanzheng Hydrogen Energy and the China Academy of Launch Vehicle Technology, is also progressing steadily. The establishment of sea transport for urea from Huanghua Port will provide a solid foundation for securing markets for the products produced in Phase II ahead of schedule. The foundation for a company’s survival and development is efficiency. Adhering to the principles of contract-based operations and giving priority to efficiency, Zhengyuan Group keeps track of market trends and follows the market rhythm. It has increased orders for high-value products in India and expanded its presence in the southern markets, making urea sales a key factor in driving profit growth for the company this year. By the end of September, a total of 899,900 tons of urea had been sold, at an average price of 1,639.31 yuan per ton, placing it among the top in the same region and industry. Based on the contractual targets, the average price of urea was set to be 25 yuan/ton lower than that of Hualu Hengsheng; however, from January to September the actual average price was only 1.69 yuan/ton lower than Hualu’s price. Based on sales volume of 899,900 tons, this resulted in an additional revenue of 20.97 million yuan. “The road ahead is long and arduous; I will search high and low. Through the efforts of various parties, sea transportation of urea via Huanghua Port has been made possible, marking a crucial step in this long journey. However, the next challenge is to transform this advantageous geographical location into a competitive advantage for businesses, and to turn Huanghua Port into a key hub for the sea transportation of urea by these companies. This is an issue that the relevant company leaders are carefully considering and studying. At present, urea is being shipped for the first time via Huanghua Port, but the port’s facilities and storage capacity are not yet sufficient to meet the needs of enterprises. There is still a lot of work that needs to be coordinated in areas such as site preparation, loading operations, and road transportation, and many difficulties remain to be overcome.