On the morning of November 30, 2024, the first direct shipping vessel loaded with MHP (Crude Nickel Hydroxide, Intermediate Product of Nickel Hydrometallurgy) produced by GEM’s industrial park in Indonesia successfully arrived at the Yangluo Port Zone A in Wuhan. This milestone marks the successful launch of the direct shipping route between Labota Port (Indonesia) and Yangluo Port (Wuhan)!

Attendees of the opening ceremony include: Zhang Junyong, Member of the Standing Committee of the Wuhan Municipal Party Committee and Secretary of the Party Working Committee of the Wuhan Changjiang New Area; Zhao Lihong, Director of the Changjiang New Area Management Committee; Li Xiaoming, Deputy Party Secretary and General Manager of Hubei Port Group Co., Ltd.; Chen Huarong, Member of the Party Leadership Group and Deputy Director of Department of Commerce of Hubei Province; Wang Wei, Party Secretary and Director of the Hubei Provincial Department of Port and Navigation Development Center of the Hubei Provincial Department of Transportation; Professor Xu Kaihua, Chairman of the GEM Group, and Wang Min, Joint Ultimate Controller and Director of GEM Group. They witnessed the historic moment of the inaugural direct shipping route.

Over 100 guests, including representatives from the Hubei Provincial Party Committee, Provincial Government, Provincial Departments; Wuhan Customs, Wuhan Maritime authorities, Wuhan Border Inspection Station; Wuhan Municipal Party Committee, Municipal Government, and Municipal Departments; Wuhan Changjiang New Area; Jingmen Municipal Party Committee, Municipal Government, and Municipal Departments; GEM's business partners, and news media, attended the event to witness this historic occasion.

Direct Shipping Route Between Labota Port in Indonesia and Yangluo Port in Wuhan Successfully Launched

Direct Shipping Route Between Labota Port (Indonesia) and Yangluo Port arrived at Yangluo Port Zone A in Wuhan

The direct shipping route from Labota Port in Indonesia to Yangluo Port in Wuhan is the first international breakbulk liner service in the central Changjiang region of Hubei Province. After the launch of the route, products from GEM Industrial Park of Indonesia can be transported directly to Wuhan without transshipment, opening a fast lane for Hubei to connect with critical nickel resources for the new energy sector. This will significantly reduce logistics costs for enterprises and enhance industry competitiveness. This is a vivid example of Hubei Province supporting enterprises in expanding overseas, opening a gateway for the international development of Hubei businesses and creating a high-speed channel for the province's outward-oriented economic growth. It brings new opportunities for Hubei enterprises to expand overseas and further demonstrates the province’s favorable investment environment.

Since 2018, GEM has expanded into Indonesia, becoming the first Chinese new energy company to invest in and establish a world-class "Technology + Intelligence + Green" nickel resource high-tech industrial park on the island of Central Sulawesi, Indonesia. Currently, the park’s nickel resource HPAL (High Pressure Acid Leach) has reached an annual production capacity of 150,000 tons. In addition, GEM has invested in Indonesia to build the world’s first nickel resource museum, the country’s first laterite nickel ore hydrometallurgical engineering center, and the first China-Indonesia Joint Research Laboratory in Bandung. It has also launched the "Hundreds, Thousands and Tens of Thousands" Talent Training Program, allowing Chinese technology to benefit the Indonesian people, foster cultural integration, and grow together with Indonesia. On November 10, 2024, under the witness of Indonesian President Prabowo, GEM signed a project agreement with PT Vale Indonesia to invest $1.42 billion in the joint construction of a green nickel resource HPAL industrial park. GEM has become an outstanding representative of Chinese enterprises expanding into Indonesia and a successful example of Chushang's (Hubei merchants’) motto "Step Out with The Waves, and Return Better".

The MHP produced at GEM Industrial Park in Indonesia is one of the key raw materials for producing ternary precursors for new energy power battery materials. Over the past five years, GEM has been unable to transport MHP directly to Hubei from Indonesia. Instead, the MHP was shipped by sea from Labota Port in Indonesia to Huangpu Port in Guangzhou or Lianyungang Port in Jiangsu, and then transferred by land to Hubei. The need for customs declaration, inspection, and receipt at different locations resulted in long transportation times and high logistics costs. Compared to other domestic companies that benefit from port transportation advantages, GEM faced increased logistics costs, which reduced its global competitiveness.

To unimpeded flow of key factors and enhance competitiveness, in May 2024, GEM submitted a request to the Hubei provincial government to open a direct sea-river round-trip service from Labota Port in Indonesia to Yangluo Port in Wuhan, adopting a sea-river intermodal "point-to-point" and "one-ship all the way" transportation model. Upon receiving the company's request, various departments at all levels responded quickly, conducting a special study on the direct shipping route between Labota Port and Yangluo Port, working tirelessly to help the company solve the problem, and pushing for the smooth implementation of the direct shipping line. With strong support and cooperation from the relevant departments, the direct shipping route was officially approved on September 30.

From the planning to the realization of the direct shipping route, it took only four months, creating an "acceleration" in the launch of overseas direct shipping routes. This established a new transportation model with a "point-to-point" and "one-ship all the way" service from Indonesia to Wuhan, eliminating the need for transshipment at out-of-province ports and inter-provincial road transportation. The international direct route from Indonesia to Wuhan not only reduced logistics costs but also significantly improved customs clearance and logistics efficiency, enhancing the company's profitability. It will also strengthen the competitiveness of Hubei’s green industries, support local private enterprises in better participating in global cooperation, and set a new example for the flourishing development of Hubei's outward-oriented economy.

At the inauguration ceremony, Professor Xu Kaihua, Chairman of GEM Group, delivered a speech, stating that the maiden voyage of the direct shipping route marks the direct connection between Indonesia and Wuhan, a monumental achievement in the cooperation between Hubei and Indonesia. Connecting the global new energy hub port-Labota Port in Indonesia with Yangluo Port in Wuhan establishes a fast lane linking Hubei to critical nickel resources for the new energy sector. This initiative opens a gateway for Hubei enterprises to expand internationally and creates a high-speed channel for the development of Hubei’s outward-oriented economy, providing new opportunities for local businesses venturing abroad.

The direct route not only marks the first arrival in Wuhan of Category 9 hazardous chemical MHP transported as bulk cargo in ton bags but also pioneers a new "point-to-point" and "one-ship all the way" transportation model. This innovation reduces logistics costs, significantly improves customs clearance and logistics efficiency, and exemplifies the Chushang spirit of "Step Out with The Waves, and Return Better".

Professor Xu expressed his gratitude to the Hubei Provincial Party Committee and Provincial Government, Provincial Departments; Hubei Port Group; Wuhan Customs, Wuhan Maritime authorities, Wuhan Border Inspection Station; Wuhan Municipal Party Committee, Municipal Government, and Municipal Departments; Wuhan Changjiang New Area; Jingmen Municipal Party Committee, Municipal Government, and Municipal Departments;; and GEM's business partners for their collaborative efforts. He remarked that, through joint efforts to overcome challenges, break conventions, and innovate methods, the Indonesia-Wuhan direct route was successfully established, showcasing Hubei's commitment to supporting enterprise development and highlighting the province’s unparalleled investment environment.

He concluded with optimism about GEM's investments in Hubei, pledging to continue advancing the development of Hubei, Wuhan, and Jingmen, riding the waves, forging ahead, and standing at the forefront of progress!

Professor Xu Kaihua, Chairman of GEM Group, delivered a speech

Li Xiaoming, Deputy Party Secretary and General Manager of Hubei Port Group Co., Ltd., delivered a speech, stating that the launch of the direct shipping route between Indonesia and Hubei has established a new "one-ship all the way" transportation model, significantly reducing bilateral logistics costs and deepening economic and trade cooperation between Hubei, Indonesia, and the central-western regions of China.

He emphasized that GEM, a global leader in resource recycling, chose Yangluo Port as the hub for its direct shipping route, demonstrating its trust in Hubei Port Group. The group will continue to enhance its management and service quality, expand its service capabilities, and provide GEM with top-tier and efficient logistics services. Yangluo Port will leverage its role as a core hub in Hubei's logistics supply chain system, contributing to the establishment of a world-class green industrial cluster across the province.

Li Xiaoming, Deputy Party Secretary and General Manager of Hubei Port Group Co., Ltd., delivered a speech

Wang Wei, Party Secretary and Director of the Hubei Provincial Department of Port and Navigation Development Center of the Hubei Provincial Department of Transportation, delivered a speech, stating that Hubei, located at a strategic crossroads, relies on Yangluo Port as a critical support hub. The launch of the direct shipping route has broken through traditional logistics bottlenecks by establishing a new "point-to-point" and "one-ship all the way" transportation model, saving time and reducing costs while improving efficiency. This innovation injects strong momentum into trade exchanges, industrial development, and regional revitalization, enhancing Hubei's competitiveness in the global industrial and supply chain.

He emphasized that the "Labota Port, Indonesia—Yangluo Port, Wuhan" direct shipping route will become a vital bridge connecting Hubei to the world. In the future, the Department of Transportation of Hubei Province will advance comprehensive reforms and high-level opening-up, fully leveraging the role of port and shipping enterprises to promote the high-quality development of waterway transportation in Hubei.

Wang Wei, Party Secretary and Director of the Hubei Provincial Department of Port and Navigation Development Center of the Hubei Provincial Department of Transportation, delivered a speech

Chen Huarong, Member of the Party Leadership Group and Deputy Director of Department of Commerce of Hubei Province, delivered a speech, stating that GEM, as an outstanding representative of Hubei’s new energy industry, its cooperation with Yangluo Port, the largest container terminal in the middle and upper reaches of the Yangtze River, demonstrates the excellence of Hubei's private enterprises and the rise of new inland hubs for open development. The launch of this direct shipping route marks a new step for Hubei in the deep integration of the Yangtze River Golden Waterway and the green circular economy.

The Provincial Department of Commerce will continue to enhance the facilitation of cross-border trade and provide strong support for enterprises going global. At the same time, it will also support Hubei enterprises in strengthening trade and investment cooperation with Indonesia, jointly contributing to the high-quality development of Hubei.

Chen Huarong, Member of the Party Leadership Group and Deputy Director of Department of Commerce of Hubei Province, delivered a speech

With the leaders attending the event jointly pushing the start button, they infused vibrant momentum into the "Labota Port, Indonesia—Yangluo Port, Wuhan" direct shipping route.

The inauguration ceremony of the maiden voyage of the "Labota Port, Indonesia—Yangluo Port, Wuhan" direct shipping route.

The successful launch of the "Labota Port, Indonesia—Yangluo Port, Wuhan" direct shipping route is a significant achievement in Hubei-Indonesia cooperation, bringing new opportunities for Hubei enterprises to expand abroad. This serves as an opportunity to help GEM achieve a new round of global development, enhancing the competitiveness of China’s new energy industry globally through the domestic and international dual circulation strategy. It will also contribute to advancing higher-level and more comprehensive cooperation between China and Indonesia, driven by the dynamic efforts of Hubei and GEM. Zhou Bo, Director and Executive Vice General Manager of GEM Group, Lu Xijin, Chairman of the Supervisory Board, Zhang Yuping, Vice General Manager, and Pan Hua, Vice General Manager and Board Secretary of the Group, attended the event.