Tianjin Bonded Zone second-largest in the world for aircraft leasing

Tianjin Dongjiang Comprehensive Bonded Zone delivered its 2,000nd aircraft by financial leasing since the first such plane was leased there in 2009. The zone also inked partnership agreements with financial leasing and client companies last week, which are expected to expand portfolios for its financial leasing products and a major surge in its financial leasing assets. The zone did not release the total value of the latest agreements. The area – the largest aircraft financial leasing area for jets and planes in China and the second-largest of its kind in the world in terms of overall asset volume following Ireland – has seen its assets expand from aircraft to vessels and oil exploration platforms, topping CNY1 trillion to date. Yang Liu, Director of the Administrative Committee of the zone, said: “Dongjiang, which saw its tax revenue generated from the financial leasing sector rise 76.2-fold since 2012 to CNY18.4 billion in 2021, is a miniature representative of the recent dynamic decade of China’s fabulous economic transformation and its escalating economic reforms.”

It has released an ambitious target in which it aims to become the world’s leading aircraft financial leasing center, international vessel leasing center as well as international export leasing center by 2025. In the near future, the zone is expected to diversify, focusing more on vessels and oil platforms. In 2021 and the first half of this year, a total of 107 and 76 vessels and platforms were leased out in the zone, up 180% and 68.8%, respectively. By 2025, the number of vessels is expected to reach 1,000, with a total asset value of USD40 billion. In recent years, Dongjiang has completed the leasing of 60 oil platforms worth CNY6 billion to CNY7 billion, said Yu Chaoliang, Vice Director of the Financial Leasing Bureau of the zone.

Li Peng, Vice General Manager of ICBC Financial Leasing Co, said that the price of airline tickets is dropping thanks to airline companies’ reduced costs through financial leasing. Eyeing future growth models, KPMG Partner Yu Ying said: “The international shipping market is confronted with uncertainties with slower efficiency at ports, so Dongjiang should take cautious steps. However, the first quarter this year also saw signs of recovery. Dongjiang is advised to make active efforts to collaborate with shipbuilders for its long-term benefit, the China Daily reports.