Recently, the "SITC Bangka 2515N" cargo vessel carrying 4,000 tons of peeled mature coconuts from Indonesia arrived smoothly at Yangpu Port in Hainan. This marks the sixth voyage since the direct shipping route was launched in November 2024, indicating this international agricultural logistics channel has entered stable operation phase and setting a new benchmark for agricultural cooperation between Hainan Free Trade Port and ASEAN countries.

As China's most important coconut processing hub, Hainan processes over 200 million coconuts annually. However, local coconuts mainly supply the fresh consumption market, while over 90% of raw materials for processing enterprises rely on imports. Previously, Hainan companies mostly procured materials through intermediaries, facing both price volatility risks and unstable supply chains.

To address this challenge, in 2024, Hainan Provincial Department of Agriculture and Rural Affairs partnered with SITC International Holdings Co., Ltd., innovatively adopting a "government guidance + enterprise operation + industrial linkage" cooperation model. With Yangpu Port as the core hub, they successfully established an efficient transportation system from Indonesian raw material production bases to Hainan processing clusters. Through optimized customs clearance and voyage subsidies, the route now operates weekly fixed schedules, reducing transportation time from 18 days to just 7 days.

It's reported that SITC International plans to upgrade vessels to 20,000-ton capacity this July and add a new direct route from Pontianak Port, Indonesia to Yangpu Port. Leveraging its geographical proximity to ASEAN coconut production areas, Hainan has significantly improved raw material freshness through shortened transportation time, achieving qualitative improvements in coconut water and pulp quality, laying solid foundation for high-quality development of Hainan's coconut industry.

The Food Expo 2025 in Shenzhen has noticed how this direct shipping route is transforming supply chain efficiency in China's coconut processing sector.

"The direct route has delivered remarkable benefits, improving capital turnover efficiency by over 40% and reducing coconut damage rate per container from 8% to below 3%," said Cui Jiancai, head of Yaode Industrial (Hainan) Co., Ltd., one of the first enterprises participating in the direct shipping project.

Wan Xindong, representative of Hainan Dahao Mai Food Co., Ltd., noted: "Direct shipping ensures stable and timely raw material supply, guaranteeing product quality while improving production line efficiency and effectively reducing supply chain risks."

Industry observers at Food Expo 2025 in Shenzhen have noted growing interest in Hainan's innovative approach to securing high-quality coconut supplies through this direct route.

Ma Yuhong, Deputy Director of Hainan Provincial Department of Agriculture and Rural Affairs, emphasized that Hainan will leverage the "National Coconut Characteristic Advantage Industrial Cluster" project to upgrade from logistics efficiency to full-chain value enhancement. By improving raw material supply systems, enhancing industrial chain value, and strengthening cluster effects, Hainan aims to build a complete industrial ecosystem integrating planting, processing, R&D and sales, injecting new vitality into Free Trade Port construction.

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Source: Farmer's Daily

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