According to the unified deployment of the Municipal Party Committee, from December 8, 2020, to January 31, 2021, the Sixth Inspection Team conducted an inspection of Dalian Huanghai Port & Shipping Co., Ltd. On April 30, the Inspection Team provided feedback on the inspection findings to the Party Branch of Dalian Huanghai Port & Shipping Co., Ltd. In accordance with the principle of openness in Party affairs and relevant requirements for inspection work, we are now making public the status of rectification measures taken in response to the inspection.

  1  

There is a lack of in-depth exchanges and discussions on studying and implementing Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the spirit of the 19th National Congress of the Communist Party of China, as well as issues such as the singularity of learning formats.

To address issues such as the monotonous nature of learning formats, our company has organized a wide variety of Party-related activities, including jointly conducting themed Party Day events with Zhuanghe Customs, holding a mobilization conference for Party history education, launching a theoretical study and reading class on “Building a Book-Driven Branch and Serving Revitalization and Development,” organizing all Party members to visit and learn at the Dandong Memorial Hall of the War to Resist U.S. Aggression and Aid Korea, and arranging for company Party members to visit the site where the Eighth Route Army landed in Northeast China in Dalayao Community to revisit and relive historical events. Through these diverse activities, we have further intensified learning among Party members, deepened exchanges among them, and enhanced the ideological awareness of Party cadres and members.

Rectification status: Rectification completed.

  2  

Regarding the issue that there are insufficient methods for integrating the spirit of General Secretary Xi Jinping’s series of important speeches on the revitalization and development of Northeast China and Liaoning Province with the company’s actual work, thereby failing to effectively guide the company’s innovative development.

Our company formulated the “Work Plan for the Three Meetings, One Class, and Thematic Party Day Activities” of Dalian Huanghai Port & Shipping Co., Ltd. on February 7, 2021, and the “2021 Annual Work Plan for Party Building of Dalian Huanghai Port & Shipping Co., Ltd.” on February 19, 2021. We also developed quarterly study-and-education plans under the “Two Studies and One Action” initiative. By developing these plans and conducting theoretical study, we aim to foster a spirit of innovation and uphold the integration of theory with practice.

Rectification status: Rectification completed.

  3  

Regarding the leading team’s implementation of the thematic education campaign “Staying True to Our Original Aspiration and Keeping Our Mission Firmly in Mind,” there were issues such as failing to widely solicit opinions as required by the “Implementation Plan of the Zhuanghe Municipal Committee of the CPC on Carrying Out the Thematic Education Campaign ‘Staying True to Our Original Aspiration and Keeping Our Mission Firmly in Mind,’” failing to conduct heart-to-heart talks, and lacking sufficient candor in criticism and self-criticism.

Our company has carried out thematic education and heart-to-heart talks strictly in accordance with the requirements of the implementation plan for thematic education as well as the system of individual conversations. Specifically, on December 4, 2019, we held heart-to-heart talks with six employees of the company; on October 10, 2019, we distributed questionnaires to solicit public opinions, collecting 11 issues and 14 suggestions and comments. At the special democratic life meeting held on January 25, 2021, we urged the leading team, during the criticism and self-criticism sessions, to reject the “nice guy” mentality and engage in serious and earnest criticism and self-criticism. As of January 31, 2021, all the issues identified at the thematic education democratic life meeting have been fully addressed and rectified.

Rectification status: Rectification completed.

  4  

Regarding the slow implementation of the municipal government’s decisions and the failure to expand the opening-up of Zhuanghe Port and enhance its overall competitiveness in accordance with the municipal government’s 2020 work plan.

Our company began preparations in 2019 for the opening of newly constructed berths within the Zhuanghe Port’s port area to foreign trade, and invested heavily in upgrading, renovating, and constructing new infrastructure and supporting facilities for port supervision. These efforts included concrete pouring works in the port area, installation of dust-control nets, construction of customs technical buildings, upgrading of the information management system, enhancement of network coverage, and establishment of centralized disinfection warehouses to ensure cold-chain epidemic prevention and control. After two years of preparation, on December 16, 2021, Zhuanghe Port successfully passed the acceptance inspection for the newly built berths organized by the provincial and municipal port authorities and port joint inspection units. Furthermore, on December 29, 2021, the company received approval from the People’s Government of Liaoning Province for the commissioning of the newly constructed foreign-trade berths at Zhuanghe Port. These developments have laid a solid foundation for increasing Zhuanghe Port’s annual cargo throughput to meet target levels and for boosting economic development in the hinterland of Zhuanghe City.

Rectification status: Further rectification is required.

  5  

Regarding the slow progress in taking over and liquidating the Zhuanghe Port.

In April 2021, our company reached a consensus with Liaoning Port Group on the issue of compensation and indemnification related to our withdrawal from the operation of Zhuanghe Port. In July 2021, the agreement was submitted to and approved by the Standing Committee Meeting of the Municipal Government and the Meeting of the Municipal Party Committee’s Standing Committee. The two parties signed a withdrawal agreement, and the original operator of Zhuanghe Port has completed its business deregistration.

Rectification status: Rectification completed.

 6  

Regarding the Zhuanghe Port freight yard, most of the sand and gravel materials and mineral powders have not been covered, causing varying degrees of pollution to the surrounding environment.

In May 2021, our company invested over 20,000 yuan to purchase additional dust-control nets and fully cover bulk powdered goods stored in the yard. At the same time, we formulated and issued the “Quality Assessment and Management Regulations for Cargo Handling and Miscellaneous Operations at Zhuanghe New Port Terminal Co., Ltd.,” requiring that all bulk cargo vehicles must be properly covered before entering the port area, thereby minimizing environmental pollution in the surrounding area to the greatest extent possible.

Rectification status: Rectification completed.

  7  

Regarding the issue that, since taking over the port, no ledger has been established for the disposal of hazardous waste materials, and no discharge permit has been obtained.

Our company established a ledger for the disposal of hazardous waste materials in January 2021, clearly defining the disposal methods for waste oil. At the same time, we entrusted Dalian Shengfei Petrochemical Co., Ltd. with the transportation of such waste. In June 2021, we submitted the required documentation to the Zhuanghe Municipal Environmental Protection Bureau to apply for a pollution discharge permit and obtained the permit in September.

Rectification status: Rectification completed.

  8  

The practice of working without proper certification still persists. Four staff members in the company’s safety supervision department are working without the required certifications. As of December 2020, the company had not yet obtained certification for standardized production or management systems, nor had it acquired a port facility security certificate.

Since March 2021, our company has organized its employees to take the examination for safety management personnel. As of now, 12 employees have obtained safety management certificates. On September 22, 2021, we successfully passed the certification for production standardization and management systems. On August 11, 2021, we received the Port Facility Security Certificate.

Rectification status: Rectification completed.

  9  

Regarding the issues at Zhuanghe Port, such as fishing vessels illegally docking and crew members freely boarding and disembarking to transport supplies, which pose safety risks to production operations at Zhuanghe Port.

First, strengthen communication with law enforcement agencies such as the fisheries department and the coast guard, keep communication channels open, and intensify inspections of fishing vessels in anchorages, approach channels, and harbor basins. Prohibit crew members from arbitrarily boarding or disembarking vessels to transport supplies or engage in similar activities.

Second, we will strengthen training on operational standards for on-site personnel handling cargo such as round steel and irregularly shaped granite. We will organize pre-ship meetings to clearly communicate safety precautions, standardize operating procedures, intensify supervision, and eliminate safety hazards to the greatest extent possible.

Rectification status: Rectification completed.

 10 

The progress of the special bond project has been slow. In April 2020, the company decided to tender the second-phase cold storage project using the EPC model; however, it wasn't until October 2020 that the tendering process for this project was completed. As a result, construction started late and the project's progress has fallen behind, failing to meet the schedule requirements set forth by the special bond project.

First, we have scientifically formulated the project schedule and conduct daily supervision and inspection based on the project’s progress to ensure that the construction schedule is effectively implemented. Second, we have reasonably increased nighttime construction activities to shorten the project duration and guarantee compliance with the specific bond-funded project’s requirements for construction progress. As of now, 134 million yuan has been utilized, representing a fund utilization rate of 70%, which meets the requirements set by higher authorities.

Rectification status: Rectification completed.

 11 

Regarding the issue of delayed removal of illegal aquaculture activities in anchorage areas.

Our company has actively strengthened communication with law enforcement authorities and issued three notices—on December 2020, January 7, and March 8, 2021—announcing the removal of illegal floating rafts within the adjusted navigation channel and anchorage areas of Zhuanghe Port. These notices required illegal aquaculture operators to dismantle their facilities within a specified deadline. At the same time, recognizing that our company lacks enforcement powers, we promptly sought guidance from the Zhuanghe Municipal Government, the Municipal Bureau of Natural Resources, and the Municipal Administration for Fisheries, Fishermen, and Fishing Vessels, requesting that the relevant administrative and law enforcement agencies carry out the dismantling. As a result, the removal of illegal aquaculture in the anchorage area was completed by September 2021. After the removal work was finished, our company arranged for patrol vessels to step up daily monitoring of the anchorage area, ensuring that no illegal aquaculture activities take place there anymore.

Rectification status: Rectification completed.

 12 

Regarding issues such as inadequate passenger transport services, low quality of passenger transport services, the lack of an online reporting platform, and untimely publication of fare standards.

On April 15, 2021, our company organized a meeting for staff at the passenger transport station, with the theme “Smile Service.” During the meeting, we conducted study sessions, education, and reflection on complaint cases. All staff members were urged to take these incidents as a lesson, improve service quality, and enhance their service awareness. In addition, we posted fee schedule signs in prominent locations at the passenger transport station and set up a suggestion box at the Lei Feng Service Desk in the station to widely solicit passenger feedback and further strengthen employees’ service consciousness. To provide greater convenience for travelers, we have been actively communicating and collaborating with various organizations, including Ctrip and WeChat ticketing platforms, to promote the implementation of online ticketing services. Due to the impact of the pandemic, on-site inspections have been postponed, but this project is currently under active development.

Rectification status: Rectification completed.

 13 

The level of informationization in cargo yard management is insufficient, causing inconvenience to customers. The loading and unloading of goods at terminal berths are not well coordinated with downstream transportation and storage operations, and there is no systematic information management in place. As a result, port congestion and cargo backlogs frequently occur, causing certain economic losses to shipping companies, shippers, and consignees.

In January 2021, our company commissioned Dalian Shengchuang Technology Co., Ltd. to develop a port production and operation system tailored to our company’s actual needs. In December 2021, we completed internal debugging and simultaneously began pilot operations. Once the new system is fully operational, it will significantly enhance the information management level of the Zhuanghe Port cargo yard and bring great convenience to our customers.

Rectification status: Rectification completed.

 14 

Regarding the aging of the dock’s lift bridge and its failure to meet public needs, among other issues.

To ensure safe production, our company conducted a comprehensive overhaul of the lift bridge in May 2021, reinforcing both the base and the deck of the lift bridge. At the same time, we initiated preparatory work, including feasibility studies, for the renovation project of Berth No. 101 and submitted these plans to the Dalian Municipal Transportation Bureau in an effort to secure subsidy funding for replacing the lift bridge. Currently, however, the funding has not yet been secured. In September 2021, we carried out another round of reinforcement and renovation on the existing lift bridge to further ensure the safety of passengers and vehicles entering and leaving the port. Meanwhile, we are accelerating the completion and acceptance procedures for the passenger roll-on/roll-off terminal project, aiming to put it into operation as soon as possible and begin using the new lift bridge.

 15 

Since the company was designated as a municipally-owned state-owned enterprise in August 2017, it has failed to follow the recruitment procedures typically used by state-owned enterprises when selecting and hiring personnel. As a result, the company lacks specialized technical talent, operational staff, and managerial professionals, which has adversely affected the efficiency of port production operations.

To standardize management and plug loopholes, our company has revised the “Personnel Management System of Dalian Huanghai Port & Shipping Co., Ltd.” and formulated and issued the “Compensation Management System of Dalian Huanghai Port & Shipping Co., Ltd.,” thereby formalizing recruitment procedures through these systems.

Rectification status: Rectification completed.

 16 

Regarding the leadership team, there has been a failure to ensure that Party building work and business operations are subject to the same requirements, planned together, implemented synchronously, and evaluated jointly—resulting in an overemphasis on business activities at the expense of Party building. On August 14, 2017, the company was designated as a municipally-owned state-owned enterprise; it wasn't until July 2019, following rectifications identified during the provincial Party committee’s inspection, that the Party branch was formally established.

In May 2021, our company held a branch committee meeting to specifically study the work of building the company’s Party organization, formulated a study plan, strengthened the system for political theory learning among the leadership team, enhanced the leadership team’s political and theoretical competence, and shifted the leadership team’s mindset from prioritizing business over Party building. This approach ensured that the leadership team recognized the importance of Party building within the company right from the source of their thinking.

Rectification status: Rectification completed.

 17 

Regarding the resignation and transfer of Comrade Wang Wen, a member of the branch committee, the position of branch committee member has become vacant. As of the end of December 2020, no by-election has yet been held to fill this vacancy.

On March 16, 2021, our company held a by-election meeting for the Party Branch Committee of Dalian Huanghai Port & Shipping Co., Ltd. The meeting elected Qu Yandong, Chen Renqiang, and Zhang Guotao as members of the Party Branch Committee of Dalian Huanghai Port & Shipping Co., Ltd., thereby completing the by-election process for the branch committee.

Rectification status: Rectification completed.

 18 

There are gaps in the implementation of the “Three Meetings and One Class” system. In 2019, the branch committee meetings were held six times fewer than required; in 2020, they were held five times fewer. Additionally, there was one less Party class than scheduled. Since the establishment of the Party branch, no organizational life meetings have been held, nor has any democratic evaluation of Party members been conducted.

Our company strictly implements the “Three Meetings and One Class” system in accordance with the provisions of documents such as the “Regulations on the Work of Party Branches of the Communist Party of China.” In 2021, we held 12 branch committee meetings, 17 general party member meetings, 11 sessions of theoretical study, 13 Party Day activities, 4 centralized Party classes, 2 democratic life meetings, and 2 organizational life meetings. In 2021, our party branch was recognized by the Organizational Work Committee of the government organs as a standardized and normalized party branch.

Rectification status: Rectification completed.

 19 

Regarding the issue that, as of the end of December 2020, the company had not yet established a trade union organization.

In January 2021, our company applied to the Zhuanghe City Federation of Trade Unions to establish a trade union organization, and on February 18, the Trade Union Committee of Dalian Huanghai Port & Shipping Co., Ltd. was officially established.

Rectification status: Rectification completed.

 20 

Since 2016, the company’s leadership team has not listened to reports from its members and the Party organizations of its subsidiaries on their fulfillment of principal responsibilities. No special meetings have been held to study work related to Party conduct and integrity, and no measures have been taken to break down tasks for Party conduct and integrity building and assign them to specific individuals.

Starting in 2021, company leadership team members are required to report annually to the Party branch on their fulfillment of principal responsibility. At the same time, taking advantage of the annual campaign for integrity and anti-corruption publicity and education, we hold special meetings to study and advance integrity and anti-corruption efforts, and we break down specific tasks related to integrity and anti-corruption into clear responsibilities assigned to individual staff members, ensuring that each task is effectively implemented.

Rectification status: Rectification completed.

 21 

Every year, only the chairman submits a report on performance and integrity; other members of the leadership team do not submit such reports. Upon reviewing the annual summaries and performance/integrity reports of the leadership team, we found no mention whatsoever of the “dual responsibility” principle.

Starting in 2020, the meeting has mandated that all members of the company’s leadership team submit reports on their job performance and integrity, and has also required detailed explanations regarding their “dual responsibilities” for each position.

Rectification status: Rectification completed.

 22 

From 2016 to 2017, no discipline inspection and supervision body was established. From 2018 to 2019, one leader was appointed to oversee discipline inspection work, concurrently serving as the company’s chief financial officer. However, the supervisory role was not effectively implemented; proactive efforts to address issues early and at their initial stages were lacking. The practice of having frank discussions and openly addressing problems—such as “red faces and sweating” or gently reprimanding colleagues by pulling on their sleeves—had not yet become routine. Furthermore, no talks or reminders were conducted with Party members and cadres.

On April 30, 2021, our company held a branch committee meeting and appointed Comrade Zhang Guotao as the discipline inspection committee member of Dalian Huanghai Port & Shipping Co., Ltd., responsible for overseeing discipline inspection work. We also conduct annual talks and reminders with Party members and cadres as required.

Rectification status: Rectification completed.

We welcome all cadres and the public to supervise the implementation of rectifications identified during the inspection. If you have any comments or suggestions, please feel free to share them with us promptly. Contact information: Tel. 89379912; Mailing address: No. 288, Lingang Industrial Park, Dalian Emerging Industry Economic Zone, Zhuanghe City.

Dalian Huanghai Port & Shipping Co., Ltd.

February 23, 2021