CNSC reveals plans to transform image of land border duty free following contract gains

CHINA. China National Service Corporation (CNSC) has revealed further details of its newly won land port duty free contracts at Pingxiang Friendship Pass and Longzhou Shuikou port.

Located in Guangxi, Southern China, the two ports are the key point of political, economical and cultural communication between ASEAN and China, CNSC told The Moodie Davitt Report.

“By relying on our exclusive advantages and resources, CNSC will strive to create a new tax free image of land border stores in China and help promote regional travel retail development,” the travel retailer said.

The ten-year Pingxiang Friendship Pass concession covers a 500sq m duty free departures store and will be effective from the date the agreement is signed. The Pass is 170 kilometres away from Hanoi, the capital of Vietnam and is the largest and most convenient land port from China to Vietnam. In 2019, inbound and outbound passenger flow amounted to 2.55 million, an increase of +18.07% year-on-year.

The ten-year Longzhou Shuikou port concession features a 140sq m duty free departures store. The contract will be effective from the date the agreement is signed. Longzhou Shuikou is the oldest trading port in the Guangxi autonomous region. In 2019, the inbound and outbound passenger flow amounted to 630,000, continuing the sustained growth of recent years.

As revealed, CNSC was also awarded three departures duty free contracts at leading Chinese airports – Nanchang Changbei International, Quanzhou Jinjiang International and Nanjing Lukou International (where, as reported earlier this month, CNSC was named highest bidder).

The Sinopharm-controlled retailer is also preparing to inaugurate its first duty free store in Hainan in December. In September, CNSC also celebrated the Grand Opening of a new-look downtown duty free store in Hangzhou, the capital of China’s Zhejiang province.

The Nanchang Changbei concession features a 178.9sq m duty free store in T1’s International Departure Hall. The five-year contract is effective from the date of contract signing.

Nanchang Changbei Airport, 28k away from the center of the historic city of Nanchang, is Jiangxi Province’s sole international gateway.

Nanchang Changbei Airport served 900,000 international passengers in 2019, a traffic volume that is expected to soar in coming years

CNSC is simultaneously developing a downtown duty free store store in the city. The joint ‘port + downtown’ operational model will be an important addition to the retail offer in the city.

The Nanchang Changbei International Airport Terminal 1 Departure Hall duty free shop area is marked in red

The Quanzhou Jinjiang International Airport concession features a 200sq m duty free store in  theInternational Departure Hall. The eight-year contract is effective from the date of contract signing.

Quanzhou Jinjiang International Airport is located in Quanzhou, Fujian Province, in the southeast coastal area of China. In 2019, the airport served 960,000 international passengers though annual passenger throughput is expected to reach 20 million by 2030.

Because of Quanzhou’s importance in terms of geographical location and the economic development of Fujian Province, winning the airport duty free contract is a key step in CNSC’s strategic development, the retailer said.

Quanzhou is the economic hub of Fujian Province, and the starting point of the Maritime Silk Road, a UNESCO-recognised integral component of China’s Belt and Road Initiative to connect China with the rest of Asia, Africa and Europe.

The contract represents an expansion of CNSC’s duty free footprint into China’s key southeast coastal areas.

Nanjing Lukou Airport, 35.8 kilometres away from the centre of Nanjing, is the gateway between Jiangsu Province and Nanjing City. The airport is a large-scale national and regional hub, China’s air cargo centre and express delivery centre.

As reported, the Nanjing Lukou Airport concession covers a 1,500sq m duty free store in T2’s International Departure Hall. The guaranteed annual rent is CNY55.35 million (US$8.37 million) or a 28.44% monthly commission on sales, whichever is highest. The eight-year contract becomes effective from the date of contract signing.

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