Wuhan Yangluo Container Port (Multi Company w/9178)

completed

Environmental Review Summary (ERS)Project Name CHINA: WUHAN INTERNATIONAL CONTAINERTRANSHIPMENT CENTER (WIT)Region AsiaSector InfrastructureProject No. 008422 April 27, 19981. The city of Wuhan, which is the seventh largest city in China, is located in Hubei province in central China along the Yangtze River. The project consists of the construction and operation of an inland modern container port and transshipment facility in Wuhan. It will be capable of receiving cargo and containers from Wuhan and Hubei province, from cities upriver, such as Chongqing, from ports at the mouth of the Yangtze, such as Nanjing and Shanghai, and eventually directly from international ports. The site is well supported by road and rail infrastructure, and a rail spur directly into the port area is envisaged in the future.2. The project sponsor is Wuhan International Container Transshipment Company Limited (WIT), a joint venture between CIG Port Holdings Limited, the ports subsidiary of the Hong Kong-based China Infrastructure Group, Wuhan Yangluo Development Company Limited and the Wuhan Harbor Administrative Bureau, both agencies of the Wuhan Municipal Government. The project, which is expected to begin operations in late 2000, is the first stage of a long-term development plan by the sponsor for a modern container transshipment and general cargo port facility. The second phase consists of an expansion of container handling capacity as well as the introduction of a container freight station and significant warehousing capacity. 3. The design of the port consists of a single berth approximately 260 meters long, which is adequate for handling vessels of up to 10,000 DWT. The supporting area of the berth is approximately 5.7 ha. Major construction work will consist of leveling of land behind the existing floodwall, building of offices and warehouse space, and a stacking yard. Equipment to be purchased includes one or two gantry cranes for the berth, a rubber-tired gantry crane for the yard, a mobile crane or reach stacker, and trucks and chassis to transport the containers.4. This is a category B project according to IFC’s environmental review procedure because specific impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental information submitted by the project sponsor, and the technical appraisal and site review completed by IFC’s Technical and Environment Department staff. The following potential environmental, health and safety impacts of the project were analyzed:· land use conversion and compensation;· dredging impacts;· liquid effluents and storm water management;· flood protection;· management of solid wastes;· handling of dangerous cargoes;· fire and spill protection and emergency response; and· employee safety and training.The sponsor has presented plans to address these issues and demonstrated the proposed project will comply with applicable governmental and World Bank requirements. The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.5. Development of the Project will require 85 MOU (approximately 5.7 ha) of land, and an additional 175 MOU (11.7 ha) is expected be used to complete the second stage of the first development phase. Land use conversion for the first phase of the project caused the economic dislocation of three industries (fish cultivation, brick making and pulp making), with 237 employees (as of June 1996). Currently, there are no dwellers or economic activity on the land. The Yangluo township government (under the Wuhan Municipal government) provided compensation to the three industries and re-employment opportunities to all the Project Affected People (PAPs). Of the PAPs, 207 accepted employment at three nearby industries, while 30 people opted to retire or resign and received retirement or resignation benefits from the appropriate government agency. These measures, as well as the consultation process used to consult with PAPs, comply with the policies and requirements of the World Bank.6. The Yangtze River Channel Navigation Administration has general responsibility for river dredging and navigation aids on the Yangtze river, but WIT will be responsible for construction and maintenance dredging at the Project site. At the project site, the underlying rock bed and the site’s position in the river bend both ensure a secure shoreline. The river is maintained with a draft of at least 4 meters up to Wuhan. 7. Construction storm water runoff will be controlled to minimize erosion and silt transport to adjacent properties. During operation, liquid effluents will mainly include domestic sewage from the approximately 240 staff, rinse water from cleaning machinery and equipment, and rinse water from cleaning empty containers. These effluents will be collected and treated onsite in a secondary biochemical treatment plant to meet local requirements and World Bank guidelines. During operations storm water runoff will be collected and passed through an oil/water separator. Some vessels will also discharge bilge water, following on board treatment by the oil/water separator. The oil content of this water is expected to be about 1 mg/l, below the World Bank guideline of 10 mg/l. 8. The site is currently at elevation 21 to 23 meters, and will be leveled with 30,000 m3 of earth fill. The site is protected from river flooding by a floodwall that has a crest elevation of 28.5 meters. The floodwall will be raised above the highest flood stage of the river. Floodgates will be built into the floodwall to allow level access between the berth and stacking area. 9. The project will generate a variety of solid wastes including packaging materials from cargoes and about 120 tons per year of domestic solid wastes. These materials will be recycled where practical, with the remainder disposed of in accordance with local requirements.10. Cargoes handled by the port and transported in containers consist mostly of textiles, light industrial products, electrical & machinery products, and food products. WIT is forbidden by law to handle dangerous cargoes. 11. CIG is expected to engage an internationally experienced port operator for WIT. CIG and its port operator will develop fire and spill protection and emergency response and safety and training programs, acceptable to IFC, prior to commencing construction.12. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of China requirements, and World Bank policies, and environmental, health and safety guidelines.13. IFC will monitor WIT’s ongoing compliance with World Bank policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.