Harbor, Chinese Port in Accord

The Port of Hueneme, the nation’s chief gateway for citrus exports, has signed its first agreement with a Chinese port, a move officials say could boost Ventura County’s $1-billion agriculture industry--with an emphasis on citrus.

The Oxnard Harbor District, which operates the port, announced a “friendly exchange” agreement with the Port of Qinhuangdao on Thursday, days after harbor district officials returned from a diplomatic mission to China.

Like other U.S. businesses, Ventura County’s commercial port has been eager to take advantage of China’s acceptance into the World Trade Organization late last year, which means drastic reductions on tariffs and bans being lifted on agricultural products.

The sister port agreement requires formal approval by the Chinese government, expected by midsummer. A delegation from China is scheduled to visit the Port of Hueneme next month.

The tentative agreement calls for the two ports to exchange market research and technology. While it does not include specific purchase arrangements between the Chinese port and local growers, Port of Hueneme officials said they hope to export fruit to Qinhuangdao by the end of next year. Goods, they said, would flow mostly from Port Hueneme to China, not the other way.

“This agreement is an important first step toward trade with China from the Port of Hueneme,” Harbor Commissioner Jess Herrera said. “It’s a tremendous opportunity for us.”

Coal is the chief export of Qinhuangdao, which is 200 miles east of Beijing. Qinhuangdao officials said their city is the entry point for 60% of northern China’s bananas and that they want to purchase refrigeration sheds similar to the ones at the Port of Hueneme to accommodate more shipments of perishable items.

Sunkist already exports some citrus to Hong Kong and to mainland China, but not directly to the region served by the Qinhuangdao port, officials said. Sunkist officials could not be reached Thursday for comment.

Strawberries are considered too perishable for export. Avocados are so unusual in Qinhuangdao that none of the port officials that met with the Oxnard delegation had ever eaten one, said Port of Hueneme marketing director Will Berg.

Officials said it was too soon to estimate how much money the agreement with Qinhuangdao might yield for the Port of Hueneme or its customers. Last year, the Port of Hueneme--one of California’s smallest commercial ports--reported gross revenues of $8.3 million, mostly from handling $4 billion worth of imports, including automobiles and Del Monte bananas.

Citrus exports represented $400,000 of port revenues last year. Sunkist exports 250,000 boxes of citrus to Japan each week through the port. Port officials said they expected the market for northern China would eventually be larger than that.

“They have a burgeoning middle-class population that is willing to pay premium prices for first-class fruit,” Bob Pinkerton, a Santa Paula lemon grower, said of China. “If this opens up another port of entry there, we surely welcome that.”