China’s energy export machine keeps project cargo flowing

China’s position at the heart of the global project logistics market remains firmly intact, supported by booming renewable energy exports, large-scale infrastructure investment and the continued expansion of Belt and Road projects. The country continues to dominate the manufacture of critical project equipment, reinforcing its role as a leading source of heavy lift and oversized cargo for energy and industrial developments worldwide. Mike Bryant reports.

The energy sector remains a core industry vertical for the project logistics supply chain in China. Churchill Liu, managing director of Trans Global Projects (TGP) China, said this includes large transformers, reactors, turbines, wind components and other high value engineered units, with the country a major manufacturing base for offshore wind, energy storage and wider grid infrastructure projects. Much of the equipment is destined for projects overseas, he added.

“This is particularly evident in renewable energy developments across Southeast Asia and other emerging markets,” he said. There is also a stable flow of conventional power and heavy industrial equipment.

James Che, managing director of Blue Water Shipping’s energy, ports and projects division in China, also pointed out that the overseas market share held by Chinese wind turbine manufacturers has jumped significantly. “This momentum is being further propelled by the development of deepsea offshore wind projects, which are increasing the demand for transporting heavy lifts – such as large-tonnage components and ultra-long blades – across global markets.”

This was evidenced last year by shipments executed by AAL Shipping, when it transported wind turbine blades measuring 108 m long from China to the UK. Jack Zhou, general manager China for the carrier highlighted the volume of these cargoes ex-China; AAL transported wind turbine generator sets monthly across 2025 – for projects in Europe, the USA and Australia.

Modules for integrated renewable energy production, meanwhile, are still evolving. Growth in battery and chemical energy industries – with integrated wind-solar-hydrogen-ammonia-methanol industrial bases – are changing the final forms of new energy, and thus their storage solutions, Zhou said. Related chemical synthesis equipment and storage tanks will demand new transport solutions in the future.

“Battery energy storage is emerging as another explosive growth point,” added Che. “The average weight per container has surged from 35 tonnes to 46 or even 48 tonnes, presenting new challenges and requirements for port lifting capacity and transport equipment. This shift is pushing the industry to adapt quickly and invest in updated infrastructure and technology.”

BRI build out

Conventional power generation, heavy industry and large scale infrastructure also continue to account for a significant share of project cargo volumes, TGP’s Liu added, while equipment linked to industrial plants, utilities, transport infrastructure and upstream energy projects remains a steady driver of complex exports from China.

Zhou noted that volumes are also tied to the continued build-out of China’s Belt and Road Initiative (BRI). While traditional routes to Europe and North America remain popular, AAL is seeing growth in demand for trade routes serving the ‘Global South’. This has resulted in an increase in the export of refinery equipment, chemical processing modules, port cranes and power transmission systems as China supports infrastructure development across Southeast Asia, the Middle East and Latin America.

From an infrastructure perspective, the export landscape is evolving with increased shipments of complete sets of equipment, modular buildings, steel products and the like – especially as railway and port construction projects gather pace, commented Che.
He confirmed that ‘China plus one’ sourcing strategies are a reality, but it is more about supply chain diversification rather than a “decoupling from China”.

“The emergence of a new model of ‘core components from China + assembly overseas’ increases cross-border transport demand for precision instruments and key modules,” said Che. “While the relocation of some low-end manufacturing segments may affect the export volume of related raw materials and semi-finished products, the impact on the heavy lift/project cargo business is limited, as core equipment and key components remain highly dependent on Chinese manufacturing and exports.”

TGP’s Liu agreed, noting that much of the critical manufacturing for energy, infrastructure and renewable projects continues to take place in China, but additional locations in Asia may support complementary production or downstream project execution.
As a result, project supply chains are becoming more regional and multi origin, rather than moving away from China altogether, he observed.

Further still, Zhou said that new manufacturing hubs in Vietnam, Mexico and Hungary are actually generating fresh transport demand for machinery and intermediate goods originating in China. For example, die-casting and automotive stamping lines are being shipped from China to Mexico, reflecting the growing nearshoring trend in North America.

While the tariff headwinds have done little damage to China’s heavy lift and project cargo export base, Protranser’s Liu believes the macroeconomic conditions have had an unwanted effect on investment in new projects of late. There has been a fall in business confidence since the end of 2024, he said.

Despite the challenges, business has been good into Africa along the Silk Road and into Central Asia, as well as in East and Southeast Asia, with the company sourcing its business both from Chinese clients and by partnering with other logistics services providers in foreign markets such as Europe and the USA, he added.

Regarding the latter, it can, for instance, help foreign forwarders secure competitive rates on Chinese shipping lines.

Leading position

Looking ahead over the next five to 10 years, it seems highly unlikely that China’s leading position in this sector will be displaced, Che remarked. He pointed to several key strengths that set China apart: the country has the world’s highest concentration of heavy lift terminals, a deeply established talent chain skilled in managing super-large items and unrivalled advantages in manufacturing costs.

“While we may see the logistics chain adapting through ‘flexible reorganisation’ in response to changing circumstances, these adjustments will not alter the fundamental nature of China as the source of these goods,” he said.

Likewise, TGP’s Liu pointed to the scale and durability of China’s project cargo ecosystem. “[Its] level of sustained investment underpins China’s continued importance as a global origin for energy-related project cargo. While supply chains are becoming more diversified and regionally interconnected, the fundamental drivers supporting project cargo flows out of China remain firmly in place, supported by manufacturing depth, infrastructure investment and sustained global demand for energy and industrial projects.”

This is an extract from HLPFI‘s China report, which was first published in our May/June/2026 edition.