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China opens five-star service station

"If you have a five-star gas station, you have to have a five-star toilet."

A spokesman from Sinopec

At China's first five-star gas station, even the restrooms are ready for foreign competition now that the country is a member of the WTO.

The 16-pump super station in the eastern port city of Tianjin is Chinese oil giant Sinopec's first defense against the coming foreign invasion.

In just three years, Royal Dutch/Shell's red and yellow scallop, Exxon Mobil's tiger and BP's green and yellow shield will line the roads as China throws open its retail market to foreign oil companies following its WTO entry in December.

Sinopec hopes motorists will pull into its station on busy Qixiangtai Street, instead of a foreign competitor, to fill up.

The blue uniformed pump jockeys directing cars into position are a sharp contrast to the rude, slow-moving attendants at many of China's 90,000 gas stations.

Wash your windshield? Need directions? Want some boiled drinking water? All are among the "Eight Free Services" that come with a five-star rating.

And then there's the pristine toilet, rare in a country where a trip to the public bathroom can be a harrowing experience.

"If you have a five-star gas station, you have to have a five-star toilet," said one Sinopec official, gesturing proudly.

Sinopec grades stations on service, size and the amount of gas they sell, and the lowest rating is three stars. The company has 24,000 gas stations around China but only 20 or so have earned the coveted five-star rating after Qixiangtai.

"The stations that can provide faster and more convenient service will win the market," said retail manager for Sinopec Tianjin Oil Co, Zhang Guoqiang, who earned the five stars for Qixiangtai.

But industry officials say it could be a close-run race.

Sinopec and domestic rival PetroChina will benefit from operating on their home turf -- with first choice of location, local gasoline production and extensive distribution networks.

Foreign companies will challenge with more experience, better management and the latest technology. China strictly regulates prices, ruling out price wars with cheap gas for now.

Zhang admits one area where China lags is payment. Many gas stations only take cash, though five-star Qixiangtai accepts special coupons and allows regular billing.

Credit cards are not accepted and company-branded payment cards are unheard of.

But Zhang, who visited the US for a taste of American road culture, thinks Sinopec has an advantage over foreign rivals -- a focus on selling gas.

"In the US, the convenience store portion is the main profit-maker while the gas station is secondary. But as an oil company, we will focus on selling gas," he said.

Still, Sinopec has learned a few things from its rivals. Five-star stations must have a small convenience store, stocking crackers and soft drinks.
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