question of the month
With one year nearly over and another just around the corner, what challenges will face the industry in 2011 and how best can those challenges bemet?
JAMES GAGNE
Chief executive officer, Greater China area, Agility
“In China, there aremany challenges to be faced in 2011, andwe see rising land prices and labour costs as the twomost significant facing businesses across the board. Agility has been active in facing these challenges. “Through our acquisitions
in Chinawe are able to leverage on a nationwide network of logistics facilities and distribution centres. Thismeans thatwe are able tomitigate price rises in the property sector through our asset appropriate strategy. “In addition,we have a
very successful in-house training programmewhich helps in recruiting and retaining talent. “Poor infrastructure
MICHAEL DRAKE
Regionalmanaging director, North Asia, TNT
“In China,we are seeing moremanufacturing companiesmoving their operations and factories fromcoastal to inland areas and,while domestic consumption has been experiencing good growth, increasing labour cost and availability in some areas continues to be something that requires attention. “International trade
“We are able to look at alternative solutions and leverage our network to avoid delays and bottlenecks”
outside themajor cities is amajor hurdle as the pace of development increases along theYangtse and in the west of China. Traffic congestion inmajor cities is also an issuewhichwe have to consider in terms of our road transport distribution operations. “Recently, therewas extensivemedia coverage about
road congestion and bottlenecks along the Beijing-Tibet Highway. Our viewis that this is a‘good’challenge to have, as it demonstrates the progress that has been made in enhancing the infrastructure in China’s highway and road systemover past years. “Becausewe have been operating in China formany
yearswe are able to look at alternative solutions and leverage our network to avoid delays and bottlenecks wherever possible. As the infrastructure improves,we will see improved access to the interior and thewest of China. “Thiswill open up newopportunities for our
customers,whowill require logistics solutions to support their distribution channels aswell as production andmanufacturing facilities.”
between China and the rest of theworld has been strong, particularly in the first half of the year,which has prompted TNT to expand its fleet of freighter aircraft flying between China to Europe. “In the coming year,we
believe the key challenge for our industrywill be meeting the fast-growing and changing demands of our customers in high-quality domestic and international delivery. “Themove of (high-tech)manufacturing to thewest
of Chinawillmean a repositioning of supply chains and building up of assets in the cities that are now being considered as attractivemanufacturing sites (particularly Chongqing, Chengdu and Zhengzhou). “We see an increased demand for high-level, day-
definite road delivery service in the coming years. Given that air service is relatively expensive and rail transport can lack flexibility, road distribution becomes a viable option for the domestic delivery. With TNT-Hoau having China’s largest private domestic transport network,we arewell positioned to cater for our customers needs throughout the country. “All these challenges also serve as opportunities for
delivery service companies, like TNT. Tomeet these challenges and capitalise on suchmarket opportunities, it is important to continue to invest in our people in order to achieve the best possible customer experience.”
AIR LOGISTICSCHINA 33
“It is important to continue to invest in our people in order to achieve the best possible customer experience”
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