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China strives for modern logistics system
hina’s logistics industry contin-
China is making impressive progress in modernising its logistics
direct consequence of how the economy
ued to show impressive growth itself is structured.
in 2009 despite the onset of the
industry. A new report* provides a detailed analysis of the main
China’s economy is best understood
global economic slowdown in late 2008. as a collection of disparate economic re-
According to the China Logistics Develop-
sectors and the key trends, policies and regulations affecting them
gions rather than as one cohesive whole
ment Report 2010, just published by China - in stark contrast to countries like the
Intelligence Online (CIO), total social lo- economic growth, the slowdown caused industry by implementing structural re- gence of modern logistics companies that US. As Beijing emerged from 30 years of
gistics activity in China by the end of 2009 great concern in China, particularly forms. One priority for the government adhere to a certain set of standards for centrally planned economic theory and
equalled nearly Yuan90 trillion, a figure among those engaged in the logistics in- is reducing market access barriers, while service and performance. embraced market capitalism in the late
more than four times that of 2000. dustry. another is to tighten supervision over the In general, the report says, China is 1970s, the country’s varied provinces and
The impressive growth of China’s lo- market. A third is to facilitate the emer- seeking greater agglomeration of its lo- cities established their own regulations,
gistics sector is apparent virtually every- Structural reforms gistics market as a way to improve indus- tariffs, and fees that would later hinder
where in the country, the report says. State In recognition of China’s place in an in-
* China Logistics Development Report 2010,
try efficiency. Under-agglomeration unfettered trade.
and private investment in transport in- creasingly volatile global economy, Beijing 250pp, is available from China Intelligence: plagues not only logistics, but many other In essence, the report says, individual
frastructure has borne new airports, train has moved to modernise China’s logistics facets of the Chinese economy and is a provinces and even municipalities such as
stations, highways, container ports and lo-
gistics centres that are the envy of the de-
veloping world.
Immature market
But despite its impressive growth, the Chi-
nese logistics market remains markedly
immature. The CIO report says that lo-
gistics still accounts for over 18% of overall
GDP, a figure roughly twice the norm of
that in the developed world. Such a high
percentage reflects continued weaknesses,
such as sub-standard infrastructure, un-
der-regulation, lack of standardisation and
pervasive use of outdated technology.
These weaknesses were exacerbated by
the global financial crisis that struck in the
early autumn of 2008 and had severe re-
percussions for the Chinese economy. Sig-
nificant slowdowns in the world’s most de-
veloped economies - in particular the
United States, Europe, and Japan - led to a
reduction in demand for Chinese exports.
For an economy that has relied on a
booming export market as its engine for
More rail
The Shanghai Railway Administra-
tion, Ningbo Port Group and China
Railway Container Transport Corp
(CRCTC) have started a sea-rail
intermodal service - the Coastal Ex-
press - between the eastern cities of
Ningbo and Wenzhou.
The service, starting from the
Ningbo Beilun Port Area Station, op-
erates via Taizhou at 100 km/hour and
terminates at Wenzhou West Station.
The operators say the service will
run on time even if there is not
enough cargo to fill the train. The time
for each trip will be three hours and
57 minutes.
Meanwhile, China’s first joint ven-
ture railway linking Jinhua and
Wenzhou, which was built by the
Ministry of Railways, the Zhejiang
Province government and a Hong
Kong company, is to be upgraded to a
high-speed link.
After the upgrade is completed in
four years at a cost of US$2.6B, travel
time will be cut to two hours from
Hanzhou to Wenzhou, and one hour
from Wenzhou to Jinhua, with speeds
reaching 200 km/hour.
The 189 km Jinhua-Wenzhou line
opened to traffic in June 1998 with
an average speed of 70 km/hour. It
has been one of the most profitable
joint venture railways in China.
Cargo volume on the line hit 21
mt last year, significanlty above its de-
Konecranes sets the benchmark for improving the design of cranes and
signed capacity of 10mt, said Provin-
components, and enhancing software for fl eet management. Our tradition
cial Railway Investment Group presi-
dent Yu Jianer.
of eco-friendly thinking is behind such advanced innovations as our Fuel
Meanwhile, southern Shenzhen
Saving System and electricity-fed cranes. Maintenance is a crucial part
port’s Shekou Container Terminal
of the whole package, ensuring the equipment continues to function
(SCT) has been linked by rail to the
effi ciently. With Konecranes you are set for tomorrow’s demands.
hub at Shaoguan, 220 km north of
Guangzhou City, where cargo arrives
from Wuhan and Beijing.
The Monday to Saturday service
has also put SCT within in easy reach
of Changsha, Zhuzhou, Liling,
Kunming and Nanchang cities. The
trains have a turnaround time of 24
hours. ❏
February 2010 25
25_pos29_WCN_Feb.indd 1 01/03/2010 20:15:37
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