ATK中遠(yuǎn)項(xiàng)目建議書

Logistics

Services

Industry

Environment

&

Trend

Analysis-

COSCO

Comments

and

A.T.

Kearney

RemarksCOSCO

IPO

SUPPORT

MATERIALSJuly,

2001The

contents

of

this

document

were

prepared

by

A.T.

Kearney

and

may

not

be

used,

altered

ordisclosed

to

other

parties,

without

the

written

permission

of

A.T.

Kearney.

The

informationcontained

in

this

document

has

been

obtained

from

external

sources

which

A.T.

Kearney

believesare

reliable.

However,

A.T.

Kearney

can

make

no

representation

as

to

the

accuracy

orcompleteness

of

the

information

or

projections

derived

therefrom.TableofContents8Point/Final

Version/Logistics

Industry

Outlook

-final/

2ExecutiveSummaryMarketSize&GrowthGlobalChinaServiceDemandGlobalTrendsChinaTrendsCompetitiveEnvironmentGlobalChinaRegulatoryEnvironmentInformationTechnologyAppendixExecutiveSummary8Point/Final

Version/Logistics

Industry

Outlook

-final/

3A.T.Kearne’ys’definitionofthelogisticsservicesindustry8Point/Final

Version/Logistics

Industry

Outlook

-final/

4Structuringandmanaging,onbehalfofcargoowners,solutionsinvolvingsomecombinationofpartsofthesupplychain(i.e.transportation,warehousing,(de)consolidation,etc.)Thelogisticsserviceindustryrepresentatremendousgrowthopportunity,bothgloballyandinChina

MarketCharacteristic

Conclusion

Theglobal

logisticsservices

marketreachedanestimated

US$

190Bnin2000.

The

Chinamarket

is

stillsmall

atUS$0.61

Bn,

but

will

begrowing

rapidly

atCAGR

35%

over

thenextfiveyearsCustomersareincreasinglydemandinghighvaluelogisticsservicesolutions,requiringglobalreachandadvancedsupplychainmanagementcapabilitiesIncreasing

demand

for

globalreach

and

capabilitiesfuelsconsolidationas

largefull

service

providersarepositioningthemselvesforsuccessChina’sentry

into

WTO

is

expected

to

have

two

mainimplications-the

logisticsmarket

willgrowrapidly,

and

competitiveintensitywilldramatically

increaseStrong

IT

capabilities

is

becoming

acore

capabilityoflogisticsservices

providersandiscriticaltobuildinga

logisticsservices

businessMarket

Size&GrowthServiceDemandCompetitiveEnvironmentRegulatoryEnvironmentInformationTechnology8Point/Final

Version/Logistics

Industry

Outlook

-final/

5Source:A.T.

KearneyTheChina

logisticsindustrywill

beshapedby

Chin’as’

entryinto

the

WTO

and

theningofthemarketsubsequentope toforeigncompetitionIndustryScenario2006Rapid

increase

in

M&AactivitiesKeyalliancesformedwithinthenext2-3yearsRapid

expansionof

globalplayers

offeringsophisticatedend-to-endsolution,includinglogistics,transportation

and

ITImplementationofe-commerce

initiativesandincreasingdependenceonITnetworkMergers,AcquisitionsandAlliancesGlobalCompetitorsTechnologyThelogistics

marketwillgrowrapidlyCompetitiveintensitywilldramaticallyincreaseWTOEntry8Point/Final

Version/Logistics

Industry

Outlook

-final/

6Source:A.T.

Kearney1.MarketSize&

Growth8Point/Final

Version/Logistics

Industry

Outlook

-final/

7ThegloballogisticsservicesmarketreachedanestimatedUS$8Point/Final

Version/Logistics

Industry

Outlook

-final/

8190Bnin2000Theglobal

logisticsoutsourcingmarketisestimated

to

US$190Bnin2000Thetransportationand

relatedexpenditures

marketreached

an

estimatedUS$3.8

Trillion

in

2000,andisexpectedtogrow

at

an

annualrate

of

2.3%overthenext5

yearsTheAsianlogistics

outsourcing

marketisestimatedtoreachUS$

31

Bn

in

2001and

is

expectedtogrowatCAGR39%overthenextfive

yearsThegreatestopportunitiesforoutsourcingare

in

transport,warehousing,

andtransportmanagementThegrowth

of

thegloballogistics

services

industry

is

mainlydrivenbyshipper’s’propensitytooutsource

logisticsservicesandorganictransportationmarketgrowthCustomerelectronics,automotiveandapparelrepresentthe

mostattractiveopportunitiesforlogisticsservicesinChinaTheChinamarket

is

still

small

at

US$0.61Bn,butwillbegrowing8Point/Final

Version/Logistics

Industry

Outlook

-final/

9rapidlyatCAGR35%overthenextfive

yearsTheChinalogisticsservices

marketisstillsmallatUS$0.61Bn,but

willbegrowingrapidly

overthenext5yearsThelogistics

services

industry

is

still

at

an

early

stage

ofevolutioninChinaThetransportationand

relatedexpenditures

areproportionatelyhigher

in

Chinathaninmostdevelopedcountries

andNIEs

-indicatinga

major

improvement

opportunityInCoastal

China,demandfor

logisticsservicesisexpectedtobestronginGuangdong

andShanghaiInInlandChina,

thelargest

demandpotentialisinSichuanandthe

Hubei/YangtzeriverregionGrowthinthe

logisticsservicesindustryinChinawill

mainlybedrivenbycontinued

macro

economicgrowthandincreased

propensitytooutsource

logisticsFavorablemacroeconomicoutlookPublicpolicy

andspendingIncreasing

interest

in

outsourcing

forlogisticsneedsGrowing

IT

andE-businessMarketSize&

Growth-Global8Point/Final

Version/Logistics

Industry

Outlook

-final/

108Point/Final

Version/Logistics

Industry

Outlook

-final/

11Theglobal

logisticsoutsourcingmarketisestimated

toUS$190Bnin2000Source:Chinainfobank,

CSFB,

A.T.KearneyGlobalTransportationand

LogisticsMarketSize(2000)US$

3,800BnTransportationandrelatedactivitieshandledbymanufacturers,wholesalers,retailersthemselves(e.g.privatefleet,privatewarehousing)Discretesets

oftransportationandrelatedservicesoutsourcedbymanufacturers,wholesalers,

retailers(e.g.publicwarehousingetc.)Combinationo“ft“ransportationandrelatedservice”s”provisionedby3rdpartylogisticsserviceprovidersOutsourcedUS$190

BnGlobal

transportationandrelatedexpendituresGlobal

outsourcedtransportation

andrelatedservicesGlobal

logisticsoutsourcing

marketUS$BnThe

transportation

and

relatedexpendituresmarketreached

an

estimated

US$3.8Trillion

in

2000,tan

annualrateof

2.3%

overand

isexpected

to

grow

athe

next

5yearsNote:(1)

Asia

includesJapan,Hong

Kong,

Korea,SingaporeandTaiwanTransportationand

Related

ExpendituresbyRegion(2000)Transportationand

Related

ExpendituresbyFunction

(2000)US$BnTotal=

US$

3,837

BnOthers:-

1

.

4

%A

s

i

a(1

):

2

.

2

%Europe:2.6%NorthAmerica:4.0%3,4243,8374,389CAGR=2.3%CAGR=2.8%Warehousing$304BnTransport$2,204

BnOthers$55

BnShipper-Related$20BnInventory$1,102BnAdmin$152BnCAGR2000-20068Point/Final

Version/Logistics

Industry

Outlook

-final/

12Source:

BowersoxandCalantone;CSFB;

A.T.KearneyAnalysisThe

Asianlogisticsoutsourcing

market

is

estimatedtoreachUS$31

Bnin

2001

and

isexpectedtogrowatCAGR39Lo%gistoicsvOeurtsotuhrceingnMeaxrtketfiinvAesiay-eGarorsssRevenueNote:AsiaincludesChina,

Japan,

Honk

Kong,Korea,

Singapore

andTaiwan(US$Bn)CAGR(99-01)

=38%CAGR(01-06)

=39%8Point/Final

Version/Logistics

Industry

Outlook

-final/

13Source:

BowersoxandCalantone;CSFB;

A.T.KearneyAnalysisNote: The

percentagemaynotaddupto

100%duetoroundingSource:Based

on

several

A.T.

Kearney

studies,including:-Worldwidestudycomprising

280

participants(automotive19%,electronics25%,

retail27%,

chemicals29%)-Europeanstudy

comprising

500

participants(retail

26%,food&beverage26%,commodities22%,

8Point/FinalVersion/Logistics

Industry

Outlook

-final/

14machinery12%,automotive7%,electronics&

high-tech4%)The

greatest

opportunities

foroutsourcing

areintransport,warehousing,

and

transportmanagementTransportWarehousingTransportManagementITSupplementaryLogistic

ServicesPurchase

OrderManagement30%47%48%85%20%40%39%76%23%2%5%16%%of

respondentsoutsourcing

1998%

ofrespondents

planed

outsourcing200313%8%Outsourcingby

FunctionResourcerequire-mentsLogisticsManagementComplexity8Point/Final

Version/Logistics

Industry

Outlook

-final/

15Outsourcingof

non-corebusinessactivitiesOrganicgrowthoftransportationmarketschainsRecognitionby

manyshippersthatsupplychain

strategymaybeakeycompetitiveadvantageWillingnessto

outsourcewhenlogisticsnotseenascorecompetencyDevelopmentof

superiorlogisticscapabilitybya

few

3PLsGrowth

indemandfortransportationservicesexpandswith

internationaltrade

growthGlobalization

ofmanyindustriesmeans

goodsneed

tomoveover

longer

distancesat

fasterspeedswith

higherreliabilityGrowth

inLogisticsServicesSource:UBSWarburg,

IDCGrowthDrivers

Details12Thegrowth

of

thegloballogisticsservicesindustryismainly

driven

byshippers’propensity

tooutsource

logisticsservices

and

organictransportationma?

Irnckreaesetdgcormoplewxitytohfglobal

supply8Point/Final

Version/Logistics

Industry

Outlook

-final/

16Consumerelectronics,automotiveandapparelrepresent

the

mostattractiveIndustryRemarksstics

sConsumerElectronicse?rHvighliy

cmaerkest-oirinented,Cneedhquiicknresaponseto

consumer

feedbackManufacturers

have

to

to

improve

operation

efficiency

continuously

dueto

intense

competitionRelatively

high

product

value

and

less

pricesensitiveApparelHigh

requirement

for

timing

and

reliability

of

linersHigh

gross

margin

industry,

production

cost

and

logistics

account

forless

percentage

of

salesPrefer

timely

feedback

from

destination

ports,

i.e.trade

consultingservicesAutomotiveAutomotive

supplies

involve

over

30,000

parts,

whichneedconsolidatingsupplierstohandle

logisticsIntense

competition

drives

companies

to

reduce

cost,

currentinefficiency

in

self-handling

leads

companies

to

consider

outsourcingservices

activelyMachineryHigh

value

products,

not

very

price

sensitive,

but

sometimes

decisionsare

made

overseasPacking

requirement

involves

technical

difficulties,

unwilling

tooutsource

logistics

servicesTobacco

&LiquorHigh

profit

industry,

not

very

price

sensitiveHigh

quality

requirement

for

dry,

no

smell,

no

leaking

containers,

hencecontainerized

in

factoryClearance

of

cigarettes

needs

to

be

done

by

professional

I/E

companiesormanufacturesFurnitureLarge

and

special

shape,

therefore

the

way

to

put

them

into

containerscan

impact

the

number

of

containers

to

be

used,

which

directlyrelatedto

cost

-usuallydonein-houseCost

sensitive,

firms

usually

choose

less

busy

season

to

getcheaperpricesPrimaryGoodsFrozen

products

and

fresh

products

need

to

be

handled

fast

with

careOther

products

are

low-value

and

need

no

specialservicesChemicals&MaterialsLow

valueproducts,

highlypricesensitiveLowerquality

requirement,

usually

containerizedat

portsOpopoprtpunoityrAtssuessnmeinttibeysInfdousrtrlyogiNote: 1.

Size

of

circlerelative

tosegmentsize

in20002.

Analysisis

indicative

onlySource:A.T.

Kearney

fieldinterviews

and

researchHighLowGrowth

(2001-2006)LowHighAutomotiveConsumerElectronicsFurnitureMachineryPrimaryGoodsChemicals&MaterialsApparelTobacco,LiquorOutsourcingPropensityAddmarket

and

trendsanalysis

byindustry8Point/Final

Version/Logistics

Industry

Outlook

-final/

17Market

Size&

Growth-China8Point/Final

Version/Logistics

Industry

Outlook

-final/

18TheChina

logisticsservicesmarketis

stillsmall

at

US$0.61

Bn,

but

willbe

growing

rapidlyoverthenext5yLeogaistricss

Outsourcing

Market-Gross

Revenue(2000,US$Bn)Note:AsiaincludesChina,Japan,HongKong,SingaporeandTaiwanSource:BowersoxandCalantone;CSFB;A.T.KearneyEstimatesCAGR=35%190230.61ChinaLogisticsServiceMarket

(US$,Bn)8Point/Final

Version/Logistics

Industry

Outlook

-final/

19ThelogisticsservicesindustryisstillatanearlystageofevCharacteristicsEmergingdemandforoutsourcedlogisticsservicesLowvalueaddedservicessuchastransportandwarehousingarethemajortypeofservicesoutsourcedTraditionalin-housebehaviourbeingimpactedFastgrowthoflogisticsuserbaseandhigherrequirementforbroaderservicesLargenumberofservicesproviderscompetingforcustomersandhumanresourcesMosthighvalueaddedservicesarefreeandprovidedassellingpointsLogisticsoutsourcingbecomescommonpracticeandanimportantleverforcompetitionConsolidatedservicemarketwithafewestablishedmarketleadersLogisticspenetrateinsupplychainandreplacetraditionalbusinessmodelsGloballogisticsintegratorsprovideone-stopsolutionworldwideSpecializationandclosecooperationamonggloballogisticsserviceprovidersOptimizedallocationandintegrationofresourcesalongthesupplychainStageEmergenceGrowthPenetrationGlobalizationWorldLeading(US)olutioninChinChainaTodaySource:A.T.Kearney8Point/Final

Version/Logistics

Industry

Outlook

-final/

20WarehousingandDistributionTruckingTruckingcompaniesareonlyallowedtooperateinrestrictedregionsAirlineSevendomesticairlinesdominateregionaloperationsDesignated

foreigncarriersare

givenamaximumentitlementof50tonnesperweekLogisticsCenterandFreightForwardingGovernmenthasestablished15FreeTradeZonesandsomelogisticscentersaresetupthereInlandtransportationishandledbydomesticfreightforwarderwhoisusuallysub-contractedbytheinternationalfreightforwarderShippingRivertransportationhasdeclinedMostvesselsarecharacterizedbylowspeedandhighenergycostsThedomesticwarehousingmarketiscurrentlysmallandover-suppliedwithbasicwarehousesprovidingvirtuallynovalue-addedservicesSomeconsolidationjuststartedamongthelargewarehousingcompaniesstry

is

still

at

an

early

stage

ofued)8Point/Final

Version/Logistics

Industry

Outlook

-final/

21TransportationandrelatedexpendituresareproportionatelyhigherinChinathaninmostE–s–idevelopedcountriesand

NIamajorimprovementopportundicatingityTotalTransportationandRelatedExpendituresand%ofGDP

(2000)Note:(1)VAS:Value-added-services(2)Including

packaging,admin,

information

services,ect.Source:BowersoxandCalantone,CSFB,IMF

1997study;

Chinainfobank;

A.T.KearneyAnalysisUS$BnnChinaTransportationandRelatedExpendituresBreakdown

by

Function

(2000)US$Bn(2)(1)Total=

US$248BnInCoastal

China,demandforLlooggistiicss

tDiecmsansde–SrevlecitecdePsroivsinecexs

ipn

CeocasttaelCdhitnoa

bestronginGuangdongandShanHighLowProvinceDemandSizegDhemaanidGrowthRemarksGuangdong5Majorexports

areprocessing

oflowervalue-addedproducts

no

special

requirement

for

logisticsquality;Roadtransportation

isconvenient,

often

containerizedin

factoryto

reduce

cost

lessneed

for

warehousing/consolidationElectronicsindustry

isbooming

inDongguan,

which

hassome

leadingcompanies

likeHuawei

potentiallargeprofitable

customersShanghai(Jiangsu,Zhejiang)5Shanghai

isthefastgrowing

economic/financialcenterinChina,whichhas

somemajorMNCssuch

asSGM,Acer,Philips,

etc.

They

arematured

customersof

logisticsservices

and

lesspricesensitive.On

theotherhand,toget

thedealsfrom

them

usuallyneedsto

involve

high

levelnegociationLargecompanies

inShanghai

and

nearby

areas

aremainly

JVsof

automobile

andconsumer

electronicsindustry,whichhavehigh

productvalueand

lower

price

sensitivityShandong(Qingdao)4Qingdaohas

severalfamouslocalcompanies,such

asHaier,HiSense,AukmaandQingdaoBeer.Theyare

more

qualityoriented

andless

pricesensitiveFrozenproducts

accountfor

15-20%

of

thevolume.

Quality

requirementsfor

frozen

products

arevery

highintermsof

timing

and

handlingcare.Hence,frozen

productsshipperstend

to

belesspricesensitiveand

more

qualityconcernedFootwear

andgarments

accountfor

significant

portion.Somelargecustomers

such

asPayless

Shoes

(No.

1customerof

COSCO

involume)

requiresaccurate

shippingtime

and

full

range

ofsophisticated3PLservicesfromP/O

management,

trade

consulting

tospacebooking,

warehousing

and

transportationHebei,Beijing,Tianjin4Beijing

is

theNo.1aircargocenter

in

China.Inaddition,

Beijin’gs’hi-tech

industry,whichneedsa

lotofairtransportation,isdevelopingveryfastOver

80%ofthevolume

throughTianjinport

areagriculturalproducts,

furniture,metalhardwareand

rawmaterials,allbeinglowvalueproducts.Inaddition,mostshippersareinpoorfinancialconditionsandare

verypricesensitiveStrongWeakSource:

A.T.Kearney

field

interviews

andanalysis8Point/Final

Version/Logistics

Industry

Outlook

-final/

22In

inland

China,

the

largest

demandpotentialisinSichuanand

the

Hubei/Yangtze

river

regionLogistics

Demand

–Selected

Provinces

in

InlandChinaHighLowStrongWeakProvinceDemandSizeDemandGrowthRemarksSichuan(Chengdu)3Have

the

3rdlargest

distribution

center

in

China,

thelargest

population,

andimportant

heavy

industrybaseThe

logistics

industry

there

has

already

attracted

interestof

foreign

large

shippers

likeIkeaand

investorsincludingHutchisonWhampoaLocatedin

mountain

areas,

road

transportinfrastructure

isinconvenient,

so

highlyrelying

on

rail

transportHubei,YangtzeRiverRegion3Exports

are

low-value

productsincludingtobacco,cotton,

chemicals

and

steel

materialsManyimports

are

materialforJVs

(e.g.CitreonandDongfengCummins),ofwhich

decisionsareusuallymadeoverseasMarket

isveryfragmentedandshippers

generally

have

smallscale/volumeNo

warehouses/pilingcenters

with

moderncontainerhandlingcapacity

and

advanced

ITstructureareavailable,can

be

a

potential

developmentareaYunnan2Mostimportantexportindustryistobacco,whichhas

high

profit

margin,highqualityrequirement

forlogisticsservices,

andnot

very

price

sensitiveExports

forwood,woodenmaterials

and

furniture,

which

accountedfor

over

30%of

export

volumebefore,arelargely

reduced

due

to

newly

imposedgovernmentsanction

oncutting

treesChongqing2Agriculturalproducts,metalproducts

andmotorcycles,

whichtotallyaccountfor

over

80%of

the

exportvolume,

arealllow-value

products,

price

sensitiveand

have

flat

growthUnderdeveloped

infrastructure,esp.road

and

rail

transportation

have

limitedforeign

investments

in

thisregion.Cargoes

usually

transported

bybarges,

which

isthe

cheapestmodeSource:

A.T.Kearney

field

interviews

andanalysis8Point/Final

Version/Logistics

Industry

Outlook

-final/

238Point/Final

Version/Logistics

Industry

Outlook

-final/

24Growth

inthe

logistics

services

industry

inChinawillmainly

bedrivenbycontinuedmacro

economicgrowth

and

increased

propensity

tooutsourcelogisticsGrowthDriver

ImplicationThe

Chinese

economyis

expectedtogrowatCAGR

7%overthenextfiveyears.Increasedinternational

and

domestic

trade

willdrive

demandforlogisticsservicesPublic

policy

andspendingsupportsimprovements

inChina’slogisticsinfrastructure,providingopportunitiesfor

further

expansion

oflogisticsserviceproviders.

Capable

foreignservice

providers

arelimitedin

business

scope

byregulation,

and

theirfull

entry

afterWTO

will

drivethe

industrytowardinternational

best

practicesThereis

increasinginterest

amongChina-basedenterprises

in

outsourcing

for

logistics

services.Overseas

businesses

are

extending

theirsupplychains

deeperintoChinaThe

fast

growing

market

in

online

B2Btransactionsprovidesan

additional

marketsegmentfor

logistics

servicesFavorableGrowthOutlookfortheChinaLogisticsServices

IndustryFavorableMacroEconomicOutlookPublic

Policy

andSpendingIncreasingInterestin

OutsourcingforLogistics

NeedsGrowing

ITandE-Business1234Source:

A.T.

KearneyAnalysis8Point/Final

Version/Logistics

Industry

Outlook

-final/

25The

Chinese

economyis

expected

togrowat

CAGR7%overthenextfiveyearsSource:

Chinainfobank,

A.T.

KearneyAnalysisProjectionof

China’s

GDPGrowthand

Structure

(RMB,Bn)Continuousgrowth

inGDPindicatesa

robustand

fastgrowingmacroeconomy,providingopportunitiesforsophisticated

logistics

serviceprovidersThe

economic

structurewillbecontinuously

optimized

and

upgradedLogisticsis

directly

correlated

withthemanufacturingindustry,thereforegrowthofsecondaryindustries

will

lead

tothegrowthof

logistics

servicesImproved

services

industries

will

alsohave

apositiveimpact

onthe

logisticssectorImproved

supportiveservices

suchas

legal,

accounting,etc.Improved

telecommunicationcapabilitiesRemarksSecondary:7%Tertiary:9%CAGR(01-06)Total:

7%Primary:3%13,3679,560FavorableMacroEconomicOutlook18Point/Final

Version/Logistics

Industry

Outlook

-final/

26DemandforlogisticsservicescomesfrombothinternationalanddomSource:

Hong

Kong

TradeDevelopmentCouncilResearch;

ChinainfobankDemandforLogisticsServicesestic

tMroareIdnteernational

TradeMoreDomestic

TradeInternational

tradeInternational

tradehas

sustainedtheglobaleconomicfluctuationandkeptfastgrowinginthepast5

yearsIt

isprojectedto

grow

ata

CAGR

of7.5%,

withtotaltradevaluereachingUS$

680Bnin2005ExportsExpected

to

rise

byanadditional2.4%

peryearover

the

firstfiveyearsofWTOentryShareas

worldexports

isprojectedtorise

from

current

3.5%

to7.3%in2005ImportsProjectedriseof

US$21.3BnafterWTOProjectedannual

growth

rate

will

bemarginally

fasterthanexportDomestic

TradeCAGR

ofretailsalesof

consumergoods

inthe

“Ninth

5

Year”

was11%Positive

outlook

duetocontinuouslygrowingpurchasingpowerDevelopment

ofchainstoresSales

revenueofchainstorecorporationshasexperiencedoubledigitrise

from1997Multinationalchain

stores

have

beenaggressivelyimproving

theirpresenceinChinamarketInter-city

tradeCurrently

morethan

50%

of

theforeign

industrialand

retail

firmsdistributed

theirproducts

in

morethan

50

citiesInter-city

trade

willbe

frequentafterWTOFavorableMacroEconomicOutlook18Point/Final

Version/Logistics

Industry

Outlook

-final/

27The

State

Economic

and

TradeCommission

hasestablisheda

master

planfor

developinglogisticsservices

in

CShtaitenEaconomicandTrade

CommissionLogistics

Industry

TradePlan30Pilot

CentersInter-regionalNetworksSupplyChainSystemsSelectsuitable

enterprisesin

various

keycitiesto

establish30

pilotlogistics

and

distributioncenters10NationalEnterprisesAbout

10

specializedkey

enterprises

withnational

logistics

anddistributionnetworks

willbe

developedRealignassetsto

form

inter-regional,inter-sectorandinter-ownership

logistics

and

distributionnetworksEffortswill

be

madeto

explore

thepossibility

of

using3PL

anddistributionenterprises

to

buildsupplychainsystems,

and

tobringfacilities

and

services

oflogistics

companies

closertoadvanced

international

standardsPublicPolicyand

Spending28Point/Final

Version/Logistics

Industry

Outlook

-final/

28A

widearray

of

government

supported

logisticsinfrastructure

development

programs

are

underwayacross

ChinEaxamples

of

Government

Initiativesto

Improve

LogisticsInfrastructureSource:ChinainfobankA

numberofnationallogisticscenters

areunderconstruction,withreasonablesize,standardizedoperation,andmodernfacilitiesCoastalLargeCities-

LogisticsCenterInlandAreas

-Road/RailwayModernthird

partylogisticsand

distributionbaseIts

mainbodywillbelinkedto

7railwaysand

hundredsofrailway

transit

pointsExpected

to

serve

forthedispatchof

over90%ofdailynecessities

inthecityAlso

serve

easternChina

andthewholecountryShanghai

CommercialLogistics

CenterPublicPolicyand

Spending2New

railways,electricrailways,highways,expressways

are?inHpihgahsew:

ay

densitywillgrow

to

about1650km/10000sq.kminyear2005InvestRMB

270Bntoupgraderailwayinfrastructure8Point/Final

Version/Logistics

Industry

Outlook

-final/

29Interviews

with

SOEsand

foreign

investedenterprisesinChinaindicate

a

relativelystronginterest

inoutsourcinglogisticsservicesSource:A.T.

Kearneyfield

interviews

andresearchSOEsusuallyhave

own

warehousesandtrucking

divisions,

therefore,they

demand

less

warehousing,

transportation

andotherrelatedvalue-added

services.However,

in

faceofincreased

competition,SOEshave

agrowinginterestin

outsourcing

logisticsForeign

invested

enterprises

have

the

highestrequirement

for

logisticsservices

intermsofrange

andquality.

These

companiesareextending

their

supply

chainsinto

China

-replacing

middlemen

who

usedto

get

Chinaorigin

cargo

tothe

port.MNCswill

be

lookingfor

logisticsservices

companiesin

Chinatohelpthem

fill

thevoidImport/export

companieshave

the

leastdemand

for

logisticsservices

providers,because

most

ofthesecompanies

also

providetransportation,

customs

clearance

services,etc.Remarks%of

Respondents

with

InterestinOutsourcing

LogisticsServices

(2001)IncreasingInterest

inOutsourcingforLog